You don't have to take on extra risk for the sake of tracking a traditional benchmark. Neither should you sacrifice return opportunities in order to manage risk. The sweet spot is a more agile strategy that balances return and risk.
Olivia Engel, Head of Active Quantitative Strategy is asked how her approach to creating portfolios - one that is benchmark-unaware, nimble and explicitly manages risk - can deliver a more balanced outcome and stronger risk adjusted returns.
The State Street Australian Equity Fund selects stocks based only on fundamentals and risk characteristics, not their relative weight in the Index. Focused on efficiently finding growth opportunities where risk is appropriately compensated with expected return, the fund positions investors to gain from the upside and be cushioned from the downside.
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