• Factors can be thought of as categories of investment exposures that are expected to provide both return and volatility over time.
  • They may include macroeconomic factors like economic growth, interest rates, or foreign currency along with equity style factors such as size, value, or quality.
  • Identifying the factor exposures in portfolios with multiple funds can help uncover unintentional asset category weights.
  • This can be particularly important for model portfolios invested in global equity, multisector fixed income or global asset allocation products.
  • Evaluating factor allocations can help explain past performance and identify products that may pair well in the future.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

Investing involves risk, including risk of loss.

This material is provided for informational purposes only and should not be construed as investment advice.

The views and opinions expressed may change based on market and other conditions.

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results.