Outperform and Adapt

The Johnson Enhanced Index combines the benefits of both active management and index investing. We believe that a passive equity approach combined with an actively managed fixed income portfolio can consistently outperform the market over time with low volatility. The active management provides benefits of returns that are able to outperform the index and the ability to adapt to changing market conditions. Additionally, the portfolio benefits from the index investing approach of benchmark correlation, lower volatility and lower fees.

Our primary objective is to outperform the S&P 500 Index with low tracking error and comparable volatility by replicating the Large Cap Equity market using Index Futures, combined with short duration investment grade Fixed Income securities.

Johnson Enhanced Index believes our disciplined process can provide investors equity index-like price volatility while exceeding the total return of the index over all time periods. The objective is to generate consistent excess returns versus the S&P 500 with low tracking error.
Our process combines a passive equity approach with an actively managed fixed income portfolio. Futures contracts track equity index returns, less an implied cost-of-carry. A short duration bond portfolio is expected to consistently outperformed cost-of-carry over time, providing the opportunity for alpha.
The S&P 500 Index is replicated using futures contracts. Cash not held on margin is invested in an actively managed bond portfolio designed to outperform cost-of-carry, generating alpha for the combined portfolio.
Fact Sheet


All data as of 3/31/2024.

Index Comparison

Index Comparison
Source: Table Source: eVestment. Trailing 10 years as of 03/31/2024. Active is defined as the median of the eVestment Large Cap Equity pooled vehicles. Passive is the median of the eVestment Passive S&P 500 Equity pooled vehicles Universe. All comparisons are net-of-fees.