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Recent Insights

View our research and perspectives on Chinese markets, quantitative methods, smart beta, and other topics important to institutional investors.

Will Your Factor Deliver? An Examination of Factor Robustness and Implementation Cost

Not every factor profits investors when implemented through a passive strategy. Size and quality show weak robustness, and liquidity-demanding…

Quantitative Easing—Beijing Style

Contrary to the belief of many casual central bank watchers, there is a striking parallel between China’s quantitative easing…

The Self-Fulfilling Prophecy of Popular Asset Pricing Models

Cornell and Hsu assert that the standard consumption-based model has failed to explain the cross-section of expected returns because…

Our Strategies

We believe that while markets are highly efficient, opportunities still exist to capture excess return through low cost systematic approaches, especially in noisy markets like Greater China.

Global Smart Beta

While "smart beta" has multiple accepted definitions, Rayliant uses it to mean low cost, systematic, transparent and beta-like strategies. As one of the leading providers of smart beta strategies in Asia, Rayliant offers deep understanding in how to design, select, and use smart beta in an investor's portfolio. Rayliant works with a number of partners to bring smart beta strategies to market including Research Affiliates and FTSE (FTSE RAFI), Nomura, and Realindex.

Greater China Quant-Active and Quantamental

Unlike developed markets, Chinese equity research is complicated by newer data sets and poor data quality. Chinese markets also exude behavioral and structural characteristics that set them apart from other markets. This limits the efficacy of traditional systematic approaches. Rayliant uses a systematic approach specific to Greater China equity and complements it with fundamental research performed in the local markets that informs systematic strategies and identifies alpha opportunities.

Greater China Smart Beta

Given the structural and behavioral differences in the markets of Greater China, traditional approaches to smart beta can be altered to better capture potential return opportunities while retaining the benefits of passive investing, like low cost, transparent and rules-based. Rayliant hosts a number of indexes along with its index partners such as China Securities Index (CSI RAFI), Taiwan Stock Exchange (TWSE RAFI), and FnGuide (FnGuide RAFI).

Our Approach

We are a different kind of investment management firm. We seek to have a broad impact on the industry not just through our research, but by how we operate and interact with clients.

Focus on Investor Outcomes

We strive to help rebalance the investment ecosystem in favor of investors. To accomplish that goal, we focus on investor outcomes, not short term performance or asset gathering. This focus permeates everything we do including how we hire, research, sell, market and even price. We avoid noisy performance attribution. We do not sell recent performance. We do not let product sales drive our research results. We do not data mine. We seek to earn trust-based partnerships with our clients and help them achieve their long term objectives.

Excellence without Arrogance

We believe in the quality of our people, research and strategies. However, we are deeply opposed to manager ego and all it represents. An ego built on alpha adds nothing to investor outcome. At Rayliant, we under emphasize the short term performance of investment strategies and the prowess of star managers. Instead, we place a humble emphasis on capacity, investment discipline, and all-in cost.

Tailored to Institutional Investors

We are focused on designing solutions that are uniquely tailored to institutional investors. The Rayliant team has a history of partnering closely with the largest institutions and providing them with research and products that help them achieve their goals. These partnerships are critical as Rayliant develops smart beta and Greater China equity strategies that institutional investors will find valuable in making equity allocations to this rapidly growing region.