Could more complex strategies encourage short-termism?

katrina Baugh
clock • 2 min read

One of the big trends in the funds industry over the past few years has been the proliferation of alternative UCITS vehicles, with the industry reporting annual growth rates of over 30%.

However, a recent article by US-based asset allocation specialist Research Affiliates sounds a warning about the overlooked impact of more complex investment strategies on the psyche of investors, and contains lessons which can be carried across to these popular products. In particular, the article raises concerns that in certain cases, overly complicated strategies may be contributing to the scourge of the investment world in recent years - the rise of short-termist thinking and performance chasing. Three steps to identifying investment factor 'robustness' The article's authors arg...

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