Factor-based investing has gained considerable traction over the past decade. Concepts such as ‘factor premiums’ or ‘smart beta’ have become popular buzzwords, and now appear frequently in mainstream financial media. Prominent institutional investors have also publicly embraced allocation to well-known factors, like value, momentum or low volatility.
As a pioneer in this field, Robeco has carried out extensive empirical research on the existence of factor premiums as well as on how to implement factor-based strategies, both in equity and fixed income markets.
In this booklet, we address ten recurring challenges asset owners tend to be faced with when considering an explicit allocation to one or more factors. The different questions answered in this booklet were determined based on the concerns raised by respondents to an annual survey of asset owners carried out by index provider FTSE Russell regarding smart beta, as well as feedback from our clients.
This information is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation.
The contents of this document have not been reviewed by the Monetary Authority of Singapore (“MAS”). Robeco Singapore Private Limited holds a capital markets services license for fund management issued by the MAS and is subject to certain clientele restrictions under such license.
An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.
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