Benefits of factor investing

Ashley Lester, Head of Multi-Asset Research at Schroders, talks about the benefits of factor investing, an approach to investment that breaks assets into their underlying sources of return.


Factors are investment strategies which can provide positive returns over the long run. The premise of factor investing is to provide diversification and transparency relative to traditional approaches to portfolio construction. Breaking assets into their underlying return drivers allows us laser-like focus on the sources of return in a portfolio and the same process can also add diversification by potentially allowing us to access new sources of return including style factors such as value and momentum.