BNP AM

The sustainable investor for a changing world

Multi-factor equity strategy

Key features

A global portfolio of inexpensive, high-quality, low-risk and trending stocks

A systematic, multi-factor investment approach that integrates ESG considerations

A team of 40 plus quantitative investment professionals

Investment philosophy 

We believe that investors’ behavioural biases are the main sources of persistent alpha in equity markets. For this reason, we use a research-driven, systematic approach.

Our proprietary research shows that this alpha can be captured through systematic factor exposure.

We avoid factor timing strategies for which the level of statistical significance tends to be low.

Investment process

Our Multi-factor Equity strategy follows a systematic process that relies on proprietary research.

  • Factor calculation: scoring of the investment universe using four independent factors – value, momentum, quality and low volatility
  • Multi-factor scoring: combination of individual factor scores to create a global score; each factor weight contributes to 25% of the target tracking error level
  • Portfolio construction: a long-only portfolio with integration of investment constraints and ESG objectives

Team and resources

BNP Paribas Asset Management is long-standing player in the quantitative investing space, having launched our first factor-based equity and fixed income strategies in 2008 and 2009 respectively.

Our quantitative teams consist of over 40 experts including portfolio managers, quantitative analysts and researchers, and investment specialists. They are supported by our Sustainability Centre and benefit from access to our global investment platform.

Our Quantitative Equity team is based in Paris. Laurent Lagarde, who has more than 14 years of industry experience, leads the team.

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved.