Volatility specialists Triple3 were recently awarded an equity overlay mandate from an industry super fund seeking further downside protection in its international equities portfolio. Read Article
In the news
Industry fund seeks volatility overlay mandate
Volatility spikes in bonds and oil markets
Investors may have just been looking in the wrong place however, with data from research house T3 Index showing that the expected volatility from US Treasuries and German Bunds has almost doubled with oil futures showing similar moves. Simon Ho, executive director of T3 Index, said the expected volatility of US and German bond yields had risen in lockstep with each other, as measured by a sharp rally in T3's YLDVOL Treasuries Index and its YLDVOL Bund Index. Read Article
Global Equity Advantage Fund added to Macquarie Wrap
The Grant Samuel Global Equity Advantage Fund has been added as an investment option on the Macquarie Wrap platform, 12 months after the fund was launched to provide investors with a risk managed global equities exposure and following its recent addition to the HUB24 platform. The fund combines the expertise of global equity specialist Epoch Investment Partners’ shareholder yield strategy and Triple3 Partners’ volatility management strategy. Epoch manages the underlying fund while Triple3 manages the options-based volatility overlay that seeks to mitigate the risk of capital loss in the fund. Read Article
Fiscal reform talk buoys equities but spooks bond markets
Mr Ho said the term structure of the Chicago Board of Exchange Volatilty Index, known as the VIX and the go-to gauge for equity market fear, pointed to concerns over the November 8 presidential election. The spread between one and two month futures is 11.4 per cent. This high spread represents the volatility being factored into November's election, he said. Read Article
ASX ends losing streak but doubts linger
Despite the session's relative calm, volatility in financial markets is likely to stay high until next Thursday, as investors nervously await the latest pronouncement from the Japanese and US central banks, Triple3 Partners portfolio manager Simon Ho said. Read Article
Triple 3 options aim to smooth out volatility
Volatility in investment markets is inevitable and investors need to protect themselves with options, particularly given the low-return environment, according to Triple 3 Partners. Speaking to financialobserver, Triple3 Partners chief executive officer Simon Ho said that effectively managing the downside risks of an equities portfolio could mean the difference between meeting investment objectives and falling behind. Read Article
Emerging manager outperforms market by 35 per cent
Meanwhile, the Triple 3 Volatile Advantage Fund said their success was underpinned "by trading volatility as an asset class". The firm's chief executive, Simon Ho, said their second point of difference was that they used options to "exclusively" create portfolios as they "deliver the greatest certainty around performance outcomes". Read Article
Bats Global Markets, T3 Index to Launch SPYIX Market Volatility Index
Bats Global Markets (Bats) and T3Index (T3) today announced the launch of the SPYIX (“the Spikes”), an index measuring expected 30-day volatility in the most actively traded security worldwide, the SPDR S&P 500 ETF (SPY).Read Article
Portfolio construction crucial amid volatility
Advisers need to pay more attention to portfolio construction and the role defensive assets play in assisting investors to weather volatile market conditions. In an interview with financialobserver, Triple3 Partners chief executive Simon Ho said as the market was experiencing episodic volatility, some advisers would need to revise their portfolio construction techniques. Read Article
Volatility no harbinger of doom
So what a contained Vix, both here and abroad is telling us, Ho explains, "is that there isn't a humongous amount of demand – and therefore panic – in the market for protection through the options market". Nor are traders betting on a pick up in volatility in the coming month. "If everybody was fretful that this was going to do something like 2008, then everybody would be buying options and volatility would be much higher."Read Article
ASX climbs above 5000 on Bank of Japan decision
The move by Japan's central bank took the markets completely by surprise, Triple 3 Partners director Simon Ho said. "Nobody was expecting them to contemplate negative rates, they were thinking about them for 20 years but they've never done anything about it." The move helped boost bourses around the region, including the Nikkei which rose almost 2 per cent in afternoon trade, but the "sugar rush" wore off during the afternoon.Read Article
Triple 3 rolls out volatility overlay
Volatility specialist Triple 3 has implemented an overlay that will protect investors against market downturns through the use of options. The overlay had been applied to the Epoch Global Equity Shareholder Yield (Unhedged) Fund and the combined strategy, called the Grant Samuel Global Equity Advantage Fund, was launched yesterday.Read Article
Triple3 Volatility Advantage Fund wins Lonsec Innovation award 2015
The Triple3 Volatility Advantage Fund has been named the Lonsec Innovation Award Winner for 2015 at the 13th annual SuperRatings Fund of the Year Awards.The Lonsec Awards highlight and recognise excellence in the industry. To choose the winners Lonsec uses a mix of qualitative and quantitative measures to identify high achieving funds managers and investment products that stand out from their industry peers. Read Article
The 'holy grail' of absolute return
"We’re up one per cent when [the S&P] goes up on average, and up four times as much when it goes down. "This is an absolute return strategy. We make money in up and down markets. But it's heavily weighted to when markets go down – it has a conditional negative correlation. "Every hedge fund in the world tells you that they’re negatively correlated but almost none of them have a profile that looks like that," he said.
Triple3 fund thrives on volatility
A downturn in quantitative easing will see volatility and risk premiums return to more normal levels, bringing both challenges and opportunities for investors, Triple3 Partners has said. “The winding back of quantitative easing in the United States heralds a significant shift,” Triple3 Partners chief investment officer Simon Ho told financialobserver.
Volatile year ahead, warns Triple3
The combination of quantitative easing, increases in global interest rates and falling oil prices are likely to combine to give investors a bumpy ride in 2015, says Triple3 Partners. Considerable volatility and asset movement is probable in the global market, according to Triple3 Partners chief investment officer Simon Ho.
NMP reveals aim, partners for next series
Connecting end investors with opportunities will be the key focus of the advisers, fund managers and research houses featured in the second season of No More Practice’s The Investment Series. <...> Triple3 Partners executive director Simon Ho, Australian Ethical portfolio manager Andy Gracey and Blue Sky Alternative Investments director Alex McNab would also feature. The series, scheduled to air mid-2015, is comprised of six episodes and is accredited by the FPA for continuing professional development points.
Taking advantage of volatility
Economic forecasters, sharemarket commentators and crystal ball gazers are busily predicting the directions that sharemarkets will take in 2015. Typically, views are divergent – some see markets reaching record highs, while others take a more pessimistic view. Whatever the direction, all seem to agree on one point – there is likely to be volatility along the way..
Triple3 added to Macquarie Wrap, others to follow
The Triple3 Volatility Advantage Fund has been added to Macquarie Wrap as the company looks to expand its listing onto other platforms over the next couple of months. The fund, distributed by GSFM, uses a volatility-focused strategy to capture alpha from highly liquid exchange-traded VIX options with the aim of generating long-term absolute returns for investors.
Triple3 brings volatility trading to bonds
Sydney-based research and investment firm Triple3 has developed an index that will track the volatility of fixed income securities. The launch of the index, YLDVOL, will allow institutional investors to trade volatility as if it was an asset class, much in the same way investors can trade the volatility of equities through the VIX index and its associated derivatives.