Key Takeaways
- • Jason Hsu (adviser to Premia Partners, founder and CIO of Rayliant Global Advisors) and David Lai (partner and co-CIO at Premia Partners) presented factor-based investing strategies at Asia Risk Congress 2017, addressing institutional investor applications in emerging markets.
- • Factor-based investing represents a systematic approach to portfolio construction that emphasizes exposure to specific return drivers rather than traditional cap-weighted benchmarking, with particular relevance for emerging market allocations.
- • The discussion centered on emerging markets as a key geography for factor implementation, suggesting institutional investors are actively evaluating factor-based methodologies for non-developed market exposure.
Summary
At the 2017 Asia Risk Congress, two prominent investment professionals addressed the growing institutional interest in factor-based investing strategies within emerging markets. Jason Hsu, who serves as adviser to Premia Partners and leads Rayliant Global Advisors as founder, chairman, and chief investment officer, joined David Lai, a partner and co-chief investment officer at Premia Partners, to examine how factor-based approaches can be deployed in emerging market portfolios.
Factor-based investing has emerged as a significant methodology for institutional managers seeking to move beyond traditional market-cap weighting toward more systematic exposure to specific return drivers such as value, momentum, quality, and low volatility. The presentation at Asia Risk Congress reflected growing institutional recognition that emerging markets present both distinct opportunities and challenges for factor implementation, requiring specialized expertise in market structure, liquidity dynamics, and regional variations in factor premiums.
The participation of both Rayliant Global Advisors and Premia Partners—firms with significant emerging market expertise—underscores the institutional asset management community's focus on optimizing emerging market exposure through factor-based frameworks. This discussion likely addressed practical implementation considerations including factor selection, weighting methodologies, regional diversification, and risk management approaches specific to emerging market conditions, where factor behaviors may diverge from developed market patterns.
Factor-based investing has emerged as a significant methodology for institutional managers seeking to move beyond traditional market-cap weighting toward more systematic exposure to specific return drivers such as value, momentum, quality, and low volatility. The presentation at Asia Risk Congress reflected growing institutional recognition that emerging markets present both distinct opportunities and challenges for factor implementation, requiring specialized expertise in market structure, liquidity dynamics, and regional variations in factor premiums.
The participation of both Rayliant Global Advisors and Premia Partners—firms with significant emerging market expertise—underscores the institutional asset management community's focus on optimizing emerging market exposure through factor-based frameworks. This discussion likely addressed practical implementation considerations including factor selection, weighting methodologies, regional diversification, and risk management approaches specific to emerging market conditions, where factor behaviors may diverge from developed market patterns.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.