Global Equity Volatility Focused
Provides exposure to low beta, quality and value factors with the potential for better risk-adjusted returns than the cap-weighted index.
Our philosophy
Lower volatility strategies offer characteristics that could provide investors more flexibility in asset allocation decisions:
- A smoother performance pattern
- Lower drawdowns which can help preserve capital in down markets
- Better risk-adjusted returns than the cap-weighted index
Our process
- Our lower volatility strategies are differentiated by design, combining quantitative discipline and qualitative judgment
- We identify and rank quality stocks with attractive profitability and valuation profiles
- We use diversification through minimum variance optimisation to create a low volatility portfolio, balancing low volatility names and less correlated, higher volatility names to reduce absolute risk
- This strategy includes less correlated, higher volatility names to reduce absolute risk
- Fundamental research focuses on confirming the volatility outlook for each stock and whether its profitability is sustainable
HSBC strengths
- We harness the intellectual capital of a global network of over 200 equity specialists in 20+ countries and territories
- Our fundamental research adds value within a disciplined framework
Focus on
Risk Warning
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.
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