Invesco Quantitative Strategies - CIO Update H1 2021

After an unprecedented year 2020, global economic activity broadly rebounded in the first half of 2021 as vaccination programmes accelerated and Covid-19 cases declined. Also, the factor environment has brightened significantly, both on a stand-alone factor basis as well as when combining factors to multi-factor strategies. Most prominently, Value has embarked on its long-awaited performance recovery. While still in its early days, in our view, multi-factor performances have benefitted greatly from the strong initial Value rebound. November 2020 has marked the starting point for investors turning towards cheaper valuations against the backdrop of conviction for a reopening and, hence, strengthening economy.