MINIMUM VOLATILITY
PHILOSOPHY
Optimize return potential with regards to levels of absolute risk
Created in 2010, Seeyond's strategy is aims at minimizing the overall volatility of an equity portfolio with the objective to outperform the reference equity market over the long term. This active portfolio management approach consists in selecting stocks based on their risk profiles.
By approaching equity markets through the prism of risk rather than company fundamentals (a method specific to more traditional approaches), the management team first seeks to eliminate behavioral biases that can influence management decisions (overconfidence, herd mentality, lotteries, greed, etc.) but also biases caused by management with benchmark-related constraints (known as "benchmarked management.")
This risk-based portfolio construction then aims to achieve efficient diversification in the behavior of the securities within the portfolio and thus reduce the absolute risk of the portfolio. The management team thus opted to to apply a pure Minimum Volatility approach without any bias in terms of sectors, countries or market capitalization sizes.
KEY POINTS
Optimized risk management for long- term results
An objective of superior risk- adjusted returns over the long term with integrated risk management throughout the investment process
Transparency and liquidity
A pure equity investment solution with no use of any other financial instruments, aiming to achieve greater risk minimization
Truly active management tested over the past
Continuous risk monitoring and an original approach to portfolio rebalancing to obtain an optimalportfolio over time
OUR APPRAOCH
Investment strategy
The Minimum Volatility strategy seeks to build a diversified portfolio of securities demonstrating low volatility and low correlations to each other. The portfolio constituents result from security selection from a risk angle.. The management team applies minimum investment constraints (sectors, countries, market capitalization) , enabling full deployment of this strategy. It is also a pure solution investing solely in equities and no use of derivatives or cash to meet investment objectives.
Objective
To outperform the equity market benchmark over the long term while minimizing overall portfolio volatility.
To offer an asymmetrical risk/return profile: participate in a growth dynamic and reduce market downturns.
Main risks: capital loss, equity market risk (including small and medium caps), currency risk, remerging markets’ risk, geographic and portfolio concentration, discretionary management
Investment universe
OUR EXPERTS
Seeyond's Minimum Volatility strategy was created in 2010 by Nicolas Just, CFA, Managing Director and Chief Investment Officer, and Juan Sebastian Caicedo, CFA. They have also developed the management tools specific to this strategy, and today they manage the entire range of Minimum Volatility products developed over different investment universes and management specifications.
Nicolas JUST
Deputy Chief Executive Officer - Chief Investment Officer
- Head of Smart Beta - Natixis Asset Management (2012)
- Head of core equity management - Natixis Asset Management (2010)
- Head of model-driven management Europe and Japan - Natixis Asset Management (2008)
- Sell-side equity analyst – Exane BNP Paribas (2002)
- Derivatives trader – Société Générale, New York (1994)
Juan Sebastian CAICEDO
Portfolio Manager
- Juan Sebastian Caicedo began his career in 2008 with Natixis AM as Quantitative Equity Manager. Since 2012, Juan Sebastian Caicedo is a Portfolio Manager in Seeyond’s Equity investment team.
Ruixing CAI
Portfolio Manager
- Ruixing Cai started her career in 2016 at BPCE group where she worked as a Risk Analyst. In 2019, she joined Seeyond as a Portfolio Manager.
Stéphanie NOEL
Portfolio Manager - Implementation
- Stéphanie Noël began her career in 2002 at Axa IM as a Middle Office Manager. In 2012, she became a Portfolio Manager at Natixis AM. Since 2018, Stephanie Noël is a Portfolio Manager in Seeyond’s implementation team.
Sébastien GUERIN
Portfolio Manager - Implementation
- Sébastien Guerin began his career in 1989 as an Equity Trader, then Portfolio Manager, in 2002. He entered Seeyond research team in 2014 as a Global Analyst.Since 2018, Sébastien is a Portfolio Manager within Seeyond Implementation team.