Systematic Equity
Human led, data driven and research tested: Only our best investment ideas survive the rigor of our analysis.
Our Approach
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 Systematic Equity solutions utilise a systematic stock selection process, incorporating a range of sophisticated and proprietary stock selection signals, to build a portfolio of securities that is expected to produce superior risk adjusted returns compared with the cap-weighted index.
Our Offering
Alpha generation is achieved through the systematic implementation of our multi-factor stock selection model or alpha model. Innovation is at our core and, over the three plus decades of managing systematic active strategies, our alpha model has constantly evolved through a rigorous research process and an intentional pace of innovation, capturing our best ideas with the goal of staying one step ahead.
Our Philosophy
Markets are not efficient due to behavioral biases and limits to arbitrage — leading to opportunities for excess return
Our insights are best applied to a wide investment universe with a robust and systematic investment process
A strong emphasis on economic rationale, advanced data and technology, vetted by rigorous research is critical to ensure successful outcomes
Our Investment Process
- Academically researched, empirically valid proprietary multi-factor sub-set (core factors)
- Generate expected excess return forecasts 23,000+ stocks daily
- Efficient Translation of model
- Strategy constraints
- Client-specific constraints
- Oversight and validation of trade lists
- Optimize trade execution
- Skillfully implement trades after assessing turnover and liquidity characteristics.
- Continually Monitor portfolio
Source: SSGA. The information contained above is for illustrative purposes only.
Our Latest Thinking
Contact Us
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 Systematic Equity.