Mega-cap tech stock dominance prompts big shifts in systematic investing
According to Invesco's ninth annual Global Systematic Investing Study, mega-cap tech stock performance has significantly impacted factor returns, leading systematic investors to adjust their strategies. The study, based on views from investors managing $22.3 trillion, reveals that 52% of investors have increased Value allocations in the past year to hedge against concentration risk.
The research shows 46% of systematic investors outperformed both traditional active approaches and market-weighted strategies. Investors are increasingly sophisticated in their approach, with 91% adjusting factor weights over time, up from 75% in 2023. There's also growing adoption of systematic strategies in alternative assets, with 40% now applying systematic approaches to real estate, up from 31% in 2023.
Secondo il nono studio annuale sulla investimento sistematico globale di Invesco, le performance delle azioni tecnologiche a grande capitalizzazione hanno avuto un impatto significativo sui rendimenti dei fattori, portando gli investitori sistematici ad adattare le loro strategie. Lo studio, basato sulle opinioni di investitori che gestiscono $22,3 trilioni, rivela che il 52% degli investitori ha aumentato le allocazioni nel settore Value nell'ultimo anno per proteggersi dal rischio di concentrazione.
La ricerca mostra che il 46% degli investitori sistematici ha ottenuto risultati migliori rispetto sia agli approcci attivi tradizionali che alle strategie ponderate per il mercato. Gli investitori sono sempre più sofisticati nel loro approccio, con il 91% che ha modificato i pesi dei fattori nel tempo, rispetto al 75% nel 2023. C'è anche una crescente adozione di strategie sistematiche negli asset alternativi, con il 40% che ora applica approcci sistematici agli immobili, in aumento rispetto al 31% nel 2023.
Según el noveno estudio anual de Invesco sobre Inversión Sistemática Global, el rendimiento de las acciones tecnológicas de gran capitalización ha impactado significativamente en los retornos de factores, llevando a los inversores sistemáticos a ajustar sus estrategias. El estudio, basado en las opiniones de inversores que gestionan $22.3 billones, revela que el 52% de los inversores ha aumentado sus asignaciones en Value en el último año para protegerse contra el riesgo de concentración.
La investigación muestra que el 46% de los inversores sistemáticos superó tanto a los enfoques activos tradicionales como a las estrategias ponderadas por el mercado. Los inversores son cada vez más sofisticados en su enfoque, con el 91% ajustando los pesos de los factores con el tiempo, frente al 75% en 2023. También hay una creciente adopción de estrategias sistemáticas en activos alternativos, con el 40% aplicando ahora enfoques sistemáticos en bienes raíces, un aumento del 31% en 2023.
인베스코의 제9회 연례 글로벌 체계적 투자 연구에 따르면, 대형 기술주 실적이 팩터 수익에 상당한 영향을 미쳐 체계적 투자자들이 전략을 조정하도록 이끌었습니다. 이 연구는 22.3조 달러를 관리하는 투자자들의 의견을 바탕으로 하며, 52%의 투자자가 가치 할당을 증가시켰습니다 이는 집중 리스크에 대한 헤지를 위해 작년 동안 이루어진 것입니다.
연구 결과 46%의 체계적 투자자가 전통적인 능동적 접근 방식과 시장 가중 전략 모두를 초과 성과를 기록했습니다. 투자자들은 점점 더 정교한 접근 방식을 취하고 있으며, 91%가 시간에 따라 팩터 가중치를 조정하고 있습니다 이는 2023년의 75%에서 증가한 수치입니다. 또한 대체 자산에 대한 체계적 전략의 채택이 증가하고 있으며, 40%가 현재 부동산에 체계적 접근 방식을 적용하고 있습니다 이는 2023년의 31%에서 증가한 것입니다.
Selon la neuvième étude annuelle d'Invesco sur l'investissement systématique mondial, la performance des actions technologiques à grande capitalisation a eu un impact significatif sur les rendements des facteurs, conduisant les investisseurs systématiques à ajuster leurs stratégies. L'étude, basée sur les opinions d'investisseurs gérant 22,3 billions de dollars, révèle que 52% des investisseurs ont augmenté leurs allocations en Valeur au cours de l'année passée pour se protéger contre le risque de concentration.
La recherche montre que 46% des investisseurs systématiques ont surpassé à la fois les approches actives traditionnelles et les stratégies pondérées par le marché. Les investisseurs deviennent de plus en plus sophistiqués dans leur approche, avec 91% ajustant le poids des facteurs au fil du temps, contre 75% en 2023. L'adoption de stratégies systémiques dans les actifs alternatifs est également en forte hausse, avec 40% appliquant désormais des approches systématiques à l'immobilier, contre 31% en 2023.
Laut der neunten jährlichen Studie zur globalen systematischen Investition von Invesco hat die Performance von Mega-Cap-Technologiewerten die Faktor-Renditen erheblich beeinflusst, was systematische Investoren dazu veranlasst hat, ihre Strategien anzupassen. Die Studie basiert auf den Ansichten von Investoren, die 22,3 Billionen Dollar verwalten, und zeigt, dass 52% der Investoren ihre Allokationen in Value erhöht haben, um sich im vergangenen Jahr gegen Konzentrationsrisiken abzusichern.
