Investment Approach

The Fund aims to achieve long-term capital growth with a low tolerance for capital loss. The Fund will use a combination of ‘factor’ based investment styles using quantitative (i.e. mathematical or statistical) models in order to achieve a systematic (i.e. rule based) approach to stock selection. These factor based investment styles include ‘macro’ and ‘style’ factors. Macro factors are based on fundamental research and analysis of global macroeconomic factors including economic growth (focusing on the financial health of the global economy and seeking returns through exposure to the risk of economic uncertainty), real rates (focusing on current central bank policy and seeking returns through exposure to interest rate movements) and inflation (focusing on inflation expectations and seeking returns through exposure to price changes). Style factors include ‘value’ (focusing on investments that appear relatively cheap with the aim of outperformance relative to expensive assets), ‘momentum’ (focusing on investments with relatively strong medium term performance with the aim of benefitting from an asset’s recent relative performance continuing in the short term), ‘carry’ (focusing on higher-yielding investments with the aim of benefitting from the higher returns of these assets relative to lower-yielding assets) and ‘defensive’ (focusing on investments with low-risk characteristics with the aim of benefitting from the tendency for lower risk, higher quality assets to generate higher risk-adjusted returns than higher risk, lower quality assets). The Fund uses a risk based asset allocation methodology that ensures diversification across the various investment strategies, allocating risk towards those strategies that provide the most attractive risk and return characteristics, as well as those that demonstrate better relative performance in periods of market stress.