Quantitative
InvestmentsOur rules-based, research-driven investment approach
is objectively applied across our quantitative, indexation,
smart-beta, absolute return, and Shari’ah-compliant solutions.
       institutional our capabilities quantitative investments

      Quantitative Investments

      Disciplined, systematic portfolio construction processes and rigorous risk analysis underpin our pursuit of superior long-term returns. Our unique skills set and proprietary investment models enable us to analyse large volumes of data. Within our active equity offerings, this gives us insight into the factors driving market returns, helps remove behavioural biases and produces returns generally uncorrelated to other active offerings. Our systematic approach is also successfully applied to our indexation solutions to reduce tracking errors and benchmark return differentials.


      Indexation

      Solutions that deliver returns in line with the benchmark and at a much lower cost than traditional active portfolios

      Indexation      Smart Beta

      Indexation strategies that seek to add value over market capitalisation indices

      Smart Beta      Active Equity

      Actively managed quantitative strategies that exploit market inefficiencies to generate alpha

      Active Equity      Absolute Return

      Solutions targeting defined risk and returns outcomes, regardless of market conditions

      Absolute Return      Shari'ah

      Solutions that adhere to Islamic investment principles

      Shariah

      Integrating ESG Factors

      Generating the best possible returns for our clients is behind every decision we take. As such, we incorporate environmental, social and governance factors into our investment process in the same way as we do other potential risk factors. While our actively managed solutions use different approaches to generating outperformance, ESG factors are deeply embedded into these portfolios’ rigorous risk management approaches – with all stocks weighted according to the perceived ESG risks and opportunities. Similarly, our Shari’ah portfolios incorporate multiple ESG factors into their share screening process. The global equity component of these portfolios further draws from a range of MSCI ESG ratings and, as such, is strongly biased towards companies with superior ESG profiles.

      Our case studies show that tilting a portfolio to a higher ESG score, in aggregate, relative to the benchmark creates a higher quality portfolio.

      We also take an active ownership approach across these solutions, which includes proxy voting and company engagements to proactively drive change and long-term sustainable outcomes. Our dedicated Responsible Investment team advise us on appropriate courses of action.

      We were the first South African manager to launch a number of ESG index funds, and are the only SA index manager with access to a dedicated RI team. In respect of our indexation funds with no specific ESG overlay, these portfolios still have the benefit of listed equity stewardship, which includes proxy voting at company meetings and engagement with company management. Being invested in a tracker fund does not mean the absence of active ownership. The ESG screening for our global ESG index strategies is done by the MSCI. These strategies also benefit from listed equity stewardship, which is conducted by Russell Investment Company (RIC), a seasoned sub-advisor to Old Mutual Investment Group. RIC vote all their proxies in accordance with their proxy voting guidelines, which are aligned to our listed equity stewardship guidelines. Our Case Studies