📝 Target Volatility Funds See Steady Inflows This Year: Barclays

Target Volatility Funds have seen steady inflows YTD as volatility has remained subdued as S&P realized volatility nears post-pandemic lows. Based on our analysis of the filings of Variable Annuity issuers, we estimate that currently total assets in Volatility Target funds are around $200bn. In conjunction with the current realized environment, we expect the allocation to equities to be close to 60% (double from 30% in 2022 lows), which translates to approximately $40bn in YTD inflows. Incidentally, this breaks the longest period Target Vol Funds have ever been under-invested (less than two-thirds in equities

- Barclays