Factor Investing
In-depth reporting on factor investing strategies for our pension fund and asset management readers from IPE’s award-winning journalists.
-
Special ReportHave factor investing strategies had their day?
Factors have inspired indices, spin-offs and a variety of investment strategies but it has become hard to argue that they will offer investors a persistent future premium
-
Asset Class ReportsEquities: Active investors keep their eye on the prize
As equity markets enter a new phase after the August 2024 sell-off, institutions are sticking to their long-term active equity approaches
-
NewsLD picks BankInvest for listed alternatives, citing quant, factor-based approach
Danish pension fund manager “pleasantly surprised” by volume of extremely high quality offers received
-
NewsEuropean investors remain sceptical on artificial intelligence impact, Invesco finds
A majority of North American and Asian investors believe, however, that traditional methods for investment analysis will be overshadowed by AI applications
-
FeaturesDid smart beta go ‘horribly wrong’?
In 2016, we published a paper titled ‘How can ‘smart beta’ go horribly wrong?’, the first in a series on the future of factor investing and other forms of so-called smart beta. Did smart beta go horribly wrong? Yes and no.
-
NewsSmart beta pioneer reignites debate on factor timing
Research Affiliates founder Rob Arnott finds ‘most factors look very cheap’ in a new paper highlighting the attractiveness of many equity factor strategies
-
Asset Class ReportsEquities – Factor investment strategies return to favour
After a few years of poor returns from factor investing, investors are again showing interest – but with more realistic expectations
-
Asset Class ReportsAsset class report – Equities
Factor investment strategies were once the ‘new black’ - scientific, quant driven approaches that could deliver the ‘smart beta’ nirvana of lower volatility returns and optimised exposure to robust return premia from small cap, value and quality stocks. Pundits always warned adopters that not all factors would perform all of the time - and indeed they didn’t. But investors are taking a fresh look at factor strategies now the extended spell of outperformance of growth stocks has passed, and value has reasserted itself.
-
AnalysisAnalysis: Outperformance brings factor investing back in favour
64% of investors say confidence in factor investing has improved over the past year, according to Invesco
-
Asset Class Reports
Quant managers: Quoniam’s Nigel Cresswell
Liam Kennedy spoke to Quoniam Asset Management’s CEO about the challenges and opportunities faced by a quant boutique
-
Asset Class ReportsQuant managers: back with new weapons
As investors show renewed interest in value strategies, quant managers look for better uses of alternative data
-
News
Factor investing increase driven by ESG, risk management – study
57% of institutional investors now use factors within their fixed income portfolios, up from 37% in the previous survey
-
News
Pension fund for Dutch harbour pilots ditches factor portfolio
Loodsen has converted its equity portfolio to four passive regional funds
-
FeaturesStrategically speaking: Lyxor & Amundi
Lyxor has made a mark over the 20-plus years of its existence, pioneering managed accounts for hedge funds, including the first dedicated institutional managed account platform, that it created for PGGM in 2010.
-
NewsNegative factor strategy return for ING scheme
The ING pension fund is sticking with is factor strategy for now but it will start hedging its liabilities in real terms instead of nominal terms
-
Asset Class ReportsPortfolio strategy – Factor investing report
COVID-19 has added a further blow to a decade of factor investing underperformance and highlighted the increasing impact of environmental, social and governance (ESG) considerations. In this report, we analyse how it may be possible to complement traditional factors with ESG-related measures.
-
Asset Class ReportsESG: Avoid sustainable equity exposure pitfalls
ESG strategies can introduce unintended factor biases, which can affect overall risk-return objectives if not managed correctly
-
Asset Class ReportsAsset allocation: More factors to consider
COVID-19 has added a further blow to a decade of factor investing underperformance and highlighted the increasing impact of ESG
-
InterviewsOn the record: Search for robust equity portfolios
IPE asked two investors how their equity portfolios are positioned
-
Special ReportFactor investing: Keeping a distance from single factors
The fluctuations of single factor returns have bolstered multi-factor strategies
