Our Services
Strategies & Solutions
Quantitative Equity Strategies (QES)
Quantitative Equity Strategies (QES) include both benchmark-aware and benchmark-agnostic active equity solutions for institutional clients.
NISA’s proprietary approach seeks to deliver consistent alpha by systematically exploiting market inefficiencies that have persisted across market cycles. This relies on combining durable structural opportunities with a meticulously engineered process designed to layer incremental value at every stage, including portfolio construction, execution, and risk management; collectively, the alpha generation process.
Through this single alpha generation process, we are able to offer two distinct strategies to meet client objectives:
- Dynamic Extension – Our flagship QE strategy that provides enhanced global equity exposure through long/short active extension. The strategy employs a wide breadth of active positioning (>4,000), and a dynamic application of leverage to manage risk characteristics (e.g., beta and tracking error). The end result is a risk-controlled strategy that seeks to deliver steady excess returns alongside full market participation.
- Equity Market Neutral (EMN) – A pure expression of our alpha generation process without market beta exposure. It seeks to add diversification and return enhancement in a similar risk-controlled manner (without altering overall equity market exposure) and is available in funded or unfunded formats.
Whether the objective is to anchor an equity allocation, implement a portable alpha strategy, or add a source of pure alpha generation to a portfolio, we believe our scalable active equity solutions can offer the persistent excess returns, managed risk characteristics and institutional precision that sophisticated investors demand.
There is no assurance that the investment strategies will be successful. Investing involves many risks, including market-based risk, and it is possible to lose money.
Investment in quantitative equity strategies is speculative and involves significant risks and potential conflicts of interest due to, among other things, the strategy’s investments. The strategy may be subject to wide swings in value. The Investment Manager will follow an investment strategy that, if unsuccessful, could involve substantial losses for investors. Although the Investment Manager has the flexibility to react to changing market conditions, changes in market conditions or an investment’s situation could nevertheless involve substantial losses. The Investment Manager makes no guarantee, either oral or written, that the strategy’s investment objective will be achieved.
The strategy may obtain leverage by, among other methods, borrowing, purchasing securities on margin and purchasing or entering into derivative investments that are inherently leveraged, such as options, futures, forward contracts, repurchase and reverse repurchase agreements and swaps. The effect of leverage with respect to any investment in a market that moves adversely to such investment could result in a loss that would be substantially greater than if the investment were not leveraged.
The Investment Manager may sell securities short in the strategy. Short selling is subject to a theoretically unlimited risk of loss because there is no limit on how much the price of a security may appreciate before the short position is closed out. There can be no assurance that the securities necessary to cover the short position will be available for purchase. In addition, purchasing the securities to close out the short position can, in itself, cause the price of the relevant securities to rise further, thereby increasing the loss incurred.
Disclosure Information
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No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) redistributed without prior written consent. This material has been prepared at your request by NISA Investment Advisors, LLC (“NISA”). This material is subject to change without notice. This document is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. This information is provided with the understanding that with respect to the material provided herein (i) NISA is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation, (ii) that you will make your own independent decision with respect to any course of action in connection herewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives, (iii) that you are capable of understanding and assessing the merits of a course of action and evaluating investment risks independently, and (iv) to the extent you are acting with respect to an ERISA plan, you are deemed to represent to NISA that you qualify and shall be treated as an independent fiduciary for purposes of applicable regulation. NISA does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and the material presented herein. You may not rely on the material contained herein. NISA shall not have any liability for any damages of any kind whatsoever relating to this material. No part of this document may be reproduced in any manner, in whole or in part, without the written permission of NISA except for your internal use. This material is being provided to you at no cost and any fees paid by you to NISA are solely for the provision of investment management services pursuant to a written agreement. All of the foregoing statements apply regardless of (i) whether you now currently or may in the future become a client of NISA and (ii) the terms contained in any applicable investment management agreement or similar contract between you and NISA.