Factor Investing: Good in theory, difficult in practice

Investors are always looking for higher returns at lower cost. This has never been truer than in today’s market environment.

Not surprisingly many have responded by embracing “factor investing” – the idea that active managers actually earn most of their excess returns from a common set of risk factors. Constructing a portfolio that systematically captures these factors can potentially deliver a return above that of the broader equity market at a much lower cost than traditional active strategies.

High returns at a lower cost – sounds like the perfect solution! But is factor investing really the panacea that equity investors have been waiting for?

Read the full white paper at the link beneath Related Files

Supporting documents

Click link to download and view these files