EFTA Document EFTA01364395

Risk Premia Implementation Isolating Alternative Beta: Equities Example • Long only implementation of factor research produces portfolios which derive their risk from and are highly correlated traditional market risk • Long/Short "Relative Performance" implementation of factor research isolate exposure to the factor/risk that is rewarded and eliminates directional market exposure producing return sources which are highly diversifying • The charts below show correlations to MSCI World of Re