Do you think factor investing can be applied in fixed income? Sample size: 147
How has the current environment (high inflation and prospect of rising interest rates) impacted the attractiveness of factor investing in fixed income? Sample size: 78
Which investments factors are you targeting in your fixed income portfolio? Which macro fixed income factors are you using in your factor investing strategy? Sample size: 45
Equity factor faith rewarded: market turmoil highlights value of factors in managing risk
In our first theme, we focus on the performance of factors during recent market volatility and the impact that this had on investor sentiment. We find for many the volatile environment has demonstrated the strengths of a factor approach, with factor exposures now seen as fundamental in understanding the relative performance of portfolios.
ESG performance challenges drive interest in applying a factor approach to ESG
In theme two, we look at the intersection of factor investing and ESG. Factors are now seen as an important tool for maintaining performance when adopting ESG, for example by controlling for unwanted bias resulting from ESG integration.
Accelerating rate of change in markets highlights the benefits of tactical tilting to a long-term, diversified multi-factor approach
In theme four, we explore approaches to implementation and find four-fifths of factor investors now adjust factor weights through time. This is driven by the varying performance of different factors over the economic cycle and desire to balance out exposures across the portfolio. We note many investors are using factor products both tactically and strategically and this differentiation plays an important role in product selection.
Invesco Global Factor Investing Study 2022
Understand the drivers of factor investing, investor experiences, and methods of implementation. Read the PDF now.
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.
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.
