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Smart Beta


Key points

• Active approach to risk management
• Particular attention paid to portfolio implementation (original rebalancing policy, liquidity monitoring)
• Tried-and-tested investment strategies managed by an experienced team
• 5 portfolio managers


Expert opinion

Our pure approach to low volatility investing provides access to an additional risk factor that is often overlooked by investors, namely the volatility factor. Low volatility stocks perform as well as high volatility stocks while by definition taking on far lesser risk.
                                                 

Nicolas Just, CFA,
Head of Smart beta

The Smart beta team focuses on improving risk adjusted equity returns through a disciplined and a repeatable investment process. The team constructs both regional and global equity portfolios using risk as a primary input. The added value lies in the team’s ability to combine both a rigorous portfolio construction process while also managing risk actively over time.
For example, our Minimum variance strategies aim to construct a portfolio of stocks demonstrating low volatility and low correlation to each other while reducing significantly volatility over the long term.


Minimum variance strategy

Using a systematic approach to portfolio construction combined with active risk management, the fund managers seek to construct portfolios that offer greater stability over time. Greater stability implies reducing the impact of down markets while maintaining the ability to participate in up markets over the long term. Having refined the investment universe by removing stocks with an insufficient pricing history or liquidity and those with extreme specific risks, the team proceeds to construct a portfolio demonstrating inherently defensive qualities with the ability to adapt to structural market changes over time.