Traditionally a portfolio is constructed by distribution over asset classes (asset allocation), followed by allocation to subsegments such as regions or sectors. Factor investing applies strategic allocation according to factors.
The example below illustrates this process of moving from traditional strategic asset allocation towards strategic distribution according to factor premiums for equities.
A factor portfolio divides the equities class into premiums such as low volatility, value and momentum, irrespective of regions and sectors.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.