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Active management

An investment strategy that does not invest according to a market-value-weighted index. This strategy often requires regular buying and selling transactions.

The objective of active management is to achieve an improved outperformance net of costs relative to the market.

Factor investing and active investing are closely related. If you choose to use one or more factors, you are choosing to invest actively relative to a broad market-weighted index.

Quantitative investing: invisible layers surface to deliver attractive returns
Quantitative investing: invisible layers surface to deliver attractive returns
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Passive management means that investments are made in all market segments. In contrast to factors with a positive premium, there are also factors with a negative premium, such as high-volatility equities. The idea of factor investing is to actively avoid these segments.

Low Volatility portfolios cushion macroeconomic risks
Low Volatility portfolios cushion macroeconomic risks
Beyond general downside protection, Low Volatility portfolios are effective in softening the impact of various sources of systematic risk.
03-10-2022 | Research
Academic insights into using machine learning for valuation
Academic insights into using machine learning for valuation
Machine learning (ML) mispricing models are designed to detect hidden nonlinearities that are important in predicting the fundamental value of stocks.
26-09-2022 | Research
Nowcasting growth to enrich the factors used for government bond selection
Nowcasting growth to enrich the factors used for government bond selection
We have added a quality measure for the selection of government bonds.
31-08-2022 | Insight