Risk and Reward – Q4 2018

In our latest edition, the Global Asset Allocation team share how they incorporate a factor-based approach into their commodity strategy.

Jan 9, 2019 | Invesco

In this edition, the Global Asset Allocation team show that the factor approach is by no means confined to equities. In their latest research, they apply it to commodities, where their profound knowledge of equity factors provided a number of synergies. In another article on factors, we also looked at tail risk management through the factor lens. Their results are as simple as they are compelling: diversification helps to mitigate tail risks, even in the factor space.


ESG integration is another big focus, with two of our investment teams operationalize this concept. In one article, we report on ESG integration in our systematic processes. In another, we look at ESG integration in Fixed Income. 

Finally, we investigate the predictive power of managers’ talk in financial results conference calls. They derive hard indicators from seemingly soft rhetoric – and show how useful manager-tone can be when forecasting an individual stock’s return.

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


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