INVESTING IN LOW VOLATILITY EQUITIES
Mercer believes an allocation to a “low volatility” equity strategy is a valuable component of a well-diversified equity portfolio. Exposure to low volatility stocks can be achieved via a “systematic” low volatility approach or a fundamental “defensive-quality” approach. However, the choice of approach requires careful consideration as portfolio characteristics and performance can vary significantly.
The following discussion reviews the rationale for investing in low volatility equity, covering specifically:
• Rationale for investing in low volatility equities
• Ways to invest in low volatility equities
• Review the current environment.