Realindex – Systematic equity investment tailored to clients’ needs
- A systematic equity manager that manages strategies across market cap weighted indices, smart beta and active quantitative strategies
- Targets and customises factors such as Value, Quality and Momentum to construct portfolios that aim to provide excess returns above that of the market over a long time-horizon
- Experienced team with one of Australia's longest track records within smart beta and intelligent implementation
We provide efficient access to equities markets globally through our flexible, rules-based approach
Realindex adopts a systematic, rules-based investment approach that provides effective market exposure with the potential for lower turnover and costs than traditional active investment approaches. We use quantitative techniques that identify market anomalies, opportunities and risks to construct portfolios based on our clients’ specific investment needs over the long term.
The discipline and rigor of our process combined with the experience and diversity of our investment team allows us to tailor investment solutions to specific client needs and consistently implement these across a diverse range of equity universes including Australian large and small companies and overseas (developed and emerging markets).
Research and Insights
We uniquely offer the benefits of both passive and active management
Drawing on our internal research capability, we focus on continual refinement of our systematic investment processes. Acknowledging the advantages of traditional indexing, we look to overcome potential performance drags such as overweight allocations to expensive companies. Applying our research insights and the resources of a global asset management organisation, we aim to consistently develop smarter portfolio strategies, which use systematic rules to target specific factors, resulting in more effective market exposures across the risk/return spectrum.
Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.
ESG research has been and continues to be a strategic initiative for Realindex. As a manager of systematic investment strategies, the degree to which ESG considerations are incorporated varies across strategies but in all cases investment stewardship considerations are paramount. We have undertaken a significant amount of research on systematically integrating ESG considerations into portfolios using our extensive database of ESG data and metrics licensed from third parties. This research has been used to refine our investment process and develop customised client solutions.
Is Gross Profit superior to Sales as a measure of firm footprint? - looks at using Gross Profit instead of Sales as a measure, because Gross Profit accounts for margins.
Dividends and Capital Retention - With dividends being slashed in the wake of Covid-19, investors with a bias towards dividend yielding companies must assess the impact this has on return expectations.
Incorporating unrealised intangibles - Looks at incorporating Intangibles into Book Value, given the inconsistency of how intangibles are currently recognised in accounting standards.
'Sin Stocks, Two Studies' - explores two recent papers on what might often be excluded stocks from universes; what are known as "sin" stocks.
'Poor performance of Value' - an analysis of poor performance of Value in January 2020, and the impact on Realindex strategies.
Performance and Documents
Source: First Sentier Investors 2020
Performance returns are calculated net of management fees and transaction costs. Performance returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance.
Based in Sydney, our team is comprised of 13 investment professionals, including four CFA charterholders, with an average of 16 years' experience.