January 17, 2012
--- Allianz Global Investors Capital (AGIC) is offering
investors managed volatility investment strategies designed to lower expected
portfolio risk while achieving above-benchmark returns. ---
The
AGIC systematic portfolio management team applies a quantitative approach to
structuring Global Managed Volatility and U.S. Large Cap Managed Volatility
portfolios. The team anticipates launching an international managed volatility
strategy in February 2012.
The
new strategies are founded on “the low volatility anomaly.” According to AGIC,
contrary to widely accepted economic theory, portfolios of low-volatility
stocks have proven to outperform high-volatility stock portfolios over time.
“Financial
theory suggests markets are efficient and investors demand to be compensated
for risk,” said Kunal Ghosh, portfolio manager. “Our empirical studies,
however, directly refute the relationship between risk and reward.”
The
AGIC systematic team seeks to identify stocks with complementary risk
characteristics to create portfolios with lower expected risk and higher
returns than their benchmarks.