Factor Investing

Global equity indices retreated in May, dragged lower by European and Asian shares. In the US, better-than-expected earnings from technology companies overshadowed concerns about a government default and ongoing interest rate hikes.

Stocks rose in April following better-than-expected economic and earnings reports, and amid signs that inflation in key regions continues to cool.

Stocks rose in March, rebounding from losses in the month’s first half, as investors raised expectations the Federal Reserve may soon pause its interest rate hikes following the collapse of three lenders in the US.

US and Asian stocks fell in February, as better-than-expected economic reports in the US signaled the Federal Reserve has room to continue raising interest rates. European shares climbed when measured in euros.

Four new indices have been added to the STOXX Equity Factor suite, which offers diversified multifactor exposure to five equity style risk premia sources. Powered by STOXX’s indexing capabilities and Axioma’s risk models and portfolio optimizer, the indices deliver balanced and well-researched factor exposures, seeking long-term outperformance.

Stocks jumped in January as expectations built up that inflation worldwide may have peaked and that any recession in key developed economies may be mild.

Stocks declined in December, wrapping the STOXX® Global 1800 index’s worst year since 2008, as investor concerns lingered about the impact of inflation and higher interest rates on economic and earnings growth.

The STOXX® Global 1800 index rose for a second straight month in November as investors raised expectations that higher interest rates are helping temper inflation.

We look into the economic risks of employing factor-style strategies such as those in the STOXX Factor Indices, by screening them through Axioma’s Macroeconomic Projection model. The findings show that some styles have more economic exposure than others, and that macro variables can be correlated with industry, country and style factors, to different degrees.

The customized index is an optimized solution that balances multiple investment objectives and uses various inputs, including LGIM’s proprietary ESG data.

The STOXX® Global 1800 index rebounded from a two-year low last month on investors’ expectations that the Federal Reserve may soon slow down the pace of interest-rate hikes.