Smart Multi-Factor Equity Fund

Investment Philosophy

Aeon Smart Multi-Factor Equity Fund is based on a disciplined approach to exploit sources of return in stock selection and trading. Strategies are designed, tested and managed on a systematic basis, underpinned by a fundamental rationale.

The fund incorporates rigorous risk management and qualitative portfolio analysis to remove excessive risk. The fund comprises of a number of bespoke techniques which increase the level of potential outperformance, at a lower level of risk, by delivering alpha from a number of different sources.

The Smart Multi-Factor Equity Fund combines 3 systematic strategies:

• Fundamental Factor Model: We select securities using a multi-factor model that is driven by carefully chosen fundamental factors. These fundamental factors are correlated with outperformance in a way that is consistent and explainable.
• Momentum Strategy: We only select securities that reflect the fundamental view in their actual price. Factors are generally based on momentum.
• Trading Strategy: We overlay a trading strategy that seeks to earn an additional return by taking advantage of short-term mispricing. Factors are generally based on mean reversion.