CBOE is working the 3-day Opal Public Funds Summit East in Rhode Island this week. About 250 financial professionals, including four state treasurers and dozens of trustees of public pension funds, have been in attendance. At the CBOE exhibit table, available educational literature includes fact sheets on CBOE benchmark indexes, on CBOE volatility indexes (including VXTYN), and research papers by Hewitt EnnisKnupp, Cambridge Associates, Asset Consulting Group, and other leading firms.
Mike Warsh, Director of Institutional Business Development at CBOE, spoke on a panel and noted that some previous speakers already discussed use of options, and that plan sponsors are exploring use of options through programs that engage in tail risk hedging or selling index options to enhance income. To help plan sponsors learn more about prudent use of options, Mike noted that CBOE (1) has created a number of benchmark indexes, including BXM, BXY, and PUT, (2) is delivering customized presentations on use of options to key plan sponsors, and (3) will host the 31st Annual Risk Management Conference (RMC) in California in March 2015.
Tim Barron, Senior Vice President and Chief Investment Officer, Segal RogersCasey said that plans probably still should be invested in equities, and that now could be a good time to explore the use of hedging tools because hedging costs are relatively low.
John Longo, Chief Investment Officer and Portfolio Manager, Acertus Capital, noted that his firm has funds that use options for portfolio management.
To read more about options-based benchmark indexes and related research papers, please visit www.cboe.com/benchmarks.