How factor strategies can help enhance portfolio returns and risk control
These strategies target specific investment attributes such as value, size, momentum, low volatility, low investment and high profitability
THE benefits of factor investing as stand-alone strategies are well documented. Less well known is the positive impact factor strategies can have when they are added to institutional investors’ completion portfolios.
A completion portfolio is a strategic programme designed to complement existing holdings and fill in any gaps or inefficiencies within an asset owner’s overall portfolio.
By employing factor strategies at the plan level, asset owners can fine-tune their allocations to suit their specific objectives in an efficient and cost-effective manner. I will discuss how factor strategies can be effectively utilised within completion portfolios to enhance plan performance and risk control.
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