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10 October 2019Factor investing is gaining in popularity, with investors attracted by the enhanced returns, reduced risk and diversified exposure that factor investing offers at a time when investors are navigating a highly uncertain future.
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18 September 2019‘The Future is Factor Investing’ was the theme for the inaugural Satrix conference, hosted in Cape Town and Johannesburg last week. This event focused on factor investing as a solution to optimising outcomes in an increasingly challenging investment environment.
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2 August 2018In this tenth and final article, we discuss building factor portfolios using risk-based allocations. These strategies are typically designed to yield either lower portfolio volatility, or greater diversification.
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21 June 2018This article is the ninth in our series of articles aimed at discussing practical ways to employ the power of factor investing. The previous article discussed an optimal approach to blending factors exposures, called multi-factor portfolio construction.
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24 May 2018This article is the eighth in our series of articles aimed at discussing practical ways to employ the power of factor investing. In our previous article, we discussed how best to incorporate responsible investing (RI) or ESG principles, within the process of factor investing.
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11 January 2018This article is the final in our series of articles aimed at discussing practical ways to employ the power of factor investing. The previous article discussed building outcome orientated multi-factor portfolios.
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7 December 2017This article/video is the seventh in our series of articles aimed at discussing practical ways to employ the power of factor investing, by head of portfolio solutions at Satrix, Jason Swartz.
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14 November 2017This article/video is the sixth in our series of articles aimed at discussing practical ways to employ the power of factor investing, by head of portfolio solutions at Satrix, Jason Swartz. In our previous issue, we discussed how to incorporate a factor-based equity portfolio within a multi-asset solution. In this article, we discuss employing factor investing in a more tactical manner, in order to express an investment view in your portfolio.
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26 October 2017This article/video is the fifth in our series of articles aimed at discussing practical ways to employ the power of factor investing, by head of portfolio solutions at Satrix, Jason Swartz. In our previous issue, we discussed blending factors via strategic allocations to each factor to achieve a diversified equity portfolio.
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2 September 2017This article is the fourth in our series of articles aimed at discussing practical ways to employ the power of factor investing. In our previous article, we discussed building a liquidity sleeve around your portfolio to aid liquidity management. In this article, we discuss blending factors with strategic allocations to each factor in order to achieve a diversified equity portfolio, while still exposing your portfolio to each factor’s long-term return premium.
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7 July 2017This article is the third in our series of articles aimed at discussing practical ways to employ the power of factor investing, by head of portfolio solutions at Satrix, Jason Swartz. In our previous issue, we discussed the concept of portfolio completion, where an investor could address unintended factor exposures through plugging a gap in their portfolio with complementary factor exposures. In this article, we discuss employing factor investing to enhance the trading flexibility of a portfolio through the use of ETFs (exchange traded funds).
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7 July 2017We are pleased to bring you the second in our series of articles aimed at discussing practical ways to employ the power of factor investing, by head of portfolio solutions at Satrix, Jason Swartz. In the first application, we empowered the investor to diagnose their existing portfolio into factor exposures. This application represents the next logical step: doing something about those factor exposures.
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7 June 2017With factors constructed to have characteristics which historically explain excess returns, active managers typically embed these characteristics in their investment process through well-known strategies such as Value, Momentum, Quality, Size and Low Volatility. A useful exercise, and the subject of this article’s application, is to understand which combination of these factors is needed to best replicate an active manager’s return through time.
Factors are intuitive, well understood and measurable investment ideas that explain stock behaviours over long periods of time. They are critical in helping investors achieve their investment goals, be they generating above-market returns, managing risk or enhancing diversification.
Factor investing can be defined as a systematic approach to investing strategically by targeting these broad, persistent and recognized drivers of excess returns.