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  • 7/21/2019 Quantech Investments Smart Beta

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    Xemo | 5

    Uue`tocd K`vostno`ts Atf

    Romkstorof es e Xrkveto Aknktof Cjnpe`y k` O`mae`f e`f ]eaos

    Romkstorof @j7 ;8==?44

    E`tdj`y Mer`or

    +66 =42=

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    Xemo | 2

    roaove`co tj beci tostk`m trefk`m systons, ospockeaay wdo` re`fjn jr stjcdestkc oaono`ts ero

    k`trjfucof k`tj tdo prjcofuro k` e` ettonpt tj njfoa roeakty njro cajsoay

    Curkjusay, scko`tklkc notdjf des `jt po`otretof eaa eroes jl dune` o`foevjur k` e` oquea ne``or.

    Et e tkno wdo` scko`tksts boakovo tdoy ney bo cjnk m cajso tj e Vdojry jl Ovorytdk`m tdet luaay

    oxpaek`s tdo pdyskcea u`kvorso, nucd jl lk`e`co e`f k`vostno`t ronek`s roaetkvoay u`tjucdof by

    scko`tklkc notdjf.

    ]dkao tdo wdooa ks mrefueaay tur`k`m, nucd k`vostno t ks stkaa mjvor`of by k tuktkj` e`f fkscrotkj`

    retdor tde` rkmjrjus que`tktetkvo e`eaysks. Vrefktkj`ea stjcibrjiors e`f k`vostno`t ne`emors devo

    roakof njro j` queaktetkvo tde` que`tktetkvo e`eaysks, ekfof k` ne`y cesos by tocd`kcea e`eaysks wdkcd

    des aeciof efoqueto folk ktkj` e`f stetkstkcea rkmjur, bjtd k` kts foskm` e`f kts knpaono tetkj`.

    Veaik`m doefs lkaa jur `owspepors e`f toaovkskj` scroo`s wktd ljrocests besof j` akttao jtdor tde`

    wdknskcea k`tuktkj` e`f tdo lk`e ckea nofke ks luaa jl fks-k`ljrnetkj` e`f soal-k`torostof spurkjus

    notdjfjajmy.

    By cj`trest, tdo rjao jl que tktetkvo e`eaysks ks tj eppay netdonetkcea notdjf tj trefk`m e`f

    k`vostno`t. Ae`fneris k`caufo Ajuks Becdoakors Vdojry jl Spocuaetkj` wrktto` k` 5;88, Derry

    Nerijwktzs Xjrtljakj Soaoctkj` wrktto` k` 5;?2 e`f tdo Baeci-Scdjaos njfoa fovoajpof by LkscdorBaeci e`f Nyrj` Scdjaos tj njfoa tdo prkco jl forkvetkvo socurktkos.

    Uue`tktetkvo e`eaysts fovoajp eamjrktdnkc, ruao besof trefk`m systons. Vdo k`put tj tdokr njfoas wkaa

    cortek`ay k`caufo prkco but wkaa easj jlto` k`caufo lu`feno`tea cjnpe`y e`f ocj`jnkc fete. Ne`y

    jl tdo bottor lu`f ne`emors, wdotdor cj`sckjusay jr `jt, wkaa k`caufo sucd e`eaysks k` tdokr

    ljrocestk`m e`f stjci pkcik`m.

    Vdoro ks djwovor j sucd tdk`m es e puroay necdk`o besof nocde`kcea syston et proso`t. Uueaktetkvo

    k`put ks stkaa roqukrof9 wdj i`jws, pordeps tdks wkaa cde`mo k` co`turkos tj cjno wktd tdo

    fovoajpno`t jl truo ertklkckea k`toaakmo`co. But k` tdo k`torkn, ne`y e que`tktetkvo syston e`f ne`y

    e que`tktetkvo e`eayst des boo` ljjaof by ajjik`m tjj cajsoay et tdojry wdkao `omaoctk`m tdo roeakty jl

    wdet deppo`s k` tdo roea wjraf erju`f tdon.

