LFIS’ hedged equity strategy offers exposure to the upside of equities while cushioning the downside. The strategy is therefore a potential solution for investors looking to hedge their tail risk on equities and/or to maintain or increase equity exposure in a low-yield environment.
LFIS offers a hedged equity strategy designed to offer investors asymmetric exposure to the performance of equity markets. Our simple, transparent and systematic approach seeks to allow investors to participate in all or part of the upside in equity markets while diminishing the volatility and the sharp drawdowns (both over the medium- to long-term).
For insurance companies, in particular, LFIS’ systematic approach may effectively reduce the solvency capital requirement of their allocation to equities under the Solvency II Directive.
The strategy is implemented by LFIS’ experienced Multi-Asset and Fund Solutions team team which includes experts in derivative-based fund strategies and is available in a UCITS format.