Pension plans ramping up factor-based investing

Pension funds in Asia, like their peers globally, are increasingly identifying factors such as low volatility, momentum and quality as key to achieving better risk-adjusted returns. Priscilla Luk, senior director of global research in Hong Kong at S&P Dow Jones Indices, says Asian institutions that have made allocations to so-called ‘smart beta’ are now diversifying their approach in this area. For example, Japan’s $1.2 trillion Government Pension Investment Fund is employin…