S&P Introduces Risk Controlled Versions of Popular Indexes

May 13, 2009 (PLANSPONSOR.com) - Standard & Poor's has launched risk controlled versions of its S&P 500 and S&P/ASX 200 indexes.

The S&P 500 Risk Control 10% Index and the S&P/ASX 200 Risk Control 15% Index track the return of a strategy which adjusts the exposure to each underlying index to control the level of risk. An S&P announcement said the indexes are for investors looking to gain exposure to the U.S. and Australian markets while limiting their risk

The S&P 500 Risk Control 10% Index targets a volatility level of 10% and the S&P/ASX 200 Risk Control 15% Index targets a volatility level of 15%. If the risk level reaches a threshold that is too high, the exposure to the Index is decreased to maintain the target volatility, the announcement explained. If the risk level is too low, then the Index will employ leverage to maintain the targeted level of volatility.

More information is at www.strategyindices.standardandpoors.com .

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