QIS
Quantitative Investment Strategies

Our Approach

Our index manufacturing goes beyond the traditional product development process. Thanks to our best-in-class analysis capabilities, we deep dive into the most relevant market trends and factors, assessing them from both quantitative and fundamental perspectives to identify their value drivers, and integrating them at the core of the methodology of our indices.

Additionally, BBVA QIS offers Tailor-made indices, developed jointly with clients to meet their specific investment requirements. These could be a combination of the existing indices or built completely from scratch.

Risk Control and Decrement indices

BBVA QIS has designed Risk Control and Decrement mechanisms that keeps volatility and dividend parameters at predetermined levels. This way, investors can protect themselves against high volatile market conditions and increase their participation in growth structured products.

Risk Control indices

Risk control indices are designed to keep volatility and dividend parameters at predetermined levels. They adjust dynamically their exposure to the underlying index (risky asset) depending on the market realised volatility level.

When volatility increases, the mechanism the underlying index by moving a portion of the portfolio allocation from the risky asset to cash.

Volatility target

Conversely, when volatility decreases, the mechanism increases the exposure to the underlying index by moving the cash allocation back to the risky asset.

Main advantages

• Dividend expectations do not affect product price
• They can increase participation in growth structured products
• Fully transparent, rules-based and simple
• They reduce the option price by predetermining the variables that most affect it