The investments factorials are useful against the volatility of the financial markets and continue on their trend growth constant. This was revealed by the report “Invesco Global Factor Investing Study”, an annual event now in its seventh edition. The study is based on interviews with 151 institutional and retail factor investors who collectively manage more than $ 25.4 trillion in assets.
According to this year’s edition, respondents expect the strategy factorials outperform in a context inflationary characterized by low economic growth. Respondents also believe that the current market environment makes factor investing in fixed income more attractive as the best way to manage volatility and diversify portfolios.
The persistent scenario inflation e rate hike interest in the past 12 months, has significantly impacted the investment environment by forcing respondents to reconsider their portfolio positions, including factor exposures. Despite these challenges, respondents generally still believe factors are ideal for managing risk in market turmoil: 67% admit that factor investing has helped them manage market volatility over the past year, compared to to 28% four years ago. A similar percentage, 64%, say they have developed greater confidence in factors in the previous 12 months.
At the same time, the allocations factorials continue to rise: 41% of respondents have in fact increased them over the last year and 39% plan to do so next year. Only 1% of respondents have reduced factor allocations in the past year. Respondents predict that value, low volatility and quality will be the brightest factors over the next 12 months. A majority (> 80%) believe their factor allocations matched or outperformed their respective active fundamental strategies, while 64% said their factor allocations matched or outperformed market-weighted strategies.
Georg AlsacesSenior Portfolio Manager, Quantitative Strategies di Invesco he stated: “The confidence in factor investment strategies, in addition to persisting in phases of volatility, has strengthened, as evidenced by the recovery in performance over the last 18 months”. At the same time, respondents said they were more likely to review and change their factor strategies. 41% said they change factorial strategies rarely (every 3-5 years), compared to 66% in 2021. Currently, 43% of respondents change factorial strategies quite frequently (every 1-3 years), compared to to 16% in 2021.
Therefore, in a historically very complicated moment for the financial marketsan investment strategy as elaborate as that factorial it seems to work and to gather support. Because the objective of those who invest is always and in any case to make the most of their assets. Even with the stormy “sea”.