Active management is under pressure after having suffered from underperformance over the long term, as well as recent years. Investors have become somewhat disillusioned as a result and are turning to other solutions. Large investment management houses also face investor disillusion as well as fee compression. Furthermore, the need for differentiation of products in a crowded marketplace is a constant theme.
Factor investing is seen as the answer to some of these problems and there has been significant recent interest in factor-based products as a result. But why is factor investing seen as the solution? And how can a fair factor analysis be performed in order to choose between the multitude of products?
Find out more about the drivers behind the popularity of factor investing, and how to best compare the entire gamut of factor-based products now available on the market, by watching our Style Analytics Education Video on ‘Why is factor investing on the rise?’