Mercer European director of strategic research Phil Edwards and other noted experts explore the governance, cost and time saving implications of using a factor-based investment approach in this thought-provoking video series, created in partnership with Asset.tv.
There has been an overall trend to reduce the fee that investors are paying and that has been part of the driver that has moved towards factor investing. We now have indices that investors can track, quite cheaply through traditional passive managers, thereby reducing the fee burden. Investors don't want portffolios that are over-populated by large numbers of managers that are very difficult to monitor, and so factor investing through indices does offer some way of helping to reduce or control that governance challenge
In the last of these videos discussing factor investing, Phil and others discuss diversification in a portfolio and how factor strategies might help, with pointers to consider when constructing a portfolio.
What We Do
The complexities, nuances, and dependencies that factor into every investment decision grow exponentially each year. To effectively manage and grow investments requires a higher level of rigor and specialization. It’s a level of proficiency few organizations can achieve — and it’s what sets Mercer apart. Our global team of 1,200 professionals, including 120 manager researchers, provides in-depth knowledge in research, advice, and solutions few others can match.