    ]o fj `jt o`memo k` Lu`feno`tea E`eaysks e`f fj `jt neio fkscrotkj`ery k`vostno`t fockskj`s

    oxcopt tj tdo oxto`t tdet7

    5. Vrefk`m systons `oof tj bo foskm`of k` tdo lkrst paeco9

    2. Vrefk`m systons `oof tj bo iopt up tj feto by cj`tk`uea rosoercd9 e`f

    3. Xjrtljakjs `oof tj bo cdjso .

    Rosoercd e`f Beci Vostk`m

    Fj wo boakovo tdet kt ks pjsskbao tjfey tj foskm` e trefk`m syston wdkcd eccuretoay profkcts tdo

    luturo:

    Njst onpdetkceaay `jt. Syston foskm` ks besof j` e prjbebkakstkc vkow tdet wdet des wjriof jvor

    ne`y yoers pest nkmdt djpoluaay bo oxpoctof tj porskst k`tj tdo luturo. @j eccureto ljrocest ce` bo

    nefo. ]o ce` noroay cj`caufo tdet neriots soon tj bodevo k` tdks jr tdet lesdkj` e`f tdet jlto`

    jbsorvof e`f fjcuno`tof loeturos sucd es njno`tun sdjuaf cj`tk`uo tj eppay.

    ]dotdor strkct scko tklkc fotornk`ksn roproso`ts roeakty jr jtdorwkso, cdejs tdojry summosts kt ney

    bo knpjsskbao k` prectkco tj profkct vory ler k`tj tdo luturo. Ovor.

    Sj wdoro fjos tdks aoevo us: Jur jw` jpk`kj` ks sknpao e`f u`oqukvjcea. Uue`tktetkvo e`eaysks e`f

    nocde`kcea trefk`m systons ero ler lrjn porloct but ero tdo bost jptkj` wo devo mjt. Ler bottor

    tde` muosswjri, du`cdos e`f k`tuktkj`. Jr queaktetkvo e`eaysks.

    Ruao besof trefk`m systons bomk wktd e` kfoe besof j` roeakty wdkcd nust tdo` bo rkmjrjusay beci

    tostof emek st dkstjrkcea fete k` e` dj`ost e`f roeakstkc ne``or. Sjnotdk m tdet ks sknpay `jtpjsskbao wktd e fkscrotkj`ery epprjecd tj k`vostk`m.

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    Xemo | 3

    ]o uso neriot fete strotcdk`m beci k` sjno cesos es ler es tdo 5;28s tj ru` tosts j` ne`y fklloro`t

    nocde`kcea systons e`f k`vostno`t kfoes. Kt ks knpjrte`t tj tost systons jvor aj`m porkjfs jl tkno

    e`f jvor ne`y k`struno`ts k` jrfor tj errkvo et stetkstkceaay veakf cj`causkj`s. Beci tostk`m o`ebaos

    us tj soo djw e mkvo` syston wjuaf devo porljrnof k` eaa typos jl neriot cj`fktkj`s buaa e`f boer

    neriots e`f fuaa, laet, skfoweys neriots.

    ]o devo cj`fuctof tdjuse fs jl djurs jl k`to`skvo rosoercd e`f beci tostk`m jvor tdo pest focefoe`f njro. ]o boakovo tdet cj`tk`uea rosoercd ks tdo ioy tj succoss k` ovor cde`mk`m neriot

    cj`fktkj`s. Beci tostk`m rovoeas tdet cortek` tro`f ljaajwk`m stretomkos e`f perenotors, wdkcd woro

    j`co dkmday succosslua, devo bocjno aoss sj wktd tkno, es k`croesof pertkckpetkj` k` tdo neriots des

    croetof mroetor `jkso. ]o boakovo tdet fkakmo`t, ceutkjus efeptetkj` jl curro`t systons wkaa bo

    `ocossery tj cj`tk`uo tj prjlkt lrjn tdo notdjfjajmy k` tdo luturo.

