Invesco Global Factor Investing Study 2022

Invesco Global Factor Investing Study 2022

The Invesco Global Factor Investing Study is a uniquely large and comprehensive examination of global factor investing – a form of investing in which securities are chosen based on attributes (commonly termed ‘factors’) which have tended to offer favorable risk and return patterns over time.

Factor Investing: a core part of the investing landscape

We explore the state of factor investing with four themes and from a series of deeper conversations with a few extensive factor users, raise possible future trends within the factor investing space:

  1. Equity factor faith rewarded: market turmoil highlights value of factors in managing risk
  2. Environmental, Social and Governance (ESG) performance challenges drive interest in applying a factor approach to ESG
  3. End of the fixed income bull market1 sees investors looking to factors for new sources of return potential
  4. Accelerating rate of change in markets highlights the benefits of tactical tilting to a long-term, diversified multi-factor approach

Click below for an in depth look into each theme.

Theme 3

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

In our third theme, we examine how and where factor investing is being used within fixed income. The application of factors within fixed income is nearly universal, and we find the potential end of the fixed income bull market has led to accelerating levels of demand for a factor approach. In particular, factors are seen helping to manage volatility and as an aid in delivering more diversified sources of return potential.

Theme 4

Accelerating rate of change in markets highlights the benefits of tactical tilting to a long-term, diversified multi-factor approach

In our fourth theme, we explore approaches to implementation and find four-fifths of factor investors now adjust factor weights through time. This is driven by the varying performance of different factors over the economic cycle and desire to balance out exposures across the portfolio. We note many investors are using factor products both tactically and strategically and this differentiation plays an important role in product selection.

Read the full study below

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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.

Sample and methodology

The fieldwork for this study was conducted by NMG Consulting’s strategy consulting practice. Invesco chose to engage a specialist independent firm to ensure high-quality objective results. Key components of the methodology include:

  • A focus on the key decision makers, conducting interviews using experienced consultants and offering market insights
  • In-depth (typically one hour) face-to-face interviews using a structured questionnaire to ensure quantitative as well as qualitative analytics were collected
  • Results interpreted by NMG’s strategy team with relevant consulting experience in the global asset management sector

In 2022, the seventh year of the study, we conducted interviews with 151 different pension funds, insurers, sovereign investors, asset consultants, wealth managers and private banks globally. Together these investors are responsible for managing $25.4 trillion in assets (as of 31 March 2022).

This year, the core study was supplemented with 10 additional in-depth interviews with highly experienced factor users to better understand how factor investing has evolved and is expected to continue to develop.

In this year’s study, all respondents were ‘factor users’, defined as any respondent investing in a factor product across their entire portfolio and/or using factors to monitor exposures. We deliberately targeted a mix of investor profiles across multiple markets, with a preference for larger and more experienced factor users.

Institutional investors are defined as pension funds (both defined benefit and defined contribution), sovereign wealth funds, insurers, endowments, and foundations.

Retail investors are defined as discretionary managers or model portfolio constructors for pools of aggregated retail investor assets, including discretionary investment teams and fund selectors at private banks and financial advice providers, as well as discretionary fund managers serving those intermediaries.

Invesco is not affiliated with NMG Consulting.


  • 1Defined as a financial market where prices are currently rising or expected to rise

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

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.