Advanced factor investing for sustainable outcomes
Putting our clients at the centre of solution design, our sustainable equity strategy seeks to address client needs for efficient, sustainable, cost effective exposure to equity markets.
Developed and managed by Rosenberg Equities, our quantitative equity team, our sustainable equity strategy is one of our family of Advanced Factor strategies.
What is factor investing?
Factor Investing aims to offer investors a cost effective and transparent way to improve risk and return by capturing specific equity characteristics such as quality, low volatility, value and momentum.
Few asset managers put ESG (environmental, social and governance) beliefs at the heart of their investment philosophy, but our commitment is such that we have integrated ESG criteria into our core investment process across all of our strategies. We are committed to a more sustainable form of equity investing and believe that this will deliver better investment results in the long term. Find out more about Rosenberg Equities and ESG.
Reasons to invest in Sustainable Equity
Our Sustainable Equity strategy seeks to generate sustainable long-term returns for clients, while mitigating equity market risk:
- Forward looking, outcome-focused approach - designed to avoid exposure to poorly compensated equity risk
- Diversifies intelligently - not market capitalisation weighted
- Fully integrated ESG – to help reduce risks and deliver sustainable long-term value
- Low volatility* - blends factor exposures, Low Volatility and Quality, to help deliver robust performance over full economic cycles
- Relatively low cost - relentless focus on minimising fees/transaction costs
- Transparent – a sophisticated yet straightforward solution that facilitates performance and risk understanding.
Why consider our Advanced Factor approach?
Anchored in company fundamentals our advanced factor approach offers investors a potentially better way to invest in equities than traditional passive or low volatility approaches:
- Harnesses Rosenberg Equities' detailed fundamental analysis and proprietary factor insights
- Uses value-added proprietary data and machine learning technology which we believe improves investment outcomes
- 15 years' experience managing outcome-oriented, global portfolios that target desirable fundamental features**
Potential risks associated with this strategy
- Market risk and risk of loss of invested capital
- Equity risks
- Risks linked to global investments
- Risks linked to systematic methods and modelling
How to blend factors to invest sustainably
How do you like your coffee? Whatever you prefer, all coffees contain a small number of key ingredients. Factor investing may sound complex, but in essence, it’s nothing new. For decades, investors h ...
Global Factor Views
Despite Covid-19 lockdowns being eased in many countries, the crisis continues to hinder global economic activity. Authorities across the world have mounted a significant response using a combination ...
The language of a crisis
Alongside rigorous financial statement analysis, the detailed evaluation of text data has become an important part of Rosenberg Equities’ research and investment process.
* Relative to the standard global equity universe
** Source: AXA IM as at 30 June 2019, since 2004.
This page is for informational purposes only and does not constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment, legal or tax advice. The strategies discussed herein may not be available in all jurisdictions and/or to certain types of investors.
The firm seeks to achieve its clients’ investment objectives primarily through reliance on the modelling of proprietary and third party financial and non-financial data, information, and considerations, the sources, weights, and implementation of which may be subject to change and/or the discretion of the firm regardless of whether described herein or elsewhere.
Opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. No guarantee, warranty, or representation is given as to the accuracy or completeness of this material. Reliance upon information in this material is at the sole discretion of the reader. This material does not contain sufficient information to support an investment decision.