Die Forschung zeigt, dass 46% der systematischen Investoren besser abgeschnitten haben als sowohl traditionelle aktive Ansätze als auch marktgewichtete Strategien. Investoren sind in ihrem Ansatz zunehmend anspruchsvoll, wobei 91% die Faktor-Gewichtungen im Laufe der Zeit anpassen, gegenüber 75% im Jahr 2023. Zudem wächst die Akzeptanz systematischer Strategien bei alternativen Anlagen, wobei 40% nun systematische Ansätze auf Immobilien anwenden, ein Anstieg von 31% im Jahr 2023.
- 46% of systematic investors reported outperformance over traditional strategies
- 91% of investors now adjust factor weights, up from 75% in 2023
- Increased adoption in alternative assets: real estate (40% vs 31% in 2023), commodities (36% vs 26%)
- Strong performance in Momentum, Growth, and Quality factors
- Value factor underperformance
- Increased concentration risk in global equity markets
- Liquidity constraints in alternative asset classes
Insights
The findings reveal significant shifts in systematic investment strategies driven by mega-cap tech dominance. The 52% increase in Value allocations signals a defensive positioning against concentration risk, while the 46% outperformance rate of systematic strategies validates their effectiveness. The expansion into alternative assets is particularly noteworthy, with systematic approaches in real estate increasing to 40% from 31% and commodities to 36% from 26% year-over-year.
The trend toward shorter evaluation periods, with 32% of investors now using 2-3 year horizons, reflects the increasing speed of market changes. The integration of alternative data sources by 23% of investors suggests a growing sophistication in portfolio management techniques. These adaptations demonstrate the evolution of systematic investing in response to market concentration and volatility.
The study's findings carry significant implications for Invesco's business model and competitive positioning. Managing
The shift toward more frequent portfolio rebalancing and shorter evaluation periods could drive higher transaction volumes and fees. The emphasis on data integration and advanced analytics also suggests potential increased demand for Invesco's technological infrastructure and research capabilities, potentially supporting higher margins in their systematic investment products.
- Tech stock outperformance has led systematic investors to recalibrate their strategies.
52% of investors globally have increased their allocation to Value in the past year.- Investors are adapting faster to changing market conditions –
82% cite this as the key driver for pro-active factor allocation. - Investors' use of systematic strategies is increasingly sophisticated, with growing allocations to alternative asset classes such as real estate and commodities.
The findings come from Invesco's ninth annual Invesco Global Systematic Investing Study, Navigating complexity: the rise of systematic strategies in multi-asset portfolio construction, based on the views of 131 institutional and retail investors that collectively manage
Tech stock dominance requires systematic investing rethink
Invesco found factors aligned with the success of large tech companies such as Momentum, Growth, and Quality have performed exceptionally well over the past year, while Value underperformed1. Now, concentration risk has driven a turnaround with more than half (
"The continued growth of
Adaptability has enabled systematic investors to perform well in this environment. Over the past 12 months,
Need for adaptability drives increased sophistication
The need to react quickly has led to increased uptake of techniques that enable portfolios to immediately adapt to sudden changes in the macro environment.
The key driver for pro-active factor allocation, cited by
As markets become more changeable, investors' time horizons are also decreasing. While
The rise of alternative asset classes in systematic portfolios
Invesco found a clear trend towards more diverse systematic investor portfolios, including a significant uptick in the use of alternative asset class strategies. The study reveals
This diversification is enabling investors to build more holistic and integrated multi-asset allocation models. However, the application of systematic strategies to less liquid assets can create challenges, particularly considering liquidity constraints rank as the first- and fourth- most important considerations for institutional and retail investors respectively when building multi-asset portfolios.
Systematic investors are addressing this by using tools such as liquid proxies2 or derivatives, which enable them to adjust overall exposure to less liquid asset classes such as real estate, while retaining the ability to quickly rebalance.
"We're seeing higher allocations to private markets across the board, specifically within private credit and real estate," continued Mr. Haghbin. "The combination of these higher allocations and increased accessibility to a larger universe of cost-effective data has led more investors to adopt a systematic approach to alternatives that allows them to access traditionally less liquid asset classes more efficiently."
The data revolution continues
Underpinning the rise of increasingly diversified and sophisticated systematic portfolios is a data revolution transforming the way investors make allocation decisions. The availability of increasingly diverse data sources to inform portfolio allocations has made this possible.
While macroeconomic data (
About Invesco
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive, and alternative investment capabilities. With offices in more than 20 countries, Invesco managed
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Each entity is a wholly owned, indirect subsidiary of Invesco Ltd.
Methodology
Views and opinions are based on current market conditions and are subject to change.
In this study, all respondents were 'systematic investors', defined as investors that employ structured, rules-based quantitative models and algorithms to make investment decisions and build portfolios. We deliberately targeted a mix of investor profiles across multiple markets, with a preference for those that were larger and/or more experienced.
In 2024 we conducted interviews with 131 different pension funds, insurers, sovereign investors, asset consultants, wealth managers and private banks globally. Together these investors are responsible for managing
Institutional investors are defined as pension funds (both defined benefit and defined contribution), sovereign wealth funds, insurers, endowments and foundations.
Retail investors are defined as discretionary managers or model portfolio constructors for pools of aggregated retail investor assets, including discretionary investment teams and fund selectors at private banks and financial advice providers, as well as discretionary fund managers serving those intermediaries.
The fieldwork for this study was conducted by NMG's strategy consulting practice. Invesco is not affiliated with NMG Consulting.
1 | According to the Global Index Returns (Figure 2.1), Momentum: |
2 | e.g., large-cap equities or government bonds |
Media Contacts:
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Brianna Stokes | brianna.stokes@invesco.com | 212-323-4588
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SOURCE Invesco Ltd.
FAQ
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