Risk and Reward – Q1 2019

 In our latest edition, we look at how factor exposures are what really counts in a bond strategy and are drivers of active performance. 

Apr 11, 2019 | Invesco

This edition’s lead article explores how the authors applied a factor strategy to bonds. They argue that, even when a bond strategy is not explicitly labelled a factor strategy, its factor exposures are what really counts and drive the strategy’s active performance. This article is the first in a series of papers designed to help investors better understand the implications of factor investing in fixed income.
 

The edition also looks at how pension reform in mainland China could pave the way for target-date funds, with estimates that the market size could reach up to RMB 1.88 trillion.
 

On environmental, social and governance (ESG) issues, Invesco’s Henley Investment Centre lays out its core beliefs and show how the team implements them in equity-portfolio engagement, as well as illustrating its ESG engagement with three case studies.
 

Finally, the edition looks at low-volatility anchoring and equal weighting in two quantitative and statistical articles.
 

To find out more, click on “Download PDF”.

 

Related articles