QUANTITATIVE FACTOR MODEL (QFM)
The QFM model has five major components:
The Value factor evaluates whether a company's share price is attractive. The Quality factor quantifies the quality of business growth, margin and the health of the balance sheet of a company. The Technical factor involves analysis of short to long term share price movements of a company. The Market sentiment factor is measured by the change in market recommendations and earnings revisions. Each factor are weighted differently to reflect the style of the fund. For example, for a growth fund, the growth factor will have a higher weighting. Within each factor, the sub-components and their weightings can be altered to incorporate new indicators that better suit the model. QFM is therefore a highly versatile and adaptable platform which enables us to use sets of quantitative factors for screening out the most attractive companies in the global universe. The selection of factors and their sub-components is based on investment experience. They have been tested in multiple stock markets, including both developed and developing markets. |
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