Select Volatility

This page refers to the portfolio previously known as ‘Volatility Focus’.

Copia’s Select Volatility portfolio range is designed to target a clearly defined volatility objective, whilst maintaining exposure to assets with potential for real returns. In this portfolio range, capacity for loss is a key consideration of your client needs, and portfolio ‘drift’ is a key risk to your client outcomes. Select Volatility portfolios have been designed for your clients with medium-term investment horizons where capacity for loss and capital preservation is a primary consideration.

KEY POINTS

KEY INFO

YOUR CLIENT USE OF CAPITAL

An investment portfolio where capacity for loss is the primary consideration

OBJECTIVES

Defined by Risk-Return Expectations

ASSET ALLOCATION

Strategic (asset-based), Tactical realignments using the Copia Risk Barometer

UNDERLYING SECURITIES

Copia Screened ETFs

OPTIMISATION CONSTRAINTS

Min/Max Position, Turnover, Asset Range

COPIA FEE

0.30%

COPIA'S INVESTMENT APPROACH

Our investment process for the Select Volatility portfolios:

1. Set volatility targets

We have created ten portfolios to match target volatility ranges.

2. Screen for best ETFs

We use our ETF screener to identify the best ETFs for each asset class.

3. Tactical Asset Allocation

We use Copia’s Risk Barometer and take into consideration short term expected returns, volatilities and correlations from our Quant Model to adapt asset allocation.

4. Optimised Portfolio Construction

We construct the Select Volatility portfolios using the screened ETFs subject to consistent parameter constraints.

Why choose Select Volatility?

The Copia Select Volatility range provides investors with a portfolio constructed and managed using the same principles as those adopted by the world’s largest institutional investors. The range offers a choice of ten portfolios to match each of your clients’ risk preferences for medium-term investment horizons. Each portfolio has a dynamic asset allocation approach driven by our Quant Model expectations and optimised to target a volatility level for the portfolio as a whole. Portfolios are then constructed using Copia’s proprietary ETF screening process.

ASSET ALLOCATIONS

Shaded region in the above chart represents illustrative exposure to Equity and Risk assets (Equities
and Alternatives) within the portfolio.

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Evaluating Portfolio Strategy & Outcomes

Advisers can evaluate Copia Select Volatility portfolios’ outcomes by:

  • Verifying that historic annualised volatility is within target volatility ranges, and 
  • Evaluating historic annualised returns relative to inflation.

For historic data, we use 36-month data as a minimum measuring period. Advisers can also use Value at Risk (VaR) to obtain a snapshot of the potential downside risk over a period of a particular asset allocation at a particular time.

Outcome analysis as of 31 December 2021

Select Volatility - Outcome Analysis 31122021

For illustration only Returns based on Total return, assuming income is re-invested immediately and rebalanced on due dates.

 

For more information about the Copia Select Volatility range speak to one of our relationship managers by calling 0345 850 8880 or emailing us at [email protected]

Copia Capital Management

Fleet House, 8-12 New Bridge Street, EC4V 6AL

Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

© 2021 Copia Capital

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