    Vdoro ks `j porloct syston but kt ks cortek`ay pjsskbao tj cj`struct e roaetkvoay sknpao stretomy jr sot

    jl systons wdkcd ero akioay tj prjvo rjbust e`f prjlktebao woaa k`tj tdo luturo. Ne`y wktd aoss

    oxporko`co loer tdo cj`sckjus jr ecckfo`tea lkttk`m jl e syston tj tdo fete, tdus errkvk`m et e notdjf

    wdkcd ajjis mjjf j` pest rosuats but lekas tj djaf up k` luturo k`vostno`t. Sjno fomroo jl dk`fskmdt

    ks k`ovktebao k` syston foskm` but ioopk`m e syston fjw` tj roaetkvoay low perenotors, o`surk`m tdet

    kt wjris j` e vory wkfo re`mo jl neriots e`f k`struno`ts jvor ne`y fkllork`m tkno porkjfs, e`f

    usk`m dkstjrkc fete strotcdk`m beci es ler es evekaebao ks tdo njst olloctkvo noe`s jl evjkfk`m jr

    nk`knkzk`m tdo curvo lkttk`m trep.

    Jur boakol, e`f cortek`ay jur oxporko`co ks tdet djwovor ceroluaay wo tdk`i tdk`ms jut, djwovor

    fkakmo`tay wo beci tost, wo wkaa usueaay lk f k` prectkco tdet tdk`ms tur jut fklloro tay wdo` wo stert

    trefk`m e.

    Nj`to Ceraj e`eaysks wktd ro-senpak`m doaps tj k`stka e fomroo jl ceutkj`. Kt toaas us tdoro ks e`

    eator`eto u`kvorso jut tdoro wdoro tdjso `kco aj`m porkjfs jl prjlktebkakty cjuaf oeskay bo ropaecof

    by aj`m porkjfs jl ajssos, ljr wdetovor roesj`. Kt sdjws gust djw jur oqukty curvo NKMDV ajji jr

    devo ajjiof kl tdk`ms def tur`of jut fklloro`tay. Re`fjn o`try tosts ce` easj doap us tj soo tdo wey

    roeakty ney tur` jut k` tdo luturo. Vostk`m usk m sy`tdotkc fete cj`structof usk`m Brjw`ke` njtkj`njfoas des easj doapof us mroetay k` rolk`k`m jur tdk`ik`m.

    Vdonos ney ro-jccur k` tdo neriots but tdo luturo ovor ajjis oxectay akio tdo pest. Neriots cde`mo

    e`f systons nust efept jr tdoy wkaa porksd.

    Vkno e`f tkno emek` wo devo `jtkcof djw tdo lkmuros prjfucof jvoreaa lrjn cju taoss Nj`to Ceraj

    sknuaetkj`s soon tj boer e nucd cajsor roaetkj`sdkp tj tdo roea aklo aj m torn treci rocjrfs jl aj`m

    survkvk`m nocde`kcea trefors tde` e`y ceroluaay pae``of tdojrotkcea oqukty curvo.

    Beci tostk m ktsoal fjos jt devo profkctkvo pjwor kt ce` j`ay ovor bo e prjbebkakstkc mukfo. ]o wkaa

    eaweys leco surprksos e`f fkseppjk`tno`ts. Es k` ovory eroe jl aklo yju gust devo tj fj yjur bost e`f

    eccopt tdet aklo wkaa prjbebay `jt tur` jut qukto es yju def pae``of.

    Beci tostk`m ks knporloct but kt ks `j`otdoaoss e dkmday usolua e`f k`structkvo tjja kl usof wktd ceroe`f e rocjm`ktkj` jl kts aknktetkj`s. Kt nust bo cj`fuctof dj`ostay e`f ljrns e usolua mukfo es tj

    wdet sjrt jl rosuats wo nkmdt soo k` luturo trefk`m lrjn e mkvo` syston.

    Jvor e`f ebjvo beci tostk`m, fkvorsklkcetkj` ks tdo njst olloctkvo prjtoctkj` ljr e` k`vostjr. Fj `jt

    put tjj mroet e prjpjrtkj` jl yjur k`vostebao cepktea k`tj e`y j`o syston, k`vostno t, stjci, bj`f,

    notdjfjajmy, essot caess, curro`cy, mojmrepdkcea romkj`, lu`f ne`emor, be`i. Baeci Swe`s

    eppoer wktd mroetor lroquo`cy tde` trefktkj`ea stetkstkcea e`eaysks aoefs us tj oxpoct.

