From Exhibit 2, MultiFAK’s primary strategy is most likely:
risk reduction. diversification. return oriented.
It is risk reduction (overweight low volatility), but the answer as to why it is not a diversification oriented: “uses fewer securities (91 versus 100) overall than the index, which is not a diversification approach.”
If it were a diversification oriented, would it have used more securities than the index? i.e. e.g. 105?