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Improving your risk and return profile.

A strategic view on factor-based investing

The asset management industry is being transformed around factor-based investing. Much like the allocation to stocks and bonds is determined by a strategic view on the equity risk premium, the allocation to major style factors such as value and momentum should also be driven by a strategic view on factor risk premiums. This strategic view contrasts with the often-followed approach where factor-based investing is brought in at an operational level and viewed as part of the tactical implementation.

Improving your risk and return profile

In collaboration with Professors Jules van Binsbergen (Wharton School University of Pennsylvania) and Ralph Koijen (NYU Stern School of Business) we have developed a unique factor-based ALM solution which brings the strategic view to life. It consists of two components:

  1. A benefit analysis to measure, improve and test investor specific strategic factor exposures
  2. A strategic factor exposure service necessary to obtain investor specific exposures

These components of our factor-based ALM solution help investors to create a better risk and return profile, thereby making it more likely that they will be successful in achieving their objectives.

Should you want to learn more about what our new Factor-based ALM solution could mean for your organization please do not hesitate to contact us via or via your regular contact person at Ortec Finance.

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