UBS collaborates with Nobel laureate Robert Engle on Investing.com’s new volatility-controlled index series

NEW YORK–(BUSINESS WIRE)–UBS today announced its collaboration with Engle Volatility Consulting LLC (Engle Consulting), whose head of research is Nobel Prize winner Dr. Robert F. Engle, on the methodology for a series of controlled volatility indices. The series uses systematic, rules-based investment strategies that aim to provide increased exposure to a variety of underlying assets using a new forward-looking intraday volatility forecasting methodology developed with Dr. English.

The first of a series of indices will aim to improve the risk and return profiles of major benchmark equity indices to meet the growing demand for retirement products and help investors achieve their financial goals.

Ghali El-Boukfaoui, head of insurance sales at investment bank UBS, said: We are excited to work with Dr. Engle in order to bring this innovation to the pension market. Volatility control methodologies have, for the longest time, been neglected from an innovation standpoint, and we believe that a good volatility forecasting method can lead to improved performance.

El-Boukfaoui adds: Dr. Engle has spent his career solving the problem of predicting volatility as an indicator for price action, and the goal of our collaboration is to bring innovation that positively affects the financial outcome of investors.

The core of a good volatility control mechanism is a good volatility forecast, said dr. Robert Engle. These indices are designed to provide investors with exposure to benchmarks with a competitive risk-return profile by applying innovative intraday volatility control based on a volatility forecasting model.

The model is based on the research of dr. Englea and aims to create a more reactive intraday allocation mechanism that can quickly adapt to changing market conditions and more accurately predict volatility using a variation of the ARCH model.

For more information, visit https://indices.ubs.com/engle

About UBS

UBS is a leading global asset manager and the leading universal bank in Switzerland. In addition, the firm offers diversified asset management solutions and focused investment banking functions. With the acquisition of Credit Suisse, UBS has assets under management of $5.7 trillion as of the fourth quarter of 2023. UBS supports its clients in achieving their financial goals through personalized advice, solutions and products. Headquartered in Zurich, Switzerland, the company operates in more than 50 markets worldwide. Shares of UBS Group AG (NYSE:) are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

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Engle Consulting is not an investment advisor, and does not guarantee the accuracy or completeness of any index in the range of indices described herein or any data or methodology included therein or upon which it is based. The Indices are not sponsored, endorsed, sold or promoted by Engle Consulting or Robert F. Engle. Engle Consulting and Robert F. Engle work will not make any representations or warranties, express or implied, to any financial institution, investor or counterparty to any index or to any member of the public as to the advisability of investing in securities generally or in any index.

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Source: UBS