Fund-Level Hedging
Fund Finance
Innovative, rules-based investment solutions designed to help portfolios protect capital, generate alpha and adapt across changing market environments.
Long-term inflation protection is still within reach.
Canada stopped issuing Real Return Bonds (RRBs) for long-term inflation protection in 2022. Validus now replicates that real yield exposure through a portfolio combining nominal bonds with a custom CPI hedge.
Pension funds and insurance companies run leaner, more scalable operations with tailored advisory, proprietary investment solutions, and flexible outsourcing built around their mandates.
Single and multi-family offices protect and grow wealth with access to institutional-caliber investment opportunities once reserved for the largest allocators.
Asset managers sharpen existing products and bring new ones to market integrating tailored Validus solutions- whether through Validus Advisory or strategic licensing.
RIAS grow their practice and advise more efficiently with access to institutional-grade strategies tailored to their clients’ diverse needs.
Enhanced passive exposure to S&P 500. Overlay of the PUTD Alpha strategy on a core passive S&P 500 exposure. Improve performance while adhering to a defined tracking error budget.
Smoother equity with active risk control. This strategy uses an unlevered and liquid option strategy to mimic exposure to the S&P 500 index with improved risk characteristics.
Targeted exposure to developed markets. Dynamically adjusts EFA Index exposure based on momentum signals to enhance long-term risk/reward outcomes.
Targeted exposure to emerging markets. Dynamically adjusts EEM Index exposure based on momentum signals to enhance long-term risk/reward outcomes.
Targeted exposure to the UK equity market. Dynamically adjusts MSCI UK Index exposure based on momentum signals to enhance long-term risk/reward outcomes.
Smart beta access to Japanese equities Intro: Dynamically adjusts MSCI Japan Index exposure based on momentum signals to enhance long-term risk/reward outcomes.
Next-generation overlay on developed market equities. Applies a dynamic call-writing overlay on a long EFA exposure to generate yield while maintaining equity participation.
Next-generation overlay on emerging market equities. Dynamically overlays call-writing on EEM exposure to enhance yield while maintaining market participation.
An option-based long exposure to S&P500. An option-based long exposure to S&P500. Uses a systematic put spread structure to gain S&P 500 exposure with improved downside protection and risk-adjusted characteristics.
Volatility-driven alpha in U.S. equity markets . The PUTD Alpha Strategy aims to capture the enhanced characteristics of the PUTD Index relative to the S&P 500.
Diversified return from volatility markets. Systematically captures volatility premium through VIX puts while maintaining defined downside risk.
Sourcing alpha in the VIX complex. Systematically captures VIX futures carry using a rules-based approach with controlled downside risk.
Consistent downside protection for U.S. equities. Systematically buys S&P 500 puts to help reduce drawdowns and protect portfolios during market stress.
Tactical protection through volatility spikes. Implements a rules-based VIX call strategy to help offset equity losses in stressed market conditions.
Real yield strategy for long-term inflation coverage. With the Government of Canada no longer issuing Real Return Bonds (RRBs). Real yield exposure through a portfolio combining nominal bonds with a custom CPI hedge
Protecting purchasing power against unexpected inflation. Headline inflation can spike faster than portfolios can react. Validus targets short-term CPI sensitivity with a dynamic, commodity-linked hedge designed to respond in real time.
Optimizing exposure while preserving core holdings. Beta Management solutions use liquid derivatives to enhance portfolio management through optimized cash management and operational efficiency, while keeping core investments firmly in place.
Not every portfolio fits a standard framework. If your mandate has specific objectives, constraints or exposures, we work with you to design a solution built around your needs.
At Validus, we develop investment strategies designed to meet real-world portfolio objectives across changing market environments.
Strategies spanning smart beta, alpha generation, equity protection and inflation, designed to address specific portfolio objectives across a range of market conditions.
Solutions delivered through dedicated funds, managed accounts and licensing structures, adaptable to the requirements of institutional investors, family offices and asset managers.
Rules-based, liquid and transparent strategies built for practical implementation, designed to complement existing allocations rather than replace them. Choose Systematic (rule-based) Strategies, Macro Thematic Strategies, Derivative Overlays, or Bespoke Strategies.
Inflation protection strategies include the use of Inflation Linked Bonds (ILB) — which have been discontinued in Canada — exposure to commodities, alternative assets or securities (TIPS). These tools help maintain purchasing power by linking returns to inflation indicators like CPI. Discover Validus’ innovative strategy aiming to enhance the yield of a portfolio of nominal bonds to help protect investors’ purchasing power.
Alpha strategies seek to outperform the market by actively capturing various sources of market inefficiencies. Some proven sources of alpha are momentum (i.e. trend), carry or volatility risk premia strategies. Alpha strategies exhibit low or no correlation to traditional assets. Discover Validus’ set of strategies geared towards capturing various sources of alpha.
Smart beta strategies aim to implement active strategies on a core benchmark exposure to outperform the benchmark over the long term. At Validus, we offer a range of smart beta solutions that are rules-based, liquid, transparent and cost-efficient.
Downside protection strategies use options overlays, derivatives-based hedges or tactical asset allocation and rebalancing to limit losses during market downturns. These approaches help investors stay invested while managing drawdowns. Investors tend to not use these strategies based on the perception that they will ‘cost’ them performance. However, this is a misperception. Having the ability to deploy capital during periods of market stress when other investors are dealing with important drawdowns can provide access to many attractive investment opportunities. Discover Validus’ rule-based strategies that help manage downside risk in equity markets.
In volatile environments, option-based strategies, dynamic asset allocation, momentum investing and other types of thematic strategies can provide both resilience and upside. Combining alpha generation with risk management helps navigate unpredictable conditions. Not sure which approach fits your portfolio? We’re here to help. Get in touch to explore the right strategy for you.
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