Overview and Applications
Intech® low volatility strategies attempt to help you control funded status volatility by offering upside equity market participation with downside protection. We construct these strategies irrespective of a low-volatility anomaly or factor; instead, we focus on low-volatility outcomes. Our clients use these strategies to address a wide range of needs:
- Allow for higher equity exposure without increasing risk throughout a target-date glide path
- Reduce 100% downside capture of cap-weighted passive strategies
- De-risk a well-funded plan without reducing equity exposure
- Increase equity exposure without increasing equity risk budget
- Avoid index arbitrage and limitations inherent in minimum volatility indexes
We employ one process across five investment platforms, including our low volatility equity platform. Platforms differ by risk-return objective – relative or absolute. Platform strategies differ by benchmark and/or risk budget.