Factor Investing: A New Paradigm For Superannuation Funds
Part 1 below is an introductory video explaining what factor investing in an equity portfolio is, and why superannuation funds may be interested.
With the basics of factor investing established, Part 2 outlines the findings of our latest factor research paper, and discusses how to build a smart factor portfolio so as to reduce unintended risks that can arise in more naively constructed portfolios. In short, this is the ‘How to do it’ video to watch, once you’ve decided that you want to access a particular factor exposure (or combination of factor exposures).
For those already familiar with factor investing, the paper below explains, in detail, how factor investing changes the landscape for super funds and their investment managers. The paper examines the use of optimisation techniques and constraint setting, to reduce unintended risks that can arise from a naively constructed factor portfolio.