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EQUITY FACTOR INVESTING
PHILOSOPHY
Academic research has shown that the behavior of financial markets can be decomposed according to the characteristics of equity securities such as behavior over time, market capitalization, volatility, valuation, etc.
These characteristics:
- Allow for risk premia captureto generate returns
- Are complementary to one another throughout the economic cycle
Seeyond's Equity Factor Investing strategy seeks to efficiently combine these characteristics with respect to a predefined relative risk budget (tracking error) compared with a benchmark index, with the objective of outperforming the benchmark markets over the long term.
KEY POINTS
A transparent investment solution
Performance factors are selected according to simple criteria: their ability to outperform over time compared with traditional indices and their complementary behavior throughout the cycle
Adaptable
An equity investment solution that adapts to different market configurations
Modular
A strategy that can be deployed over several geographical areas and adapted to different relative risk budgets
OUR APPROACH
Investment strategy
The Equity Factor Investing strategy defines an exposure to equity markets through an active allocation based on single stock characteristics. The complementary nature of these characteristics in the portfolio construction aims to minimize risk by diversifying the portfolio allocation on favored themes depending on the position in the economic cycle (growth, crisis, rebound).
Objective
The objective of the strategy is to outperform its benchmark index over a recommended minimum investment period of 5 years, within a predefined annual ex-ante tracking-error target.
Main risks: capital loss, equity market risk (including small and medium caps), currency risk, discretionary management
Investment Universe
The strategy has been implemented in the following geographical areas :
OUR EXPERTS
Nicolas JUST
Deputy Chief Executive Officer - Chief Investment Officer
- Head of Smart Beta - Natixis Asset Management (2012)
- Head of core equity management - Natixis Asset Management (2010)
- Head of model-driven management Europe and Japan - Natixis Asset Management (2008)
- Sell-side equity analyst – Exane BNP Paribas (2002)
- Derivatives trader – Société Générale, New York (1994)
Ruixing CAI
Portfolio Manager
- Ruixing Cai started her career in 2016 at BPCE group where she worked as a Risk Analyst. In 2019, she joined Seeyond as a Portfolio Manager.
Pierre SAVARZEIX
Portfolio Manager
- Pierre Savarzeix began his career in 1999 as a Quantitative Equity Analyst at Crédit Lyonnais AM. Since 2012, Pierre Savarzeix is a Portfolio Manager in Seeyond’s Equity investment team.
Stéphanie NOEL
Portfolio Manager - Implementation
- Stéphanie Noël began her career in 2002 at Axa IM as a Middle Office Manager. In 2012, she became a Portfolio Manager at Natixis AM. Since 2018, Stephanie Noël is a Portfolio Manager in Seeyond’s implementation team.
Sébastien GUERIN
Portfolio Manager - Implementation
- Sébastien Guerin began his career in 1989 as an Equity Trader, then Portfolio Manager, in 2002. He entered Seeyond research team in 2014 as a Global Analyst.Since 2018, Sébastien is a Portfolio Manager within Seeyond Implementation team.