All Factor Investing/Smart Beta articles
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White papersWhy value can never go out of style in high yield
There is an unappealing paradox at the heart of investing in line with a bond index: the more indebted an issuer, the larger its place in the benchmark. The largest 20% of issuers account for close to 60% of the ICE BofA Global High Yield Index, for instance.¹
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White papersThe Full Picture: How Factors Work Together in Systematic Fixed Income
Systematic fixed-income investing is an active approach that aims to beat market returns by identifying and harnessing the factors that drive bond performance.
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White papersInnovating for Better DC Outcomes: The Evolution of Royal London Asset Management’s Equity Tilt Solutions
In 2019, Royal London Asset Management and our parent group, Royal London, identified the potential to develop the equity elements of its key propositions with the aim of further improving customer outcomes. The main beneficiaries of any development would be investors in the flagship governed range of risk‑rated multi‑asset portfolios, including the workplace default investment.
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White papersThe Great Rotation: Why the Recent Value Rally Is Ready to Resume
Barring a protracted stalemate in Iran, we believe value stocks are poised to resume their pre-conflict rally.
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PodcastAI: Transforming quantitative portfolio management
Artificial intelligence and machine learning are contributing increasingly to the process of identifying stock investment opportunities and managing portfolio risk, particularly when it comes to quantitative equity strategies that use mathematical models, algorithms and vast datasets to identify and capture the best ideas.
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White papersMDT: How we seek to enhance our alpha model
Elegance is an essential part of the process.
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White papersSystematic Active Fixed Income Turns 2
Systematic Active Fixed Income’s (SAFI) first two years reinforce the power of our investment process also demonstrating how SAFI can complement fundamental active managers given low alpha correlations. Read more about the 2-year SAFI experience at State Street.
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VideoHow has quant investing evolved over time?
In this short video, Daniel Mahr, Head of MDT Group, explores how quantitative investing has evolved – from early factor models to today’s data‑rich, machine‑learning‑driven strategies.
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White papersMacro-factors revisited: an evolving approach to portfolio resilience
This paper revisits and builds upon our 2024 research on macro-factor exposures across public and private markets, with a particular focus on private infrastructure.
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White papersHow Beta Investors Keep Alpha Under Control
Active ETFs are redefining the parameters of modern portfolio construction, offering solutions to the challenges faced by institutional investors. While it is easy to get lost in the rapidly expanding array of active ETFs, when investing in them European institutional investors have remained firmly anchored near core allocations around established benchmarks such as MSCI World and Europe.
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Video2024 Capital Market Assumptions
Neuberger Berman’s 2024 Capital Market Assumptions provide investors with forward-looking return and risk estimates for the major asset classes, across multiple geographies, agnostic of any tactical views or alpha-generating potential.
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White papersLow volatility, the hidden factor
Robert Haugen, who discovered the low-volatility anomaly (low vol) in 1972, wrote numerous articles and books to try to popularise what he called the ‘hidden factor’. To some extent, it was only the advent of smart beta investment strategies that turned his dream into reality, as low vol is central to the smart beta approach.
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White papersFrom Traditional to Sustainable Growth
This article is a 360-degree analysis of the growth investment concept. Academics generally circumscribed it to a mere anti-value status. We show that growth-oriented stocks not only present the characteristic of being expensive and over-priced.
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White papersAn Eventful Time for Event-Driven Investing
In a tough market environment, we believe company management teams and boards have to be more creative, daring and decisive; seeking event-driven opportunities is all about finding those taking the most impactful action.
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White papersCould Your Beta Be Better?
In the first of our articles on working with Official Institutions, we look into the importance of regularly questioning the assumptions behind your benchmark.
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White papersFactor investing: understanding your performance!
Multifactor strategies are based on investable portfolios, benchmarked against market capitalisation indices and tilted towards stocks with given characteristics (factors): they should be cheaper (value), more profitable (quality), less risky (low risk), and have outperformed in the past (momentum).
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White papers*Assessing the added value of thematic investments*
Thematic investing brings a new dimension to the usual asset class categories, resulting in fresh opportunities for investors to diversify portfolio risk and mitigate the impact of correlations between asset classes, sectors, regions and styles.
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White papersFor sustainability, diversification and upside potential: US value equities
It’s payback time for investors who have been seeing a return to favour of the equity value investment style after years of underperformance versus growth stocks. A sustainable investing approach in value equities can enable investors to benefit from attractive valuations of responsibly managed companies that can deliver steady long-term returns.
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White papersRevisiting Quality Investing
In the field of factor investing, quality is undoubtedly the equity factor with the weakest consensus.
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White papersEquity factor investing – An ever-evolving journey
The multi-faceted nature of equity factor investing means it can play a dynamic and highly useful role in portfolios, especially for investors looking for a diversified exposure that can perform in the long run.
