A diversified, low volatility portfolio of global equities
What the Analytic Global Managed Volatility Fund offers
Low volatility exposure
Potential for high long-term returns at significantly lower risk than the benchmark
Active quantitative investment approach
Identifying low-risk securities
Focus on providing downside protection in volatile markets
29 Oct 2015
About the Analytic Global Managed Volatility Fund
Analytic Investors LLC aims to offer investors long-term returns by investing in a diverse portfolio of global equities with low volatility. Analytic was founded in 1970 and is based in Los Angeles. It provides quantitatively-driven investment management services to both institutional and retail investors.
The Analytic Global Managed Volatility Fund aims to achieve a long-term return (before fees and expenses) that equals to or exceeds the MSCI World ex Australia Index, in $A unhedged, with net dividends reinvested (Benchmark), at a lower volatility level (measured by the standard deviation of returns).
The fund provides exposure to global equities with lower forecast volatility, when compared to the Benchmark.
Analytic uses a quantitative, risk-based approach to selecting stocks. It focuses on forecasting a stock's risk by analysing its risk characteristics. It also uses an optimisation process, which attempts to calculate the most efficient combination of securities to produce a low volatility portfolio.
How the Analytic Global Managed Volatility Fund works
Analytic's investment team believes that there is no long-term relationship between risk and return in equity markets. In other words, over the long term stocks with low volatility tend to keep pace with stocks with high volatility.
Analytic's investment team also takes the view that the level of risk in global markets is constantly changing. Its dynamic investment process takes this into account by continually assessing both long-term and short-term risk levels. The investment team monitors the fund's portfolio of stocks daily and changes the portfolio composition both as market risks change, and as individual security risk and return forecasts change.
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