Intech’s CEO and CIO, Adrian Banner, PhD, and President, International Division, David Schofield, presented an IPE-moderated webinar discussing beta dislocations in March 2020.
Equity investors found few places to hide in this year’s drawdown. Even low volatility strategies underperformed in their first real test since the global financial crisis. Intech identified an anomalous shift in stock betas as the culprit, but why did so many low volatility strategies have trouble circumventing this dislocation? The answer to this question is an opportunity for plan sponsors to learn the important distinctions between defensive equity implementations.
In the webcast, Dr. Banner and Mr. Schofield demonstrated how simple differences in implementation can lead to a wide range of outcomes. They explored:
- How the dislocation in stock betas affected market structure
- Why some low volatility approaches prove more resilient
- Which key factors to consider when evaluating defensive equity strategies