This paper was jointly published by Greenwich Associates and Qontigo
Factor investing is an investment strategy in which securities are chosen based on certain characteristics with the goal of achieving a given investment outcome.
Factor investing in fixed income is earlier on the adoption curve relative to equities. Over the past 50 years, equities have moved to smart-beta investing, which is now mainstream and well understood.
The stage is set: The sophistication of institutional investors already embracing factors to review and understand manager performance in equities will transition fixed income and multi-asset portfolios in the near term.