Within the Greystone EAFE Plus fund, the EAFE Quantitative strategy offers additional stability.  As a stand-alone portfolio, its purely quantitative approach is especially appropriate for the risk-conscious investors. 

The fund's sub-advisor, Goldman Sachs Asset Management (GSAM) applies quantitative processes from the bottom up (stock selection) and the top down (sector, country and currency allocations).

GSAM quantitative teams calculate expected returns on approximately 3,500 stocks every day, using fundamental investment criteria that have been historically tested. Criteria weights are adjusted depending on historical returns, correlation and turnover, and historical & expected volatility.

Concurrently, forecasts are made for 21 stock markets and 10 currencies based on valuation, momentum, risk premium, fund flows and macro factors. There is “active” currency management; however, there is no active currency hedging.

The bottom-up/top-down elements are brought together through computer-based optimization models that consider portfolio objectives, target country allocations, return forecasts, risk and transaction costs.

The portfolio is reoptimized daily.  Stocks are sold when a more-attractive opportunity is found based on the overall risk/return (net of transaction costs).