Insights - Factor Investing

At Invesco, we believe that high-quality results begin with specialized insight. We share our views and experience with clients via thought leadership materials.

Foundational concepts for understanding factor investing

13 August 2019 | Blaise Warren, Stephen Quance

Factor investing is a third pillar of investing, complementing active and passive approaches. We explain what factors are and the role they play in portfolios.

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Using factors for potential return enhancement

30 July 2019 | Invesco Investment Solutions

A complement to traditional active and market-weighted strategies

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False factors: Be aware

11 July 2019 | Xavier Gerard

There’s a lot of analysis of investment data and factors that show impressive results, but are any of them too good to be true? Invesco Quantitative Strategies explains how investors can spot poor data analysis.

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How can fixed income factors help investors with allocation decisions?

05 July 2019 | Jay Raol

We explore how factors can enhance bond allocations and improve the performance of balanced portfolios.

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Oil diversification with style: An interview

03 July 2019 | Mark Humphreys, Dr. Harald Lohre and Erhard Radatz

Risk & Reward speaks to authors of the diversifying oil exposure study about investment challenges of oil-rich countries and factor investing for sovereign wealth funds.

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A factor-based approach to diversifying oil exposure

02 July 2019 | Dr. Harald Lohre, Erhard Radatz, Carsten Rother and Mark Humphreys

Invesco Quantitative Strategies presents a multi-asset, multi-factor solution in which quality and low-volatility style factors play a crucial role in mitigating oil risk exposure while increasing overall portfolio diversification. 

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Implementation is key: Understanding and utilizing fixed-income and currency factors

18 June 2019 | Invesco

At the recent Invesco Asia Investment Lecture Series on Factor Investing, we looked at how understanding factors, including fixed-income and currency ones, correctly is key to implementing them.

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Active bond returns – powered by factors

15 April 2019 | Jay Raol, Stephen Quance

This first study in a series of papers on factor investing in fixed income argues that a bond strategy’s factor exposures are key in driving the strategy’s active performance.

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Your fixed income portfolio may have more factor exposure than you realized

15 April 2019 | Jay Raol, Stephen Quance, Shane Gallagher

The factor lens can increase transparency, help explain portfolio movements and clarify an active manager’s skill.

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Implementing a multi-factor commodity strategy: a practitioner's approach

16 January 2019 | Scott Hixon, Hua Tao, Scott Wolle

The Invesco Global Asset Allocation team proposes a commodity strategy that incorporates cross-sectional factors grounded in the research on commodity futures pricing.
 

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Invesco Global Factor Investing Study - 2018

03 October 2018 | Stephen Quance

Our third global factor investing study draws on views and opinions from 300 interviews with institutional and wholesale factor investors to provide insights on a wide range of themes including factor adoption and allocations, perceived barriers and future intentions.

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Factor investing in times of unconventional central bank policies

03 October 2018 | Julian Keuerleber

Analyzing which factors might be favored if monetary policy becomes more restrictive

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Factor investing: the third pillar of investing alongside active and passive

17 July 2018 | Stephen Quance

The rise of factor strategies in the investment landscape aids understanding and better decision making for investors

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Accommodating ESG objectives through factor investing

20 June 2018 | Stephen Quance

A factor-based approach can accommodate unique ESG objectives without constraining performance and provides flexibility to adapt to any new developments

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Factor investing takes hold in Asia as new asset management tool

02 February 2018 | Stephen Quance

Asian institutional investors increased allocations to factor investing in 2017

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Q&A: Multi-asset, multi-factor strategies

23 October 2017 | Invesco

  • Q&A: Multi-asset, multi-factor strategies

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The essentials of factor investing with Stephen Quance

02 October 2017 | Stephen Quance

Factor investing is a growing area of investment, with many in Asia interested to learn more and how it applies to their portfolios.

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Global Factor Investing Study 2017

01 October 2017 | Stephen Quance

Invesco's second annual global factor investing study was conducted with 108 different investors and intermediaries across 19 countries. The study identifies five key themes, illustrating the factor investing landscape and sentiment among some of the largest investors in the world.

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Introduction to factor investing series - Trend or time-tested approach?

25 June 2017 | Invesco

The newest thing or a time-tested approach to investing? Factor investing has been the focus of interest in recent times however factor based approaches aren't new.

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Introduction to factor investing series - Beyond single factor approaches

18 May 2017 | Invesco

Many single factors can outperform in discrete periods however can face excessive drawdowns. Multi-factor approaches balance the cyclicality and volatility of individual factors.

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Introduction to factor investing series - Six common factors explained

12 April 2017 | Invesco

Unlike traditional stock picking, factor investing builds on exposures to particular traits (called factors), that exhibit superior returns relative to a broad market-capitalisation weighted index benchmark.

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Introduction to factor investing series - What is a factor?

19 March 2017 | Invesco

In recent years, interest in factor-based investing has increased meaningfully as market participants seek precise and systematic solutions to achieve their investment objectives.

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