iQ Global Style Box Rotation Model

INVESTMENT OBJECTIVE

The iQ Global Style Box Rotation Model is a 15-stock growth model that seeks to outperform the S&P 500 by tactically shifting between various style boxes. The Model is craftily diversified by market cap, value, domicile and industry.

DYNAMIC INVESTMENT PROCESS

The iQ Global Style Box Rotation Model employs the following unemotional rules-based process:

  • Begin with a diversified starting universe comprised of the following 15 style box indices*:

    1. Domestic Large Cap Growth | Domestic Large Cap Core | Domestic Large Cap Value

    2. Domestic Mid Cap Growth | Domestic Mid Cap Core | Domestic Mid Cap Value

    3. Domestic Small Cap Growth | Domestic Small Cap Core | Domestic Small Cap Value

    4. International Large Cap Growth | International Large Cap Core | International Large Cap Value

    5. International SMid Cap Growth | International SMid Cap Core | International SMid Cap Value

  • Sort the 15 style box indices by technical attractiveness as measured by a multi-factor ranking system that utilizes long-term Stochastic Indicators, 12-month Exponential Price Momentum and long-term Relative Strength Index (RSI)) and select the top 3 style boxes.

  • Each selected Style Box is represented by its own unique 5-stock strategy; therefore, the Model selects a total of 15 stocks (five stocks for each of the top 3 style boxes) every seasonal quarter (Feb, May, Aug, Nov).

*Style box indices are created by iQuant.pro using Price-to-Book ratio.

Potential Benefits

A global style box rotation investment strategy can offer several benefits, including:

1. Diversification: By investing across different geographic regions and sectors, a global style box rotation strategy can provide diversification benefits, helping to reduce the overall risk of the portfolio.

2. Opportunity for higher returns: By investing in countries or sectors that are experiencing economic growth or outperforming other regions, a global style box rotation strategy may provide the opportunity for higher returns.

3. Reduced correlation: By investing across different regions and sectors, a global style box rotation strategy may have reduced correlation to other asset classes, potentially providing benefits in a well-diversified portfolio.

4. Risk management: By actively managing the portfolio allocation based on changing market conditions, a global style box rotation strategy may help to manage downside risk and preserve capital during market downturns.