Growth is expensive. Innovation doesn't have to be.

Alpha is the additional return a portfolio or strategy provides beyond what would be expected for the amount of risk it takes.

Barra GEMLT Growth model computes an asset's sensitivities to industry groups, market characteristics and fundamental data. This includes to the growth factor that is based on earnings and sales growth characteristics, among others.

Beta: A beta investment means a portfolio or investment has the same risk as the market, as represented by a chosen market index.

Cap-weighted index is an index in which each constituent is weighted based on its market capitalization. This approach gives larger companies a greater influence on index performance than smaller ones.

Correlations: Correlation is the extent of which two securities move with each other, where highly correlated securities have similar return patterns. Low correlation between securities often contributes to diversification, a way to lower portfolio risk.

Intangible asset is a nonphysical asset, such as software, data, intellectual property, brand value or organizational knowledge, that may contribute to a company’s long-term earnings power.

Market capitalization is a company's market value, calculated by multiplying the company's share price by the number of shares outstanding.

MSCI World IMI Index captures large-, mid- and small-cap representation across developed markets countries.

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MSCI World Growth Index captures large- and mid-cap securities exhibiting overall growth style characteristics across developed market countries.

Return on invested capital is after-tax profitability of capital invested by a company’s shareholders and debt holders.

Risk-adjusted return is an investment return evaluated in relation to the amount of risk taken to achieve it.

T-stat is a statistical measure that helps assess whether a relationship shown in a regression analysis is likely to be meaningful rather than the result of chance. For large, normally distributed data, a T-stat greater than 2 (or less than -2) suggests statistical significance.

Artificial Intelligence (AI) refers to computational systems designed to perform tasks that typically require human intelligence, such as pattern recognition, decision-making, and prediction. In investment management, AI may be used to support portfolio construction, risk assessment, and trading strategies.

Machine Learning (ML) is a subset of AI that enables systems to identify patterns based on data inputs without being explicitly programmed. ML models may be used in stock selection to identify investment opportunities based on historical and real-time data.

Natural Language Processing (NLP) is a field of AI focused on the interpretation and generation of human language by machines. In financial contexts, NLP may be applied to analyze textual data such as earnings reports to inform investment decisions.  

Large Language Models (LLMs) are advanced NLP systems trained on extensive datasets to understand and generate human-like text. In investment management, LLMs may assist in synthesizing qualitative information or generating insights, but do not independently make investment decisions.

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