Risk and Reward - Q1 2018

Research and investment strategies

Apr 24, 2018 | Invesco

Not long ago, bitcoins were reserved for a small number of computer experts creating their own currency using an arcane technology called “blockchain”. Even though many observers foresee blockchain ushering in a new digital revolution, there are clearly risks involved, and the details of the new technology remain fairly obscure. This is why we’ve devoted our feature article to exploring this technology and the cryptotokens it enables.

In two of the other articles, we continue our examination of factor investing. Those transitioning from a traditional asset allocation into a more modern factor approach can benefit from thoughtful guidance. Our experts have developed a roadmap to help portfolio managers along the way. We also demonstrate how factor investing can be applied to currencies, how currency risks can be mitigated and currency returns enhanced, by using foreign-exchange style factors.

Finally, responsible investing (RI) has attracted a growing following in recent years. But most RI strategies remain confined to developed market equities. Our researchers have explored a wholly different approach to RI, focusing on emerging market bonds.

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