IOOF QuantPlus investment approach

Our IOOF QuantPlus team consider all factors. Before we combine asset classes we undertake a comprehensive process of structuring the underlying components. We begin with an investment universe of all listed shares in each country and filter out those that don't meet our stringent risk requirements. This is referred to as quantitative analysis and lays the foundation for the investment approach. After the foundation is set and quantitative modelling applied, we begin to apply our qualitative analysis, determining the quality or reasonableness of the investments within the portfolio structure. After the stocks are selected we use a variety of trading strategies with the objective of delivering you solid consistent returns.

We believe in this process – after all it's our team that developed it and we are the pioneers of factor investing within single diversified asset class vehicles.



1. Quantitative modelling -
Our foundation is laid with the  development of a diversified portfolio with risk-based factor exposure

We process a large opportunity set of shares in order to identify and exclude companies with risk characteristics that fail to meet our strict portfolio eligibility criteria. We then structure the portfolio by determining an optimal exposure to size and value factors within established risk and return parameters.

2. Qualitative analysis -
We overlay with practical considerations

Exposure to factors such as small capitalisation and "value" style shares requires careful consideration. In particular these shares may be vulnerable to liquidity risks or be in severe financial difficulty. A core part of the portfolio management team's responsibility is evaluating the eligibility of these shares  to contribute to an appropriate factor exposure.

3. Trading and execution strategies - To ensure efficiencies in costs which contributes to performance

Maximising returns is not a purely passive exercise. The QuantPlus framework ensures we consider transaction costs and tax implications when determining and executing trades. Having a well-structured and diversified portfolio means the trading window can be prolonged and turnover kept low. A significant part of the QuantPlus trading strategy is  use of cutting edge trading technology  and accessing alternative liquidity sources.

This disciplined approach leads to the construction of our well-diversified portfolios, with an optimal risk and return outcome, for both the Australian and international shares asset classes. These are then applied to our range of diversified profile funds which you can access through the Profile Managed Investment Schemes. For more information on these products, click here.