1.     Alpha is the portion of the total return on the portfolio not attributable to the portfolio’s exposure to its benchmark or index.

2.     Smart Beta refers to quantitative index-based strategies

3.     Risk Premia refers to the excess return demanded by investors to compensate them for a specific risk of holding an asset.

4.     Smart Beta factors tend to be well known in academic literature and are well-documented. The factors tend to be easier to implement since they can be created with readily available data and simple, rules-based frameworks.

All investing involves risks, including possible loss of principal.

Equity securities are more volatile than fixed income securities and subject to greater risks.

Quantinomics is a behind-the-scenes look at insights and factors that shape GSAM Quantitative Investment Strategies team’s investment strategies.

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