Julex Dynamic Alpha Strategies help institutional investors achieve better returns with lower risks than their traditional benchmark investments. Dynamic Focus, Dynamic Factor and Dynamic Emerging Markets strategies can be used as part of their equity investments. Dynamic Income provides additional returns than the traditional bond benchmark with similar risks. In current low interest rates environment, Dynamic Income strategy is an ideal strategy offering higher income with downside protection. In addition, our strategies have low correlations with traditional asset classes. They can also be incorporated into an investor’s alternative investment program to gain diversification, especially during the market downturns.
Benefits of Julex Dynamic Alpha Strategies
Julex defines risks as peak-to-trough drawdown rather tracking error or volatility. It is consistent with investor’s risk notion of “losing money”. Our strategies are benchmark-agonostic. We believe the traditional benchmark-centric investments do not provide enough downside protection, as evidenced in the financial crisis of 2008. Institutional investors can benefit from our strategies in a number of ways, including:
- Outperform market indices with lower volatility and drawdowns in a program’s equity allocation;
- Reduce the magnitude and frequency of deep drawdowns;
- Generate attractive income and return with low risks with our Dynamic Income Strategy;
- Deliver better risk-adjusted returns and lower correlations with traditional asset classes than hedge fund index without hedge fund fees;
- Long-only liquid ETF portfolios without leverage or derivatives;
- Daily liquidity and complete transparency with separately managed accounts;
- Strong quantitative discipline and robust investment models and process.
Where do Julex Dynamic Alpha Strategies Fit into an Institution’s Portfolio?
Institutional investors have unique needs defined by their liabilities. Some institutional characteristics common to insurance companies, pension plans, endowments, foundations and others include:
- Preservation of capital
- Low capacity for volatility
- Long duration profile based on liability stream
- High total return requirements
- Current income requirements
- Asset class diversification
- Regulatory oversight constraining risky asset mix (e.g., risk-based capital rules)
The Julex Dynamic Alpha Strategies are highly flexible and customizable to meet many needs of institutional investors, including within the specialized liability-driven investment area. Customized combinations of the Julex strategies allow the ability to “dial-in” the modeled level of risk, return, income, capital usage, etc. For example, “dialing-in” a larger combination of the Dynamic Income Strategy would incur less risk-based capital since that strategy includes the AGG ETF that qualifies as high quality bonds from a capital usage perspective. The Julex strategies can used as a portion of the portfolio allocation as shown in the following table.
|Julex Dynamic Alpha Strategy||Portion of the Portfolio|
|Dynamic Focus||US or World Equities|
|Dynamic Factor||US Equities|
|Dynamic Emerging Market||Emergng Market Equties|
|Dynamic Income||US Bonds|
|Dynamic Real Asset||US or Global Real Assets or Inflation Protection Securities|
|Dynamic Diversified or customized portfolio||Alternative Investments|
To learn more about our products, please visit Product Page.Dynamic Alpha Return/Risk Profile and Correlation