Equity

Global Equity Income Strategy

The strategy pursues long-term capital appreciation and aims to deliver positive excess returns relative to the Russell 2000 Index® by using a disciplined “active quant” approach that combines systematic quantitative modeling with qualitative validation.

Products offered
  • Separate Account
    • Global Equity Income

Competitive advantages

Active approach

The team’s active approach to systematic factor-based investing aims to generate alpha for their clients superior to passive approaches.

Cutting edge but transparent portfolios

Clients benefit from the latest cutting-edge techniques with full transparency into the drivers of risk and return in their portfolios.

Continuous innovation

While founded on decades of research, continuous innovation is core to the team’s fundamental beliefs.

Investment approach

An active approach to systematic factor-based investing

A fundamental approach, systematically implemented

The team’s approach is grounded in fundamental insights that are implemented systematically, resulting in intuitive portfolios.

Dynamic approach to factor selection

Thoughtful factor definitions combined with a dynamic modeling framework enable flexibility to adapt to changing market conditions.

Multi-dimensional risk management

The team maintains an intense focus on managing risk models and tools to effectively manage risk and control for unintended exposures.

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PM perspective

PM Perspective: Global Equity Income

Watch Wai Lee, senior portfolio manager for the Multi-Asset Solutions team, discuss the team’s focus areas for 2025, including higher rates for longer, what’s next in the AI space, and improving market breadth.

Transcript

Wai Lee: To continue to deliver income, capital growth, and balanced risks, a few focus areas for us in 2025 include first, higher rates for longer. While long rates have moved up since the easing cycle started, expectations have moderated to only two cuts with the Fed funds rate expected to drop to 4% by year end. Historically, this kind of interest rate environment has been good for active managers amid increased volatility and dispersion in both company and factor performance. While sticking to our investment process of identifying fundamentally attractive companies, we’ll be watching out for rate sensitive companies and heightened volatility, which can also be constructive to our options overlay strategy. Second, next in the AI space, we expect AI to remain a hot topic for 2025. But unlike many income strategies, we can invest up to 10% of our portfolio in non-dividend paying companies, which includes AI-related stocks and this boosts our ability to benefit from this theme. Building on our success in identifying the AI enablers, we will spread our alpha net to catch the AI adopters, as well. Third, improving market breadth. Market breadth has become scarce as fundamentals unfolded from U.S. equity domination to cap weighted versus equal weighted and growth versus value. We managed to outperform during intensifying market concentration through 2024 and we welcome early signs of improving breadth as a tailwind for active managers.

Composite performance

Average annual returns

Average annual returns

(as of 12/31/2024)
1/1/2013
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Composite (Gross)
-0.63
0.68
20.84
20.84
7.34
9.81
9.08
10.31
Composite (Net)
-0.68
0.54
20.18
20.18
6.68
9.11
8.35
9.57
Benchmark
-2.37
-0.99
17.49
17.49
5.44
10.06
9.23
9.87

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Calendar year

Calendar year

2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Composite (Gross)
20.84
21.46
-15.74
22.06
5.76
23.36
-9.39
24.58
10.02
-2.53
Composite (Net)
20.18
20.68
-16.30
21.27
5.02
22.51
-10.03
23.72
9.25
-3.20
Benchmark
17.49
22.20
-18.36
18.54
16.25
26.60
-9.41
23.97
7.86
-2.36

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Our team
Meet the investment team

The team believes company returns are predictable based on quantitative factors. They seek to systematically harvest these factors to generate alpha for their clients.

View Team
Justin

Justin Carr

Portfolio Manager
Vince

Vince Fioramonti

Portfolio Manager

Key risks

Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.

Equity securities risk: Equity securities fluctuate in value and price in response to factors specific to the issuer of the security, such as management performance, financial condition, and market demand for the issuer's products or services, as well as factors unrelated to the fundamental condition of the issuer, including general market, economic, and political conditions.

Small-cap securities risk: If a strategy invests in the securities of smaller-capitalization companies, these securities tend to be more volatile and less liquid than those of larger companies.

Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.

Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to Form ADV Part 2.

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