Our Alpha Plus strategy approach provide superior implementation of any smart beta index, as well delivering better results relative to other active strategies. The combination of stock selection skills with sophisticated risk management in portfolio construction provides the optimal way to capture the strategy factor risk premium with superior return outcomes.
This approach results in “smarter portfolios” – we aim to deliver “Alpha plus” smart beta. Smart beta alone makes dumb portfolios.
We offer this as a model portfolio service where the client implements the strategy through their own portfolio management infrastructure and trading relationships.
Global Alpha Plus (GAP)
GAP is a value-oriented strategy which explicitly seeks to capture the Beta(s) of the MSCI World Value Weighted index, and to also add alpha through the superior VMQ based stock selection. We aim to replicate the factor Betas and apply a small ‘risk budget’ to choose in the portfolio construction process the stocks we expect to outperform that generates ‘Alpha Plus’ the factor Betas. GAP holds 175-200 names and is rebalanced to the index on an ‘alpha update’, not calendar basis.
Asia Small Cap Alpha Plus (ASAP)
ASAP is a diversified portfolio of growing Asia focused companies built through our VMQ stock selection process. Containing around 200 names, it is optimised to explicitly capture the Beta of the MSCI All Country Far East Small Cap Value index. Similar to GAP, we aim to replicate the factor Betas and emphasise stock specific risk which we believe is associated with excess returns or alpha.
API can also implement the Alpha Plus approach to your preferred smart beta index. Contact us to discuss further.