Risk is not rewarded with higher returns in the equity markets


Factor investment has since the global financial crisis in 2007 attracted increasing interest among investors. At the same time, significant growth has occurred in new more or less exotic factors driven by big data and increased computing power. However, academic literature has found only a handful of factors that are reliable and applicable. One of these is low volatility.

See portfolio manager Brian Kirk explain why historic returns are putting pressure on the traditional CAPM-model and why low volatility equities are important components in a well diversified portfolio, and read our new publication on the topic here