We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage.
To dismiss this message and allow cookies to be used, please click "Continue".



Twitter board

Follow us
  • My week on Twitter 🎉: 4 New Followers. See yours with https://t.co/mCw3VcMQGw https://t.co/odYllgQghg2 days ago
  • Friday View: Border to Coast launches UK equity tender - Rentokil Trustee faces fine - Gleeson directors banned - P… https://t.co/wx2SJ0bGfG4 days ago
  • Shareholder engagement: It’s good to talk For responsible investors talk isn’t cheap. Not only does research sugges… https://t.co/imwrezJuKJ4 days ago
  • Friday View: PA's DB scheme signs buy-out deal - PIC invests in Midlands housing association - Newton Video on Emer… https://t.co/GbWDdyENlN11 days ago
  • RT @minerva_ESG: Hey, all #ESG and#corpgov tweeps, lend a hand to @portfolio_inst important opportunity to support investors' understanding…12 days ago
  • We want to know your appetite and understanding for ESG! Please click the link to take our 5 minute survey to tell… https://t.co/SsVgQzEKIc12 days ago
  • RT @AonRetirementUK: Great event, thanks for hosting @portfolio_inst. Inspired location too! https://t.co/we7Ou46ns312 days ago
  • Full house at our Portfolio Prepared event, Oliver Hamilton Illiquids specialist @AonRetirementUK discusses conside… https://t.co/F0qPFPjUSP13 days ago
  • West Midlland Pension Fund’s Jill Davys: “I am reluctant to overpay for assets” Assistant director of investments a… https://t.co/YHtEIU5BSN15 days ago
  • Friday View: DWP plans ÂŁ1m fine for "reckless" sponsors - Veolia appoints actuary - TPR fines Smart Pensions - UK s… https://t.co/9kUsw6mric18 days ago
  • RT @NewtonIM: Take 5 minutes to complete the @portfolio_inst ESG survey, which is part of its 'Raising Standards in ESG' initiative, and sh…18 days ago
  • This months cover story: Carillion: Lessons for trustees ''The collapse of the construction giant raises questions… https://t.co/L48HDqT0lB19 days ago
  • RT @PensionsSion: Portfolio Prepared? Join us and @portfolio_inst on 4th July 2018 to hear presentations from leading professional #trustee…19 days ago
  • Breaking: DWP proposes ÂŁ1m fine for "reckless" DB sponsors https://t.co/7rsDaGgS5v #DWP #DBWhitepaper #TPR https://t.co/YQqy9Qr7tN21 days ago
  • Our latest Roundtable: Factor Investing ''Pursuing value, momentum, quality or low volatility strategies in bond an… https://t.co/qugefevAN421 days ago
  • My week on Twitter 🎉: 2 Mentions, 3.3K Mention Reach, 5 Likes, 6 Retweets, 7.76K Retweet Reach. See yours with… https://t.co/IZfviidt4H23 days ago
  • Friday View: Trustees feel the heat over climate change - bankers' pensions back in black - TPR suspends trustee -… https://t.co/kUKa8QUF9w25 days ago
  • Increased regulatory oversight will be risk-based, TPR keyperson will meet schemes deemed riskier several times a y… https://t.co/wUiKPGESaU27 days ago
  • Lesley Titcomb, TPR chief executive says change is on its way, the regulator will increase oversight between valuat… https://t.co/Wu8Pv6TfqS27 days ago
  • Join us and @AonRetirementUK on the 4th of July at the luxurious Victorian Bath House featuring educational presen… https://t.co/r1abr8Qls028 days ago


Factor investing

Latest Roundtable

Factor investing

Fixed income factors

Factor investing

Fixed income is the new frontier for factor investing. Pursuing value, momentum, quality or low volatility strategies in bond and credit markets is yet to reach the levels of popularity enjoyed on the equity side of portfolios.

This could be about to change. Pension scheme trustees are a cautious bunch and so many could already be looking to lock in the gains recorded in equities last year.

Indeed, the combined pre-tax profit of the FTSE 350 reached a record ÂŁ153.8bn in 2017. Growth continued into the first three months of 2018 with dividends up 7.6% year-on-year to ÂŁ16.7bn.

Bonds are the default market for those with a low tolerance for risk, but with yields on UK government debt at a 1.53%, some may be lured slightly higher along the fixed income risk spectrum.

This is where consultants need to explain the virtues of using factors in fixed income. The sales pitch is usually along the lines of: “You could beat the benchmark and pay lower fees than you would for an active manager.”

This sounds attractive, but this is a young market and youth has its teething problems. Factor investing is based on economic and corporate fundamentals, but some investors point to a lack of data in this market, especially at the issuer level.

There is clearly some way to go before the level of academic and broker research on factors in the debt and credit markets reach parity with the equity markets.

The investors and consultants we brought together to discuss this topic also pointed to problems finding the right people to design factor strategies.

It appears that you cannot simply replicate in fixed income what works in equities. This is a market that has to be approached in a new way and it will take time to boost its popularity. Fixed income is the next challenge for the factor investing industry.

Are fixed income factors up to the challenge?

Are fixed income factors up to the challenge?

Andrew Peach, senior consultant, Aon

Factor investing in equities has been a rapidly expanding segment of the investment universe and we expect this momentum to carry on as implementation methods and research evolve.

Read more
Factor investing in bonds: Beyond duration, currency and credit risk

Factor investing in bonds: Beyond duration, currency and credit risk

Olivier Laplénie (pictured), head of quantitative fixed income management, BNP Paribas Asset Management Charles Cresteil, quantitative investment specialist, BNP Paribas Asset Management

Read more
Strength in numbers

Strength in numbers

Lynn Strongin Dodds

Multi-factor funds prove that being popular is not easy. Lynn Strongin Dodds looks at how to navigate the complex world of next generation smart beta products.

Read more

Kindly sponsored by:

If you are interested to participate in one of our future roundtable discussions please contact us for further details.

John Waterson
Head of sales UK
T: +44 20 78228567

Friday View

Friday View

Shareholder engagement: