Description

The fund seeks to provide low-volatility take on a popular approach to international equity exposure, specifically companies domiciled in the developed countries of Europe, Australasia, and the Far East. Using historical standard deviation and correlation between stocks, the portfolio managers seek to optimize the portfolio by overweighting stocks expected to deliver less volatile returns and underweight or exclude more volatile stocks. As a result of this underweighting, the fund may not benefit from strong equity markets. Like other EAFE-based products it excludes exposure to Canada and the US, but in all, the fund provides a viable vehicle for low-volatility developed international exposure.