Insight

Risk and Reward Q1 2024

16 April 2024
Invesco
Risk and Reward Q1 2024
Articles
Rethinking 60/40 – systematic strategies to weatherproof balanced portfolios
1

60% equites and 40% bonds – the ‘60/40 portfolio’ – is the longstanding archetype of a balanced portfolio. We examine the foundational 60/40 portfolio in detail and show how its risk and return profile can be further enhanced through factor and risk overlays.

Unlocking the edge of European outperforming funds
2

We see a considerable performance differential between funds systematically exposed to established factors and those without a factor focus. On average, funds with positive factor exposures have a better chance of outperformance – and the more factors are used, the better the results.

THEORY AND PRACTICE: A perspective on the state of modern finance with Brian Bruce
3

In our new series Theory and Practice, Kenneth Blay talks to asset management professionals who not only have a proven track record but are also leading academics. His first guest is Brian Bruce, founder of Hillcrest Asset Management and editor of various journals in the field of finance and investment.

In this quarter Risk and Reward investigates the role factors can play in improving traditional 60/40 portfolios, how positive factor exposure drives performance in European funds, and we interview Brian Bruce, founder of Hillcrest Asset Management, discussing his position on factor investing.

To read the articles, download this quarter’s Risk and Reward.

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