The S&P/ASX 200 Risk Control Indices offer investors greater stability and control of the risk level of the widely followed S&P/ASX 200. By integrating a volatility control within the index rules, Standard & Poor’s provides a new level of innovation for investors looking to gain exposure to the Australian equity market while limiting their risk. Currently, S&P Indices offers four risk controlled versions of the S&P/ASX 200.

The S&P/ASX 200 Risk Control Indices utilize the existing S&P/ASX 200 methodology, plus an overlying mathematical algorithm designed to control the level of risk of the index by establishing a specific volatility target and dynamically adjusting the exposure to the S&P/ASX 200 based on its observed historic volatility.

S&P/ASX 200 Risk Control Indices include:

• S&P/ASX 200 Daily Risk Control 5% Index
• S&P/ASX 200 Daily Risk Control 10% Index
• S&P/ASX 200 Daily Risk Control 15% Index
• S&P/ASX 200 Monthly Risk Control 15% Index (Price Return)

  Index Name	Index Version	Risk Control Level	Maximum Leverage	Interest Rate	Volatility Calculation	Decay Factor Short-Term Volatility	Decay Factor Long-Term Volatility	Rebalance Frequency
  S&P/ASX 200 Daily Risk Control 5% Index	The S&P/ASX 200 Daily Risk Control 5% Index represents a portfolio consisting of the S&P/ASX 200 Index and a cash component accruing interest based on the RBA Overnight Cash Rate. The index is dynamically adjusted in order to target a 5% level of volatility. If the risk level reaches a threshold that is too high, the exposure to the index is decreased in order to maintain the target volatility. If the risk level is too low, then the index will employ leverage to maintain the targeted level of volatility. Realized historical volatility is calculated using a simple 100 day moving average and the index rebalanced daily.
  	Total Return	5%	150%	RBA Overnight Cash Rate	Simple 100 day moving avg.	N/A	N/A	Daily
  S&P/ASX 200 Daily Risk Control 10% Index	The S&P/ASX 200 Daily Risk Control 10% Index represents a portfolio consisting of the S&P/ASX 200 Index and a cash component accruing interest based on the RBA Overnight Cash Rate. The index is dynamically adjusted in order to target a 10% level of volatility. If the risk level reaches a threshold that is too high, the exposure to the index is decreased in order to maintain the target volatility. If the risk level is too low, then the index will employ leverage to maintain the targeted level of volatility. Realized historical volatility is calculated using a simple 100 day moving average and the index rebalanced daily.
  	Total Return	10%	150%	RBA Overnight Cash Rate	Simple 100 day moving avg.	N/A	N/A	Daily
  S&P/ASX 200 Daily Risk Control 15% Index	The S&P/ASX 200 Daily Risk Control 15% Index represents a portfolio consisting of the S&P/ASX 200 Index and a cash component accruing interest based on the RBA Overnight Cash Rate. The index is dynamically adjusted in order to target a 15% level of volatility. If the risk level reaches a threshold that is too high, the exposure to the index is decreased in order to maintain the target volatility. If the risk level is too low, then the index will employ leverage to maintain the targeted level of volatility. Realized historical volatility is calculated using a simple 100 day moving average and the index rebalanced daily.
  	Total Return	15%	150%	RBA Overnight Cash Rate	Simple 100 day moving avg.	N/A	N/A	Daily
  S&P/ASX 200 Monthly Risk Control 15% Index	The S&P/ASX 200 Monthly Risk Control 15% Index (Price Return) provides dynamic exposure to the S&P/ASX 200 Index (Price Return) in order to target a 15% level of volatility. If the risk level reaches a threshold that is too high, the exposure to the index is decreased in order to maintain the target volatility. If the risk level is too low, then the index will employ leverage to maintain the targeted level of volatility. Realized historical volatility is calculated using a simple 100 day moving average and the index rebalanced monthly
  	Price Return	15%	150%	None	Simple 100 day moving avg.	No Decay	No Decay	Monthly

  
  Index Governance and Policy
  This index is maintained by the S&P Index Committee, whose members include Standard & Poor’s economists and index analysts. It follows a set of published rules and policies that provide the transparent methodology used to maintain the index.

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