Advanced Factor Strategies
TEXT - INVESTMENT STRATEGIES - ROSENBERG EQUITIES - ADVANCED FACTOR STRATEGIES - What is factor investing ....
What is factor investing?
Factor Investing aims to offer investors a low cost and transparent way to improve risk and return by capturing specific equity characteristics such as quality, low volatility, value and momentum.
Why consider factor investing?
We believe that factor investing is a more efficient way of accessing long-run equity returns than investing in a market-capitalisation weighted index. Factor investing can be efficient, cost effective and provides investors with diversified exposure to equity markets. Importantly, individual factors may offer different patterns of risk and return and, as such, investors can use factor investing to better target specific investment goals. Investors may choose to target just one factor or mix factors in a way that best matches their investment needs.
Our approach to factor investing?
We have developed an advanced approach to Factor Investing that is anchored to company fundamentals. Our factors benefit from value-added proprietary data and incorporate controls which aim to reduce unnecessary investment risk.
We can offer our Advanced Factor capability for single factors (Low Volatility, Quality, Value or Momentum), or blended factor strategies designed to meet specific investment needs:
This strategy aims to provide exposure to the Low Volatility and Quality factors and fully integrates ESG considerations. The result is a portfolio that seeks to provide superior, long-term equity returns but with lower total volatility than a standard market capitalization-weighted index. By design, we would expect this strategy to perform best during down markets while capturing equity returns in rising markets.
This strategy aims to provide exposure to four factors (Low Volatility, Quality, Value and Momentum) and fully integrates ESG considerations. The result is a portfolio that seeks to provide superior long-term equity when compared to a standard market capitalization-weighted index. As this strategy is exposed to a diversified range of factors we expect it to perform well in most market environments with low overall levels of active risk.
27 September 2017
Fundamental Factors: Machine learning in factor investing
Part three of a three part primer series
27 September 2017
Fundamental Factors: Around the world in four factors
Part two of a three part primer series.