Investors give a cautious welcome to factor investing

Investors in Asia and the US have welcomed strong performance of factor investing strategies this year, led by value, but are not generally increasing allocations. Led by a turnaround in the performance of value – which, for many years, has underperformed market cap – factor strategies have showed strong returns so far in 2022. Factor approaches select stocks according to attributes, or factors, that have tended historically to offer favourable risk and return patterns. Besides …