Factor inflation—there are over 400 documented factors to date that theoretically allow institutional investors to target specific risk-return objectives. But many of these factors are simply the byproduct of data mining and do not have investment utility. Furthermore, reconstitution policies of index providers can leave money on the table. How do investors address the shortcomings?
Eduardo Repetto, Ph.D., CIO-Avantis Investors® by American Century Investments® joined IPE to share how active management could be systematized in an effort to deliver the benefits associated with indexing and factors while removing artificial constraints.
References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.