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SMA Inception Date: 01/01/1988
Objective: 
Seeks to deliver a majority of the long-term return of the US equity market with less than half the risk.

Why Choose This SMA?

  • Reduce volatility and downside risk within a diversified portfolio by replacing a portion of the existing equity allocation.
  • Reduce overall portfolio volatility without increasing exposure to low-yielding, interest-rate-sensitive fixed income.
  • Gain equity exposure for risk-averse investors seeking higher long-term return potential than that offered by bond investments.

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.
  • A diversified stock portfolio designed to track the performance of the S&P 500® Index is combined with an actively managed portfolio of S&P 500® Index call and put options to maintain a consistent level of market exposure and relative risk profile while generating attractive cash flow.
  • 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

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