Equities

Systematic Equity

Human led, data driven and research tested: Only our best investment ideas survive the rigor of our analysis.

Our Approach

Investors today are focused not just on the return potential of their portfolios, but also on the potential for excess risk and cost, so we have designed active equity solutions that aim to put investors’ primary objectives at the centre of portfolio construction.

Our Systematic Equity solutions utilise a systematic stock selection process, incorporating a range of sophisticated and proprietary stock selection signals, to build a portfolio of securities that is expected to produce superior risk adjusted returns compared with the cap-weighted index.

Our Philosophy

Markets are not efficient due to behavioral biases and limits to arbitrage — leading to opportunities for excess return

Our insights are best applied to a wide investment universe with a robust and systematic investment process

A strong emphasis on economic rationale, advanced data and technology, vetted by rigorous research is critical to ensure successful outcomes

Our Investment Process

1

Factor Selecction

Academically researched, empirically valid proprietary multi-factor sub-set (core factors)
Generate expected excess return forecasts 23,000+ stocks daily

2

Portfolio Construction

Efficient Translation of model
Strategy constraints
Client-specific constraints

3

Implementation

Oversight and validation of trade lists
Optimize trade execution

4

Monitoring / Learning

Skillfully implement trades after assessing turnover and liquidity characteristics.
Continually Monitor portfolio

Source: SSGA. The information contained above is for illustrative purposes only.

Managing Currency in Global Portfolios

To Hedge or Not to Hedge?

Investing in a global fund with Australian dollars can seem daunting given the fluctuations in value against other currencies. We manage currency risk using SSGA’s Dynamic Strategic Hedging programme (“DSH”). Rather than choosing the Fund to be unhedged or fully hedged, we adjust the hedge ratio for each currency in the portfolio according to our medium to long-term assessment of that currency’s economic value relative to the Australian dollar.