Quant style

AMP Capital has developed a quant style of investing specifically designed for Australian market conditions.

Our quantitative approach to investing focuses on share price anomalies, drawn from a number of different investment styles and are combined with the aim of predicting future share price performances. These pricing anomalies are identified using a number of different investment styles (eg value, growth, price momentum, and earnings revisions).

Stock selection decisions are driven by a unique, proprietary, multi-factor, quantitative model – the Selection Plus Model. This
removes emotional biases from the decision making process. No ‘style bias’ toward growth or value means there is potential for significant returns within controlled risk parameters.

The power of our process is the ability to find pricing anomalies across a large number of stocks.

Active Quant Share Fund

Fund aim

The Fund applies a quant style to investing in shares listed on the Australian Stock Exchange.

Investment objective

Our aim is to provide high returns over the long-term while accepting high levels of volatility in returns. In seeking to achieve the investment objective, we aim to provide a total return, after costs and before tax, higher than the return from the benchmark on a rolling 12 months basis.

Benchmark

S&P/ASX 200 Accumulation Index.

Investment guidelines

The Fund may invest in:

• up to 10% in cash and fixed interest securities if these investments are seen to add value or assist in managing risk
• options, futures and other derivatives to reduce risk or gain exposure to physical investments, when we think it worthwhile
• financial products (for example managed funds and securities) offered by AMP Capital Investors or its associates.

It is not our intention to gear the Fund. The Fund may borrow to meet short-term liquidity needs.

Inception date

September 1995

Recommended investment timeframe

5-7 years

Risk Rating

High

Distributions

Quarterly and can be paid in cash or re-invested in the fund

Minimum investment

A$10 million

Buy/sell spread

Nil

Management expense ratio (MER)

0.7159%