As smart beta or factor-based investments become more widely accepted, there is an ongoing need for education. Many investors have not correctly categorized their specific factor investments and may have unintentional exposure to various other attributes.
“You’ll find an institutional investor – well I’ve really have a value focus. Let’s look at that portfolio. Did you actually realize that there was maybe 20 percent in quality or 20 percent in low volatility. Was that an intended decision you made at the beginning? And at a basic, that’s just new information,” Draper said.
“So it’s really starting first about attribution and then helping to educate about putting factors together better on a portfolio level,” Draper added.
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