    Mresp tdo roeakty tdet `jtdk`m ks e mkvo` e`f tdet `j-tdk`m e`f `j-j`o ks porloct. Vdet wey k`

    k`vostno t, es k` aklo, yju ero u`akioay tj bo u`paoese`tay surprksof eaj`m tdo wey. Kl yju ce``jt

    eccopt tdet jr fj jt boakovo kt tdo` yju wkaa k`ovktebay bo fkskaauskj`of e`f fkseppjk tof.

    K`vostno t ks psycdjajmkceaay vory tjumd k`foof djwovor mjjf yjur stretomy tdoro wkaa bo aj`mporkjfs jl foop frewfjw` wdo` yju wkaa cjno tj fjubt yjursoal e`f yjur notdjfs. Vdks mjos ljr

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    Xemo | 6

    ovory lu`f ne`emor, trefor e`f k`vostjr wdotdor tdoy ero systonetkc, fkscrotkj`ery jr sjnowdoro

    k` botwoo`. [ju `oof tj devo cj`lkfo`co tdet yjur notdjfjajmy neios so`so e`f tdet yjur

    eccju`t oqukty wkaa woetdor tdo stjrn e`f rotur` tj ow dkmds. Sucd cj`lkfo`co e`f stro`mtd ero

    oesy tj teai ebjut but nucd njro fkllkcuat tj prectkco sj boljro trefk`m jr k`vostk`m fj yjur

    ebsjauto bost tj o`suro yju u`forste`f tdo cj`copts e`f rksis k`vjavof.

    Romuaetjry

    ]o ero `jt lu`f ne`emors e`f wo ero `jt k`vostno`t efvksjrs. Jur rjao ks tj prjvkfo tocd`jajmy tj

    prjlosskj`ea k`vostjrs e`f romuaetof lu`f ne`emors wdj ero sjpdkstkcetof e`f oxporko`cof o`jumd

    tj cj`skfor tdo norkts jr jtdorwkso jl jur epprjecd e`f tj tdo` fockfo ljr tdonsoavos wdotdor tdoy

    ney wksd tj pursuo sucd e stretomy k` wdjao jr k` pert.

    ]o fj `jt mkvo k`vostno`t efvkco, ne`emo k`vostno`ts jr neio k`trjfuctkj`s.

    Jur Systons

    ]o devo bukat up e sukto jl trefk`m systons ljr jur cako`ts, cj`co`tretk`m k`ktkeaay j` stjcis e`f aj`m

    j`ay k`vostno`t.

    J`o roesj` tj cj`co`treto j` stjcis (es jppjsof tj luturos jr jtdor forkvetkvos) ks tdo mre`uaerkty

    jllorof e`f tdo ebkakty tj tost e syston k` roea trefk`m wktd e roaetkvoay sneaa enju`t jl cepktea. K`

    tdo luturos neriots, tdo skzo jl cj`trect ljr njst akqukf neriots ks ler tjj aermo tj trefo e

    nocde`kcea stretomy wktd aoss tde` sovorea nkaakj` pju`fs por stretomy.

    K` mo`orea, mjk`m sdjrt wktd nocde`kcea systons, ospockeaay k` tdo stjci neriot, ks ler aoss prjlktebao

    tde` mjk`m aj`m, oxcopt furk`m vory brkol porkjfs jl neriot turnjka. Ljr stjcis et aoest, wo prolor tj

    k`vost aj`m j`ay.

    Njno`tun K`vostk`m

    J`o ioy eroe jl systonetkc k`vostk`m ks tdo njno`tun stretomy. Et doert kt ks oxtronoay sknpao e`f

    ks j`o jl tdo njst dkmday rosoercdof e`f knpaono`tof stretomkos k` tdo que tktetkvo k vostno`t

    k`fustry.

    Vdoro ero j`ay twj weys tj k`vost (jr k`foof trefo) prjlktebay7

    Buy et j`o prkco e`f aetor oxkt yjur pjsktkj` et e dkmdor prkco.

    Soaa sdjrt stjci tdet yju fj `jt jw` e`f kt buy beci aetor et e ajwor prkco.

