Administration

Managed Volatility Investing a Growing Trend

By PLANSPONSOR staff editors@plansponsor.com | January 10, 2013
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January 10, 2013 (PLANSPONSOR.com) - Managed volatility investment strategies are emerging as a solution for investors looking to protect against future stock market losses, Strategic Insight’s research found.

“Managed Volatility: The Anatomy of an Investing Trend” analyzes the mutual funds that use this innovative investment style. The strategy seeks to outperform the broad stock market by reducing total risk.   

In less than one decade, managed volatility assets have accelerated to $129 billion as of September 2012, according to Strategic Insight, an Asset International company. With so much new fund activity and asset accumulation, the funds have piqued interest among asset managers, insurance companies and distributors.  

The analysis reveals that a substantial amount of growth comes from funds converting to managed volatility mandates. At the end of September, $61 billion, or 47% of the total assets in managed volatility funds, came from converted portfolios. Most of this activity has been in the variable annuity space, which also commands the bulk of assets.