Four years of beating the Beta (big time)
– The result is a proof that our model is working. It was good before the strategy revision, but the fine-tuning of the strategic approach has taken us from good to great, says Andreas Poole, Fund manager, Storebrand Multifaktor.
Factor investing on the radar and on the rise
Factor investing strategies are increasingly on the radar and the demand for ‘smart beta’ funds is continuously growing.
One rising star on the smart beta sky is the award-winning Storebrand Global Multifaktor with an impressing track record of beating the beta. The fund has had a yearly appreciation of 19.4 percent (after fees), corresponding to 2.2 percent in excess return (pr 31st of october).
– We are very happy with the development of the fund and are constantly in search of companies that have proven to yield higher returns over time. By systemizing the selection criteria and benefiting from companies different characteristics we have developed a sound method to identify the winners, working well over time under different market conditions, Poole continues.
Excess return through systemization
The aim of Smart Beta or Factor Management in general is to create excess return through systemization and by finding the right balance between return, risk, price and the different factors in order to get the optimal composition for the specific fund.
– The best thing is that you get an active fund at the price of a passive, which is possible because of how the fund is designed and constructed. Storebrand Global Multifaktor has yielded a level of return in line with a well performing active fund, but priced in line with an index fund making it an attractive option for different categories of investors, he concludes.