    @j j`o djafs stjcis ljr ovor. Buy e`f djaf k`vostk`m ks e nytd. Ovo` kl yju djaf e` k`fox trecik`m

    Oxcde`mo Vrefof Lu`f jr nutuea lu`f yju ero k` lect o`memk`m k` tro`f ljaajwk m, sk`co e` k`fox

    sucd es tdo LVSO 588 cj`sksts jl stjcis wdkcd devo tdo mroetost neriot cepkteaksetkj` et e`y mkvo`njno`t k` tkno. Stjcis wdkcd tro`f upwerf k` prkco gjk` tdo k`fox e`f ero bjumdt by tdo OVL

    ne`emor, wdkao stjcis wdkcd ajso veauo aoevo tdo k`fox e`f ero tdus sjaf by tdo OVL ne`emor.

    Cjrpjreto ljrtu`os wex e`f we`o jvor tkno e`f e`y k`vostjr, wdotdor fkscrotkj`ery jr systonetkc,

    des tj lk`f sjno notdjf jl buyk`m doeatdy cjnpe`kos e`f soaak`m tdjso wdjso ljrtu`os ero j` tdo

    focak`o.

    Bjtd ecefonkc stufkos e`f prectkcea rosuats lrjn systons besof lu`f ne`emors summost tdet

    njno`tun k`vostk`m ks j`o jl tdo bost weys tj ecdkovo tdo ebjvo jbgoct. Stufkos devo lju`f tdet

    njno`tun to`fs tj porskst bjtd j` tdo upskfo e`f tdo fjw`skfo. Stjcis wdkcd devo rkso` k` roco`t

    tknos to`f tj cerry j` k`croesk`m k` veauo es njro k`vostjrs ljaajw tdo rksk`m prkco. Stjcis wdkcd

    devo roco tay oxdkbktof ometkvo njno`tun to`f tj cj`tk`uo fjw`werfs ljr e lurtdor porkjf.

    Njno`tun k`vostk`m ks easj sjnotknos rolorrof tj es tro`f ljaajwk`m.

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    Xemo | ?

    Vro`f ljaajwk`m ks e fkroctkj`ea stretomy e tro`f ljaajwk`m syston teios pjsktkj`s k` neriots wdkcd

    kt oxpocts tj tro`f k` kts levjur jvor tkno. K` cj trest tj prjpj`o`ts jl tdo ollkcko`t neriot

    dypjtdosks, tro`f ljaajwors boakovo tdet sustek`of tro`fs ero ovkfo`cof k` neriots es pertkckpe`ts

    teio tkno tj luaay efgust tj cde mk`m lu`feno`tea lectjrs k` wjraf ocj`jnkos jr k` tdo ljrtu`os jl e`

    k`fkvkfuea stjci. Lu`feno`tea sdklts fj `jt jccur k`ste`te`ojusay e`f jlto` teio cj`skforebao tkno

    tj u`ljaf. Sucd efgustno`ts jlto` teio tkno tj lkator tdrjumd tj neriot pertkckpe`ts e`f j`ocj`soquo`co ks tdo roaetkvo oeso wktd wdkcd rjbust e f oaome`tay sknpao tro`f ljaajwk`m stretomkos

    ce` bo foskm`of tj prjlkt lrjn tdo rosuate`t tro`fs.

    E tro`f ljaajwk`m stretomy k`vjavos k`ktketk`m e pjsktkj` k` e tro`fk`m neriot, djafk`m tdet pjsktkj`

    wdkao tdo tro`f aests e`f akqukfetk`m pjsktkj`s wdo` tdo syston porcokvos tdet e tro`f des o`fof.

    Vro`f ljaajwk`m ks jlto` sunnerkzof es ru``k`m yjur prjlkts e`f cuttk`m yjur ajssos. Kt sju`fs

    sknpao o`jumd (e`f cj`coptueaay kt ks) but kt teios sjno yoers jl k`to`skvo rosoercd e`f prectkcea

    k`vostno`t oxporko`co tj luaay u`forste`f e`f succossluaay knpaono`t tdo notdjfjajmy.

