ABSTRACT
We take an active approach to portfolio construction and risk management, which is enhanced by a quantitative discipline. In our process, we use quantitative models as the first step i n developing a view on sectors, markets, styles, and, ultimately, on shares. We exercise judgment i n terms of deciding the appropriate inputs for our models and, finally, i n terms of the critical quality leadership decision. The last step is to form a v iew on the impact of medium-term reference-currency movements on equity performance. Here too, we take an active approach about the decision to hedge reference-currency strength, and we use quantitative-valuation tools to make the process easier and more disciplined.
