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Stabilization Strategies

Strategies for reliably improving the risk/return ratio

Securian Asset Management has developed a sophisticated risk management approach which is suitable for all institutional investors that invest in risky asset classes but require stable returns. Our Equity Stabilization Strategy:

  • Systematically uses the observation that high volatility periods tend to lead to unfavorable risk asset performance
  • Explicitly targets downside mitigation
  • Implements our rigorous risk management approach, that meets the stringent requirements of highly-rated insurance companies

We can provide our Equity Stabilization Strategy via a spectrum of implementations against single or multiple risk asset class portfolios, in a way suitable for institutions at all levels of size or sophistication, as illustrated by our funds listed below.

Balanced Stabilization strategy

Balanced Stabilization strategy is a balanced allocation strategy with active risk management.

Potential key benefits

Seeks to maximize risk adjusted total return with protection for significant losses.

Draws on Securian Asset Management’s risk management experience in using financial instruments for hedging risk and lowering volatility risk and lower volatility

Seeks 10 percent or lower volatility using equity futures to efficiently manage overall equity exposure.

Strategy highlights

Balanced allocation strategy with risk management overlay.

The strategy targets an effective equity exposure as high as 90 percent in periods of low market volatility with higher expected returns, or as low as 10 percent in periods of high market volatility with lower expected returns. 

Global Equity Stabilization strategy

Global Equity Stabilization strategy is a low volat ility equity-based strategy with active risk management.

Potential key benefits

Seeks to maxamize risk adjusted total return with protection for significant losses.

Draws on Securian Asset Management’s considerable experience in using financial instruments for hedging risk and lowering volatility.

Seeks 10 percent or lower volatility using equity futures to manage overall equity exposure.

Strategy highlights

Low volatility equity-based strategy with a risk management overlay.

Targets approximately 35% of the portfolio for investment in international equities.

The strategy targets an effective equity exposure as high as 100 percent in periods of low market volatility with higher expected returns, or as low as 10 percent in periods of high market volatility with lower expected returns.

Portfolio managers may use some or all of the techniques and processes described.

Target allocations are subject to change.  

Investing involves many inherent risks. Investments can and do lose value, including the potential loss of the entire investment.

Prior to 07/01/2020, the Balanced Stabilization strategy was named Dynamic Managed Volatility strategy, and the Global Equity Stabilization Strategy was named Managed Volatility Equity strategy.

See additional disclosures at the bottom of this page.

The Stabilization Strategies team

Jeremy Gogos, bio photo

Jeremy Gogos, Ph.D., CFA

Vice President & Portfolio Manager

Merlin Erickson, bio photo

Merlin Erickson

Vice President & Portfolio Manager

DOFU 6-2023

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