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Quotient Investors is recognized for its unique intra-industry investment approach. Quotient targets superior risk-adjusted returns across multiple U.S. products. Using a disciplined approach, Quotient incorporates value, growth, momentum, ESG and custom valuation models to identify the price drivers that are unique to each industry.

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Quotient provides US equity strategies for institutional investors that include Large Cap, Small Cap and MicroCap funds that are actively managed. The Large Cap strategies fully integrate Environmental, Social and Governance (ESG) criteria into the stock selection process.

Quotient Investors is the first manager selected by Strategic Investment Group for the CalPERS Manager Development Program II.

Quotient's experienced investment team comes from a major global institutional management firm and has track records dating back to 2000.



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Market Overview
Fourth Quarter 2016

The US markets ended the year on a strong note after a weak Q1. The S&P 500 gained +12%, the Russell 2000 jumped ahead by +21.3% and the Nasdaq advanced +7.5%. The divergent performance across capitalization sectors was highlighted by a small cap rally in Q4 when almost half of the year’s gains were made. The VIX volatility index traded generally below its historical average during the year, finishing at 11%. The Energy sector led the group rising +27.4% for the year while Health Care lagged with a drop of -2.7%. Small Cap Value was the best theme in 2016, rising +31.7%.

An improving US economy with stronger labor market and industrial production gave the Fed enough grounds for a 0.25% interest rate hike in December. Prospects of inflation are being echoed in higher bond yields, even as stable energy prices are tapering energy costs. The US dollar reached a 14-year high in Q4, heralding pressures on the US trade balance and revenues from US exporters. With a new administration in the White House, investors will be looking for new directions in fiscal policies. In Europe signs of growth are emerging even with the UK moving forward with its plans to exit the EU and Greece is negotiating bail-out terms.

Value themes proved dominant in 2016 as Momentum and Growth never really become established. After the elections in November, Small Cap stocks began to rally and dominated other investment themes.