End of the fixed income bull market sees investors looking to factors for new sources of return potential

Invesco Global Factor Investing Study 2022

Theme 3

Advancements in data and research drive greater belief in the application of factors in fixed income
The end of the fixed income bull market accelerates demand for factors as investors search for diversification and better ways to manage heightened volatility 
Figure 1.1 Applicability of factor investing to fixed income, % citations

Do you think factor investing can be applied in fixed income? Sample size: 147

A number of investment factors have now been identified in fixed income and there is the data to suggest that they influence performance.

Retail investor, North America
Figure 1.2 Impact of market environment on attractiveness of factor investing in fixed income, % citations

How has the current environment (high inflation and prospect of rising interest rates) impacted the attractiveness of factor investing in fixed income? Sample size: 78

Passive and active implementation of factor strategies within fixed income portfolios drives demand for more products
Factor investing spreads across fixed income asset classes with high yield bonds set for the fastest growth
Figure 1.3 Fixed income factors targeted, % citations

Which investments factors are you targeting in your fixed income portfolio? Which macro fixed income factors are you using in your factor investing strategy? Sample size: 45

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    Invesco Global Factor Investing Study 2022

    By Invesco

    Understand the drivers of factor investing, investor experiences, and methods of implementation. Read the PDF now.

Investment risks

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Important information

  • Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.