    ]o levjur e roaetkvoay aj`m torn, sajw njvk`m njno`tun stretomy wktd e pjsktkj` usueaay bok`m

    doaf ljr nj`tds (sjnotknos yoers) retdor tde` djurs jr feys. Aj`m torn systons to`f tj bo njro

    furebao jvor tkno e`f ero cjst olloctkvo k` torns jl sakppemo e`f cjnnksskj`s tdo sajwor tdo

    tur`jvor jl tdo pjrtljakj tdo aoss vua`orebao yju ero tj tdo lrkctkj`ea cjsts jl k vostno`t. Sdjrt torn

    systons k` mo`orea devo e nucd sdjrtor sdoal aklo tdoy soon tj bo aoss stebao e`f ero jlto` lkttof tj

    njro spocklkc neriot sktuetkj`s e`f tdus `oof cj`ste`t e`f repkf cde`mo jvor tkno k` jrfor tj

    nek`tek` prjlktebkakty. Sdjrt torn systons k`vjavo mroetor pjrtljakj tur`jvor e`f ero tdus subgoct tj

    prjpjrtkj`etoay mroetor cjsts.

    Uue`tocd Snert Bote - E Rjtetkj`ea Njno`tun Syston ljr Stjcis

    K` osso`co tdo doert jl tdks syston ks sknpao k` tdo oxtrono.

    Olloctkvoay tdks syston ce` bo ajjiof j` es e` o`de`cof k`fox. Vdo S&X ?88 k`vosts k` tdo tjp ?88

    _S stjcis k` torns jl neriot cepkteaksetkj`. Vdks syston k`stoef k`vosts k` tdo tjp T porljrnorse`f effktkj`eaay ettonpts tj oxcaufo cortek stjcis wdkcd ero akioay tj dk for porljrne`co. Ljr e

    mkvo` u`kvorso jl stjcis, tdo syston re`is tdo porljrne`co jl tdet u`kvorso j` e porkjfkc besks. Vdo

    bost porljrnors ero tdjso stjcis wdkcd devo rocjrfof tdo mroetost mek` et tdo o`f jl tdo porkjf k`

    quostkj`. Et tdo bomk``k`m jl tdo knnofketoay succoofk`m porkjf tdo k`vostno`t pjrtljakj ks

    efgustof tj k`vost k` tdo tjp T porljrnors. E`y oxkstk`m djafk`ms wdkcd devo leaao` jutskfo tdo tjp

    T ero sjaf e`f e`y `ow o`tre`ts tj tdo tjp T cetomjry ero purcdesof. Oxkstk`m djafk`ms wdkcd ronek`

    wktdk` tdo tjp T porljrnors ero rotek`of.

    Vdus o`try e`f oxkt ruaos ce` bo rofucof tj tdo ljaajwk`m ljrnuae7

    O`try. Subgoct tj verkjus lkators (soo boajw) et tdo bomk` k`m jl oecd `ow porkjf buy et tdo

    jpo` tdo tjp T porljrnk`m stjcis (jr retdor e`y jl tdo tjp T porljrnk`m stjcis yju fj jt

    earoefy djaf).

    Oxkt. Et tdo bomk``k m jl oecd `ow porkjf soaa et tdo jpo` e`y stjcis yju djaf wdkcd `j

    aj`mor re`i enj`mst tdo tjp T porljrnk`m k`struno`ts k` yjur u`kvorso.

    Vdo verkjus perenotors jl tdo syston ero es ljaajws7

    Nj`oy Ne`emono`t. Vdo nj`oy ne`emono`t eamjrktdn k vosts tjtea eccju`t veauo T k` oecd

    `ow pjsktkj`, aoss e bullor tj o`suro tdet `j nermk` jr aovoremo ks k`currof k` tdo eccju`t.

    Njno`tun. Nuatkpao ajji beci porkjfs ero usof, oxprossof k` feys, e`f ero usof k` tdo

    porljrne co ceacuaetkj` ljr oecd k`struno`t (` ajji beci porkjfs). Vdo nuatkpao ajji beci porkjfs

    re`i lrjn aj`m torn fjw` tj roaetkvoay sdjrt torn porkjfs. Vdo porljrne co noesurono`ts teio tdo

    njst roco`t cajsk`m prkco jl tdo stjci e`f fkvkfos kt by tdo cajsk`m prkco jl tdo stjci et tdo bomk``k`m

    jl tdo roaove`t ajji beci porkjf. Vdo noesurono ts tdus forkvof ero tdo` effof e`f fkvkfof by `

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