Northern Trust Asset Management - Australian Equity Multi-Factor Strategy

The Northern Trust Asset Management Australian Equity Multi-Factor Strategy invests in a diversified portfolio of undervalued, high-quality companies with positive momentum.

The strategy provides exposure to value, quality, momentum and low volatility factors in a systematic framework, on the basis that these factors are well-documented drivers of equity returns in the Australian broad cap market.

The strategy explicitly controls for risks unique to the Australian equity market including stock and sector concentration. Through a focus on the targeted factor exposures and avoidance of uncompensated risks, the strategy aims to achieve more consistent and persistent excess returns through time. It seeks to deliver excess returns relative to the S&P/ASX 300.

STRATEGY HIGHLIGHTS

• Seeks to deliver excess returns targeting compensated equity risk factors - value, quality, momentum and low volatility
• Applies a quantitative multi-factor model with end-to-end risk management
• Strict control of sector biases to improve factor efficiency
• Focuses on consistent, systematic, and transparent investment process