To the extent that they have an appreciable rationale and supportive empirical evidence, factors can be useful as part of a long-term strategy, and most investors probably already have factor exposure implicitly through style bias in their active managers.
Factors can be a useful analytical tool to aid our understanding of investments, but they have little value as timing tools or as replacements for a well-thought-out, holistic investment strategy.
Article continues after advert
Ben Seager-Scott is head of investment strategy and research at Tilney Bestinvest
Page 2 of 2
