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26 January 2018

Tabbforum Interview #2: Factor Investing – the Need for Transparency

Style Research’s Bernie Nelson sits down with Larry Tabb of TABB Group for the second TabbFORUM video on factor investing. Missed part one? Check it out here.

Style Research has been creating and evolving style, risk, and performance analytics for portfolios for 20 years. In this time, we’ve seen a rise in the popularity of factor investing, which has caused an increase in complexity and opacity.

In this second TabbFORUM factor investing interview, Larry Tabb continues his discussion with Style Research’s Bernie Nelson, President, North America. Nelson dives deeper into the world of factor investing, the issues investors are facing and what he foresees as the most significant trends for 2018.

Nelson examines the heightened pressure on active managers, how investors will need to increasingly position their portfolios using factor perspectives, and most importantly, the growing need for portfolio transparency.

“There’s a need for transparency into the holdings of underlying funds,“ Nelson explained. “Not just, ‘How much of Apple do I own?,’ but, ‘What does this all mean when I lump it together? What am I being exposed to?’”

Style Research’s Peer Insights™ strengthens investors’ ability to evaluate funds using factors across the entire competitive landscape, while also providing a more transparent view of what is driving a specific portfolio.

Want to hear more about the vital role transparency will play in future of factor investing? Check out Bernie Nelson’s full interview with Larry Tabb on TabbFORUM.