Institutional investors are limiting portfolio diversification through overexposure to a selected group of U.S. technology stocks, says Alec Murray, senior vice-president and head of equity client portfolio managers at Amundi Asset Management. Since the beginning of 2023, he says, public equities have offered strong returns largely due to the performance of a concentrated group of technology […]
While factor behaviour tends to be consistent in market crashes and corrections, individual factor performance varies over the medium term. As such, institutional investors should maintain diversified exposure across key equity factors including value, quality, momentum, size and low volatility, according to a new paper by Mercer. The paper explored the past three financial crises: […]