StockNews.AI
UBS
StockNews.AI
215 days

UBS Collaborates with Nobel Laureate Robert Engle on a New Volatility Controlled Index Series

1. UBS partners with Dr. Engle for innovative volatility indices. 2. New indices aim to enhance risk-return profiles for retirement products. 3. The methodology forecasts volatility for better market adaptability. 4. UBS has $5.7 trillion assets following Credit Suisse acquisition. 5. The collaboration addresses demand for improved investment options.

8m saved
Insight
Article

FAQ

Why Bullish?

UBS's collaboration with a Nobel laureate enhances credibility and market position, similar to past successful projects.

How important is it?

The partnership with Dr. Engle is significant for UBS's product offerings and market approach.

Why Long Term?

The new volatility indices may take time to gain traction but have long-term potential.

Related Companies

UBSCS
NEW YORK--(BUSINESS WIRE)--UBS announced today its collaboration with Engle Volatility Consulting LLC (“Engle Consulting”), the research principal of which is Nobel Laureate Dr. Robert F. Engle, on a methodology for a series of volatility controlled indices. The series uses rules-based systematic investment strategies that aim to provide enhanced exposure to various underlying assets using a novel forward-looking intraday volatility forecasting methodology developed with Dr. Engle. The first of the index series will aim at improving the risk-return profile of major benchmark equity indices in order to serve the increasing demand in retirement products and help investors achieve their financial goals. Ghali El-Boukfaoui, Head of Insurance Sales at UBS Investment Bank, said: “We are excited to collaborate with Dr. Engle to bring this innovation to the retirement market. Volatility control methodologies have, for the longest time, been overlooked from an innovation standpoint and we take the view that a good volatility forecasting method can lead to enhanced performance.” El-Boukfaoui adds: “Dr. Engle has spent his career solving for the volatility forecasting problem as an indicator for price actions, and the goal of our collaboration is to bring an innovation that positively impacts the financial outcome of investors.” “The heart of a good volatility-control mechanism is a good forecast of volatility,” said Dr. Robert Engle. These indices are designed to give investors exposure to benchmarks with a competitive risk-return profile by applying an innovative forward-looking intraday volatility control based on a volatility forecasting model. The model is based on Dr. Engle's research and aims at producing a more reactive intraday allocation mechanism that can rapidly adapt to changing market conditions and more accurately predict volatility by using a variation of the ARCH model. For more information please 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 company offers diversified wealth 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 around the globe. UBS Group AG shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE). Disclosures This material is authorized for distribution only when accompanied or preceded by a prospectus and an applicable product brochure for the annuities being offered. The prospectus contains features, benefits, risks, fees, and other information regarding the registered index-linked annuity contract, which should be considered carefully before investing. You should read the prospectus carefully before investing money. This material is for distribution only under such circumstances as may be permitted by applicable law. It has not been prepared with regard to the specific investment objectives, financial situation or particular needs of any specific recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments or to participate in any particular trading strategy. Options, derivative products and futures are not suitable for all investors, and trading in these instruments is considered risky. The recipient should not construe the contents of this material as legal, tax, accounting, regulatory, or other specialist or technical advice or services or investment advice or a personal recommendation. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this material. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein except with respect to information concerning UBS AG, its subsidiaries and affiliates ("UBS"), nor is it intended to be a complete statement or summary of the securities markets or developments referred to in this material or a guarantee that the services described herein comply with all applicable laws, rules and regulations. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS as a result of using different assumptions and criteria. UBS is under no obligation to update or keep current the information contained herein, and past performance is not necessarily indicative of future results. UBS, its directors, officers, employees or clients may have or have had interest or long or short positions in the securities or other financial instruments referred to herein and may at any time make purchases and/or sales in them as principal or agent. UBS may act or have acted as market-maker in the securities or other financial instruments discussed in this material. Furthermore, UBS may have or have had a relationship with or may provide or have provided investment banking, capital markets and/or other financial services to the relevant companies. Neither UBS nor any of its directors, officers, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this material or reliance upon any information contained herein. Additional information may be made available upon request. Not all products or services described herein are available in all jurisdictions and clients wishing to effect transactions should contact their local sales representative for further information and availability. © UBS 2025. All rights reserved. Engle Consulting is not an investment adviser, does not guarantee the accuracy and completeness of any index in the index series described herein or any data or methodology either 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 do not make any representation or warranty, express or implied, to any financial institution, investor of or counterparties to any index or to any member of the public regarding the advisability of investing in securities generally or in any of the indices.

Related News