Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management.

Apple Boston

2019-07-29 11:33:00 Mon ET

Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management. As Ang indicates in an interview with Ritholtz Wealth Management, fundamental factor investors seek to manage macroeconomic risk to enhance their average returns. Ang focuses on 5 primary factors: size, value, momentum, low volatility, and high quality of profit margins. In addition, Ang oversees a broad basket of assets such as stocks, bonds, currencies, and commodities.

The consistent application of both big data and technology helps scale total assets under management with lower transaction costs. At BlackRock, Ang decomposes his favorite fundamental factors across macro and style factors. The 3 major macro factors are *economic growth, inflation, and the real interest rate*, in accordance with the baseline Taylor interest rate that depicts a highly non-linear Phillips curve. Ang empirically finds that these 3 macroeconomic factors account for 85% of stock market returns. Stock portfolio analysis helps achieve higher average returns (after risk and fee adjustments) when the active fund manager focuses on size, value, momentum, low volatility, and corporate profitability. Moreover, value occasionally becomes more cost-effective relative to its own history, and key momentum returns often cluster together in specific time periods. This factor investment methodology accords with our proprietary alpha investment model that relies on 6 fundamental factors (size, value, momentum, asset growth, operating profitability, and market risk exposure).

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms.

Becky Berkman

2018-11-29 11:33:00 Thursday ET

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms.

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms. As Democrats have successfully flipped the Ho

+See More

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war.

Dan Rochefort

2019-06-13 10:26:00 Thursday ET

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war.

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war. In recent

+See More

Trump's presidential election victory caused an unpredictable *black swan* in almost every non-U.S. stock market in the world.

Fiona Sydney

2016-11-09 00:00:00 Wednesday ET

Trump's presidential election victory caused an unpredictable *black swan* in almost every non-U.S. stock market in the world.

Universally dismissed as a vanity presidential candidate when he entered a field crowded with Republican talent, the former Democrat and former Independent

+See More

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression.

Laura Hermes

2019-11-21 11:34:00 Thursday ET

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression.

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression. The current U.S. ec

+See More

Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.

Rose Prince

2018-04-07 09:36:00 Saturday ET

Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.

Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage in response to the Cambridge Analytica data debacle and use

+See More

Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Daisy Harvey

2019-09-11 09:31:00 Wednesday ET

Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Central banks in India, Thailand, and New Zealand lower their interest rates in a defensive response to the Federal Reserve recent rate cut. The central ban

+See More