All Factor Investing/Smart Beta articles
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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 papersCIO views: a new era of finding alpha
Uncertainty from higher interest rates, mixed data and geopolitical risk is fuelling more volatility. How is active management even more relevant in the current context? Are the former winners gone? Is this a new era of finding alpha?
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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.
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White papersBuilding Short-Term Resilience Into Long-Term Premia
Strategies designed to deliver risk premia over time need help to survive potential potholes and hairpin corners along the way.
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White papersValue and multi-factor equity investing – When value spreads compress
With value spreads now at levels last seen at the peak of the tech bubble in 2000 [1], we expect spreads to narrow in the coming years. That bodes well for value and multi-factor equity strategies irrespectively of their level of sophistication.
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White papersValue investing: Is this the biggest opportunity since the tech bubble?
Value stocks have been underperforming ‘glamour stocks’ for a while, rendering valuations as cheap as they were in the tech bubble of 2000, while ‘glamour stocks’ are as expensive as back then.
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White papersDiversify your allocation to corporate bonds with multi-factor investing
Over the past decade, multi-factor investing in corporate bonds has seen significant development. Easier access to better datasets along with an extensive body of research has enabled managers to move the dial significantly.
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White papersIs factor investing still relevant today?
In 50 years of factor investing, there have been a series of love/hate phases with regard to the use of factors in selecting stocks for portfolios.
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White papersValue stocks – Different definitions can mean significantly different outcomes
There is no universal approach to identifying value stocks or measuring their performance.
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White papersLow-volatility investing, here for the long run
A decade ago, after undertaking comprehensive proprietary research into the characteristics of low-risk stocks, we launched our global low-volatility equity strategy.
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White papersDiversification through factor-based investing in corporate bonds
Allocations to factor-based strategies in corporate bonds have grown, with an expanding body of research demonstrating its advantages.
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White papersUnderstanding the Performance of the Equity Value Factor
After decades of sound performance, doubts have been cast on the ability of the equity value strategy to keep delivering in the aftermath of the 2008 Global Financial Crisis. Indeed, in a context marked by low yields, sluggish growth and subdued inflation combined with an accelerating digitalization of the economy, value investors have struggled to see the light at the end of the tunnel. But what does the future hold?
