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Market weekly – Multi-factor equity investing – Turning the corner after a difficult 2020

Podcasts

Raul LEOTE DE CARVALHO
 

Underperformance of multi-factor equity investing in 2020 has led some investors to question the strategy. Raul Leote de Carvalho, deputy head of our quantitative research group, discusses the reasons behind the underperformance with Daniel Morris, chief market strategist.

The conversation focuses on the findings of a new research paper by the quantitative research group. This paper, entitled “Equity Factor Investing: Historical Perspective of Recent Performance” provides an extensive analysis of why we think the outlook for multi-factor investing is positive.

This Market weekly is part of the BNP Paribas Asset Management podcast series on our investment views and strategies.

If you need further information on our strategies or investment policies, please contact your dedicated client relationship manager.

Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. The views expressed in this podcast do not in any way constitute investment advice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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