Invesense

It is deeply embedded at Invesense philosophy that diversified, liquid and low cost solutions is the best way of building long term successful results. This conviction is found in decades of scientific research and an experience in multi asset classes.

We embedded our philosophy in Global Equities strategy to the extent that the strategy is broader and more diversified than most of the available indices. The strategy holds on average 2,000 stocks over more than 24 markets with an average market cap higher than many of the other indices. At the inception of the strategy this was considered “boring” and might provide a low return hence the diversification. So far that was not the case!

Long-Term Drivers of Higher Returns

Equity

The risk in losing money is rewarded with higher return compared to bonds

Value

Value companies beat expensive.

Size

Smaller companies beat larger ones.

Quality

High quality earning companies beat junky ones.

Momentum

Winners keep winning, losers keep losing.

Process

Maximise Return

Maximise expected return by selecting stocks with the highest factor scores

Score

Score each eligible security

Manage Risk

Manage risk in line with the broad market, including sector & country weights

Reconstitute & Rebalance

Flexible

Active vs Passive vs Invesense

Active Stock Picking
  • Relies on forecasting, timing and identifying mispricing in securities

  • Concentrated positions, strategies and risk

  • Constrained toward executing at market price

  • A process driven by stars

  • High management fees

Invesense
  • Investment approach built from academic research and industry experience

  • A systematic, diversified approach that provides a consistent focus on higher returns

  • A design that provides flexibility and allows lowest trading execution

  • A unified investment process & philosophy

  • Low management fees for a higher return net of benchmark and fees

Passive Indexing
  • A strategy that simply tracks and index

  • No flexibility, continuously tied to an index, restricting which securities to hold and when to trade

  • Constrained toward executing on index rebalancing dates

  • A commercial index dictates the strategy

  • Low management fees for an index return gross of fees

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