SMA Inception Date: 04/01/2015
Seeks to outperform the Cboe® S&P 500 PutWriteSM Index over the long-term.

Why Choose This SMA?

  • Reduce volatility and downside risk within a diversified portfolio by replacing a portion of the existing equity allocation.
  • Gain equity exposure for risk-averse investors seeking higher long-term return potential than that offered by bond investments.
  • As a complement to plan immunization/liability matching.

Investment Strategy

  • A low volatility equity strategy that uses an index options-based approach with the goals of reducing the volatility of long-only equity exposure and enhancing risk-adjusted return.
  • Actively manage a portfolio of written index put options to monetize volatility.
  • Portfolio of written index put options is secured with a portfolio of short-term, high quality cash securities.
  • Index option contracts can provide risk reduction and risk-adjusted return enhancement from exposure to the implied volatility risk premium (the volatility priced into index option contracts is consistently overpriced relative to realized volatility).

Portfolio Managers

Paul Stewart, CFA®

Portfolio Manager

Michael Buckius, CFA®

Portfolio Manager

Kenneth Toft, CFA®

Portfolio Manager

Daniel Ashcraft, CFA®

Portfolio Manager

Mitchell Trotta, CFA®

Portfolio Manager