Our latest edition explores the growing interest in factor investing, common approaches to risk mitigation strategies and emerging markets updates.
In the lead article, Stephen Quance, Director of Factor-Based Investing, Asia-Pacific, systematically compares factor investing to both active and passive approaches. His conclusion: although each of these three capabilities has advantages, none of them is inherently superior. Rather, finding the right approach depends on the investor’s goals and circumstances.
In another article, we discuss risk mitigation strategies. Portfolio insurance, once a niche concept, has now become mainstream. But many common approaches fail to adequately account for investors’ risk preferences. Invesco’s Quantitative Strategies team demonstrates how skillfully modifying traditional dynamic proportion portfolio insurance – or DPPI – can potentially lead to better outcomes.
Stuart Parks and Paula Niall explore the significant changes that have occurred in India over the last four years. Finally, James Ong discusses currency carry strategies and how emerging market currencies can be integrated into a portfolio.
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