All Factor Investing/Smart Beta articles – Page 3
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White papers
Simply Put(Writing)
PutWrite strategies can improve the risk-return efficiency, liquidity, flexibility and cost-effectiveness of investor portfolios.
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White papers
The Circular Q3 2019: keeping you in the sustainability loop
As responsible-investment activity heats up, we sample temperatures across the market to pinpoint flaring activity
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Factor investing also works in corporate bond markets
Impressed by the historically good performance of factor investing in equity markets, more and more investors are appreciating the potential of this approach for bonds, says investment specialist Grégory Taieb of BNP Paribas Asset Management. “It can improve a portfolio’s long-term risk/return profile, and create diversification benefits for investors.”
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White papers
Benefits of an allocation to low-volatility equities for risk-averse investors
While empirical evidence of the low-volatility factor has existed since the 1970’s, interest among investors grew in the wake of the global financial crisis, through exposure to low-risk strategies. The low-volatility factor became the “Hot Topic” from both an academic and an investment standpoint.
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Quantitative Science—Actively Adding To Fixed Income Decisions
Quantitative vs. active debate? This Fixed Income Markets explains how our “active quant” approach sets us apart.
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Five factor investing mistakes - and how to navigate them
It’s not been plain sailing for factor investing in recent years, but we’ve identified some ways to improve the chances of its success.
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Refining Risk Management for an Uncertain World
Investors are facing a strategic conundrum in a world of vast political, macroeconomic and market risks. In this environment, generating a better risk/return balance requires a deeper understanding of the sources of risk across asset classes and new data analysis techniques.
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Portfolio Risk Management: A Multidimensional Perspective
Asset allocation, effective portfolio design and dynamic management have always been powerful tools for battling volatile markets, but risk has come into even sharper focus lately. Economic growth is slowing, yields are low and stocks have taken several tumbles. Investors are looking for new ways to tackle risk.
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White papers
Factor Investing In European Offices Smart - Smart Beta Compared To Traditional Styles Q2 2019
In this report, we apply our new factor investing approach to close to 40 European office markets for the first time. This framework quantifies factors such as Volatility, Liquidity, Quality, Value, Yield and Growth. A comparison of our factor investing results to the traditional “core” and “value-add” investment styles is also provided.
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White papers
Active multi-factor interest rate management
Quantitative alpha strategies in interest rate markets have repeatedly been questioned over recent years. Regular interventions by central banks – often running contrary to fundamental trends – were a challenge for the forecasting quality of numerous approaches. Yet it is possible to generate robust outperformance, even in difficult market conditions, by applying a diversified multi-factor rates overlay.
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White papers
Innovative factors provide leading edge – on the potential of alternative data
An active, factor-based strategy focuses on tapping into new sources of data, on identifying relevant information and how to intelligently combine such information. Within this context alternative data – texts, images, or audio files – is becoming more important for the investment process, and regarding additional analytical value. At the same time, comprehensive and swift analysis requires state-of-the-art technology and plenty of experience.
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White papers
An alternative to traditional euro credit management: a smart beta credit approach incorporating ESG criteria
How should we approach bond management as the end of a bull market cycle un- precedented in terms of its size and duration begins? Over the past two decades, bond portfolios have been boosted by the steady fall in interest rates. This has reduced the importance of bond selection – all investors have needed to do to prosper has been to increase their portfolio’s duration and its exposure to credit risk and less liquid assets.
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White papers
Get active about your passive
The evidence is mounting that investors have given up on trying to beat the market in US large caps. For example, Bloomberg recently reported that passively managed large cap US equity fund assets overtook actively managed large cap US equity fund assets at the end of 2018.
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White papers
Cross Asset Investment Strategy Special Edition: Outlook 2019
With late cycle features continuing to materialise and a higher level of vulnerability developing due to the uncertain geopolitical backdrop, 2019 will require investors to embrace a more prudent approach, despite the benign global economic outlook.
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White papers
Deep dive in factor definitions and behaviors to better combine them
Anticipating the economic and financial environment evolution and its impact on equity market is not easy.
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White papers
Factor Investing and Smart Beta Solutions
Smart Beta & Factor Investing strategies have been developed to address the two main limits of traditional market capitalization weighted indices.
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White papers
Performance of Style Portfolios in Credit Markets
Factor investing has been well studied and documented by academics and practitioners in equity markets. Investment strategies which harvest well-defined premia such as value, momentum, size and quality have grown in popularity as more investors became familiar with their properties.
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White papers
Optimal blending of smart beta and multi-factor portfolios
There has been extraordinary growth in the use of smart beta funds by institutional investors, both large and small.
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White papers
Should risk controlled equity be seen as a smart beta?
According to the Financial Times lexicon, “Smart beta strategies attempt to deliver a better risk and return trade off than traditional market cap weighted indices”.