Invesco is a global investment management firm and a major practitioner of factor investing. Launched its first quantitative strategy in 1983.
Role in factor investing
Invesco positions factor investing as a third pillar alongside traditional active management and passive indexing. The firm conducts the annual Invesco Global Factor Investing Study (with NMG Consulting), which in 2018 found over 70% of institutional investors using factor strategies and over 60% planning to increase allocations.
Invesco’s factor investing practice spans both active quantitative strategies (with proprietary, continually enhanced factor models) and index-based (ETF) products. They apply factor investing across equities and fixed income.
Key contributions in the collection
- Warren & Quance, “Foundational Concepts for Understanding Factor Investing” — practitioner whitepaper covering macro vs. style factors, the six key equity factors, criteria for investment factors (persistent, pervasive, robust, distinct, tradeable), factor cyclicality, and the third-pillar framework. See factor-investing-overview.
Related pages
- factor-investing-overview — synthesis of Invesco and other factor investing surveys
Sources
- Foundational concepts for understanding factor investing (File)