Theme 1
Investors are continuing to increase factor allocations despite a challenging period and divergent factor performance.
Invesco Global Thought Leadership
Invesco Global Factor Investing Study 2020
The study uncovers the strategies and views of factor investors across the globe
Highlights
238
Total sample respondents globally
US$25.4 tn
in assets under management
5
Key themes
Discover what factor investors around the globe are thinking right now in our fifth global factor investing study. It brings together the views of nearly 240 pension fund managers, insurers, sovereign investors, asset consultants, wealth managers and private banks. The biggest study of its kind in the industry, we spoke face to face with 138 institutional investors and 100 wholesale investors, representing over US$25.4 trillion AUM.1
Theme 2
Investors see factors as an important tool for managing fixed income risks, while the sources of alpha within the asset class are seen as creating significant opportunities for enhancing returns through a factor approach.
Theme 3
ESG is seen as aiding factor strategies and recent performance has added to momentum, with investors who have incorporated ESG more likely to cite positive performance from their factor allocations.
Theme 4
The majority of investors use ETFs as part of their factor strategies, with use having increased overall in the past 12 months. Price and ease-of-use advantages are particularly valued by investors, while liquidity and transparency are particularly valued by investors using ETFs to implement active strategies.
Theme 5
Factor investors are developing increasingly sophisticated strategies and upgrading their factor capabilities. Multi-factor is now the norm, and as factor investing permeates through portfolios, there is greater focus on tracking of exposures and correlations.
The Invesco advantage
US$108+ billion in AUM2
Invesco’s factor investing capabilities span a spectrum of options from market-weighted passive to customised active, enhanced by open architecture
36+ years of experience
Invesco has a vast long-term commitment to factor investing, starting in 1983
Focus on our clients
Invesco factor investing strategies encompass individualized portfolio solutions, customization, and support
How can we help?
If you’d like to discuss your factor allocations, complete the form and we’ll be in touch.
Notes
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1
As at 31 March 2020
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2
As at 30 September 2020
Investment risks
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The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Factor investing is an investment strategy in which securities are chosen based on certain characteristics and attributes that may explain differences in returns. Factor investing represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, both in active or passive vehicles. Factor investing may underperform cap-weighted benchmarks and increase portfolio risk.
Important information
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Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
