Bruce Apted, Vice President and Head of Active Quantitative Equity (AQE) Portfolio Management in Australia and Adhi Mallik, Vice President and Portfolio Strategist for AQE at State Street Global Advisors, discuss their research on upside and downside capture in equity investing through the lens of what we call an “80/60” strategy, and how these insights are implemented for clients through State Street’s unique approach to defensive equities.
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 Active Equity solutions utilise a systematic stock selection process, incorporating a range of security evaluation measures, to select a portfolio of securities that is expected to produce superior risk adjusted returns compared with the cap-weighted index.
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.
How does the AQE team convert their investment intuitions into an insight worthy of a place in their stock-selection model?
Chief Investment Officer, Global AQE
Toby Warburton, CFA, Ph.D.
Co-Head of Portfolio Management, Active Quantitative Equity
Senior Portfolio Manager, Active Quantitative Equity
Head of Portfolio Management – Australia, Active Quantitative Equity
For more than 30 years, research and innovation have been at the core of our efforts to deliver outperformance for our clients.
Contact your State Street Global Advisors relationship manager, or email us to learn how to invest in AQE.