Our Philosophy
The aim of Perpetual Quantitative Investments (QI) is to exploit stock opportunities with a controlled-risk, style-neutral product that is able to consistently add small amounts of value in a disciplined manner. To achieve this, we believe in using the market knowledge of a highly credible equities team combined with best practice in global quantitative techniques.
Perpetual’s quantitative investment philosophy is based on:
- Identifying inefficiencies through market insight
- Exploiting existing opportunities using a systematic, disciplined quantitative approach
- Reinforcing and applying an investment signal to a relevant industry sector (rather than across the entire market) to capture additional value (or excess returns above the benchmark).
Our Process
Perpetual Quantitative Investments (QI) is a manufacturer of investment returns within a risk-controlled framework. Our investment objective is to deliver better than benchmark returns while maintaining a pre-determined risk level.
Our portfolios are designed to achieve:
- Controlled risk (targeted tracking errors which can be dialled up or down for discrete mandates)
- Style neutral (no unintentional bets)
- Excess returns derived from active stock positions
QI has a “factor tilt” approach, where stock positions are taken to emphasise or deemphasise those factors that we believe will outperform or underperform the market. We might, for example, tilt towards stocks with positive earnings revisions, (or, alternatively, against stocks with negative earnings revisions), or tilt towards stocks with high price momentum (against low price momentum stocks).
We follow a sensible and intuitive approach to the management of the portfolio. For example, we anticipate changes to the benchmark and handle them proactively. To this end the universe of investable stocks includes not only stocks that are presently in the benchmark but also stocks that have a high probability of being in the benchmark over the next six months.
Access Fund Overviews using the below links:
- Alpha TE2 Fund
- Perpetual WealthFocus Investments Quantitative Investments Alpha Share
- Perpetual WealthFocus Super Quantitative Investments Alpha Share
- Perpetual WealthFocus Allocated Pension Quantitative Investments Alpha Share
- Perpetual WealthFocus Term Allocated Pension Quantitative Investments Alpha Share
- Perpetual's QI Long Short Fund
For further information please contact piresearch@perpetual.com.au
