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  • Our Philosophy & Capability

    We believe that markets are not perfectly efficient, meaning that companies are mispriced relative to unknown fair values. As a result of this mispricing, there is a small number of systematic factors that can lead to excess returns above that of the market over a long time horizon, including:

    • ● Value (cheap stocks outperforming expensive stocks)
    • ● Momentum (stocks with strong price momentum outperforming stocks with low price momentum), and
    • ● Quality (low quality stocks underperforming).

    We use systematic equity strategies to target these factors, with the aim of outperforming traditional market cap weighted indices. These strategies may vary from rules-based, non-price-weighted methodologies such as the Fundamental Index or Equal Weighting, to customised solutions and more active quantitative strategies developed by Realindex which may target exposure to a combination of factors such as value, quality and momentum. Furthermore, we believe that portfolio construction is key in being able to combine these return drivers with risk controls relative to overall portfolio objectives.

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