Scientific Beta

Enterprising Investor forum, CFA Institute: "The benefits of factor investing as stand-alone strategies are well documented. Less well known is the positive impact factor strategies can have when they are added to institutional investors’ completion portfolios. By employing factor strategies at the plan level, asset owners can fine-tune their allocations to suit their specific objectives in an efficient and cost-effective manner."

Enterprising Investor forum, CFA Institute 23/05/2024

Article by Joseph Simonian, PhD, senior investment strategist at Scientific Beta

"(...) The benefits of factor investing as stand-alone strategies are well documented. Less well known is the positive impact factor strategies can have when they are added to institutional investors’ completion portfolios. By employing factor strategies at the plan level, asset owners can fine-tune their allocations to suit their specific objectives in an efficient and cost-effective manner. In this post, I will discuss how factor strategies can be effectively utilized within completion portfolios to enhance plan performance and risk control. The symbiotic nature of these two commonly pursued goals in institutional portfolios begs the question, “Why wouldn’t you include factor strategies in your completion portfolio toolkit?” (...)"