Factor investing is a systematic approach to portfolio construction that finds stocks to achieve specific risk and return objectives. Fund managers create portfolios that incorporate risk factors such as low volatility, value, momentum, dividend, size, quality and yield in an effort to boost returns. The landscape is expanding quickly as asset managers and investors look to outperform the market and gain greater control of risk. According to a study by BlackRock, the factor industry is worth $1.9 trillion in AUM and has grown at around 11% per year since 2011. This month’s Asset Management Monitor – Advisor Report evaluates coverage group firms that address factor investing strategies through educational resources, dedicated centers, commentaries, blog posts and tools.
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