| Focus on Stock Selection | | Over 80% of the active risk in attributed to stock selection. Risk control minimizes active market risk, industry risk and style risk. |
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| Intra-Industry Model | | Stock selection is driven by Quotient's insights into the valuation of companies operating within an industry. In total, there is a unique valuation model for each of 56 industries in the US Market. |
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| Incorporate Growth and Value Factors | | The valuation models incorporate factors from multiple categories including value, growth, momentum, and custom valuation models. |
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| Risk Budgeting | | The targeted tracking error is distributed in the portfolio according to the strength of the valuation models. The process will allocate more risk where the valuation models are more robust. |
