Investment ‘factors’ are also concentrated
Apple, Amazon and Microsoft appear in the top 10 stocks for three different factors
Quality
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Value factor shines as past winners turn into losers
Value stocks were the stellar performers in all equity markets in 2016. The three factors that had shown most outperformance in recent years, however, disappointed investors last year.
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Go for a Barbell-strategy, in US equities
European investors who are looking to increase their exposure to US equities are often looking to do so from a safe haven perspective. But they would do well staying clear of quality companies, unless they believe a recession is imminent.
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Schroder ISF QEP Global Quality – Freddy van Mulligen’s favourite
Freddy van Mulligen, who is in charge of external manager selection at Achmea Investment Management in the Netherlands, is a dedicated factor investor. For the quality bucket of his equity portfolio, he relies on the Schroder ISF QEP Global Quality fund.