Wyndham Hotels & Resorts
Factors
Report

Factors

Finding a Place in Institutional Investors’ Arsenal

The Economist Intelligence Unit
EIU, 2016
Get the Report

Read or listen offline

Amazon Kindle
auto-generated audio
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
auto-generated audio

Editorial Rating

7

Qualities

  • Innovative

Recommendation

The 2008 financial crisis prompted institutional investors to re-examine the value of conventional portfolio construction based on diversification by asset class. Many have turned to factor-based investing as a way to decrease risk, raise returns and reach investment targets. These strategies incorporate variables that influence risk, such as inflation and company size. This 2016 survey from the Economist Intelligence Unit reveals how widely institutional investors are using factors, whether results are meeting expectations and what lingering doubts experts have about the approach. While the report is dense with raw survey results, getAbstract recommends it to executive money managers in private and public organizations.

Summary

Factor-based investing employs portfolio models that incorporate broad influences on asset value; these variables include “economic growth, inflation, volatility and company size.” The approach seeks to improve on portfolio construction methods that rely on asset class diversification. Factors can add accuracy and consistency to investment allocations, resulting in decreased risk, increased returns and realization of particular targets.

In early 2016, a worldwide survey of 200 top investment executives sought to learn about the experts...

About the Author

The Economist Intelligence Unit is an independent research and analysis organization.

Comment on this summary or Start Discussion

More on this topic

By the same author

8
Report
Industries in 2019
8
Report
Order and Progress?
8
Report
The Global Liveability Index 2018
8
Report
The Hinrich Foundation Sustainable Trade Index
9
Report
Preparing for Disruption
8
Report
Trade War Brewing?
7
Report
A Digital Future
8
Report
M&A in a Changing World
7
Report
Changes on the Institutional Investment Horizon
7
Article
The Marriage of High Tech and High Finance
9
Report
Innovation in Investment
9
Article
China’s Supply-Side Structural Reforms
8
Article
Symbiosis
7
Article
Worldwide Cost of Living 2017
7
Article
2016 The Year in Crisis
9
Report
Innovation in Life Sciences
9
Report
Democracy Index 2016
9
Report
The Chinese Consumer in 2030
7
Report
Towards Disaster-Risk Sensitive Investments
8
Report
Industries in 2017
8
Report
Managing Risk in Challenging Economic Times
7
Report
Terms of Trade
8
Report
The Workforce of the Future
8
Report
Global Microscope 2016
8
Report
“One Belt, One Road”
7
Report
US Mid-Market Enterprises
8
Report
Global Food Security Index 2016
8
Report
Latin America’s Innovation Gap
8
Report
The Hinrich Foundation Sustainable Trade Index 2016
8
Report
Out and Down
7
Report
Retail Banking
8
Report
Europe Stretched to the Limit
7
Report
Worldwide Cost of Living 2016
7
Report
The Well-Connected Treasurer
8
Report
All That Glitters
7
Report
Governance, Cost and Sustainable Investing
8
Report
Democracy Index 2015
8
Report
Industries in 2016
7
Report
Rethinking Risk in a More Uncertain World
8
Report
The Disruption of Banking
8
Report
The Never-ending Sale
8
Report
After the Freefall, What to Expect from Commodity Prices
8
Report
A Delicate Stage
7
Report
Cultivating Sources
7
Report
The Wealthy Migrant
7
Report
Financing the Fragile Economic Recovery
8
Report
Long-Term Macroeconomic Forecasts
9
Report
The Cost of Inaction
8
Report
The Blue Economy
8
Report
Chinese Investment in Developed Markets
7
Report
Private Sector Development in the Caribbean
8
Report
Prospects and Challenges on China’s ‘One Belt, One Road’
8
Report
Generation ¥
8
Report
Future Cities
8
Report
Digital Adoption in the Insurance Sector
7
Report
Future Factors
8
Report
Spotlight on the New Wealth Builders
7
Report
The Road from Principles to Practice
8
Report
Singapore
8
Report
Worldwide Cost of Living 2015
7
Report
Redefining Banking to Survive and Thrive in a Digital World
7
Report
The Future of Business: Supply Chains
8
Report
Democracy Index 2014
8
Report
Still Making It
7
Report
Retail Banks and Big Data
7
Report
Navigating the Waters of Foreign Exchange and International Payments
8
Report
Industries in 2015
7
Report
Global Challenges in Asset Management
8
Report
The Business of Cheaper Oil
7
Report
China Going Global Investment Index
6
Report
Financial Services: United States of America
8
Report
Global Microscope 2014
7
Report
Evolution of Work and the Worker
8
Report
Cyber Incident Response
7
Report
Business Environment Rankings
8
Report
The Business Environment in Gulf Co-Operation Council Countries
7
Report
Consumer Goods and Retail
7
Report
United Kingdom
8
Report
Financial Services
8
Report
Energy
7
Report
Japan
7
Report
Germany
7
Report
Future Factors
7
Report
Value-Based Healthcare
7
Report
Worldwide Cost of Living 2014
9
Report
China’s Urban Dreams, and the Regional Reality
8
Report
The Search for Growth
8
Report
Brazil
8
Report
Is 75 the New 65?
8
Report
Succeeding in a Value-Based Environment
8
Report
Industries in 2014
8
Report
The End Isn't Nigh
8
Report
Diminishing Dependence
8
Report
China
8
Article
World Risk Alert April 18th 2013
8
Report
Telecommunications
8
Report
Women’s Economic Opportunity 2012
7
Report
Consumer Goods and Retail

    Learners who read this summary also read

    8
    Book
    Efficiently Inefficient
    7
    Book
    The Art of Asset Allocation
    7
    Report
    Innovations in Long-Term Capital Management
    6
    Book
    Institutional Investors
    9
    Book
    Searching for Alpha
    8
    Book
    Hedge Fund of Funds Investing

      Related Channels

      Business
      Economics
      Financial Industry
      Financial Markets
      Industries