Smart Beta and Factor Investing Training Course

Introduction

Smart Beta and factor investing strategies have transformed the landscape of portfolio management by blending the efficiency of passive investing with the precision of active strategies. This training course provides a deep dive into the principles, design, and implementation of Smart Beta and factor-based portfolios. Participants will gain a comprehensive understanding of how to identify, evaluate, and apply key investment factors such as value, momentum, quality, low volatility, and size, enabling them to construct more efficient, risk-aware portfolios.

Designed for investment professionals navigating an increasingly data-driven market environment, this five-day course delivers practical insights and analytical tools for factor exposure management, portfolio construction, and risk attribution. Participants will explore the academic foundations of factor investing, backtesting methodologies, and the use of Smart Beta ETFs, while addressing the challenges of factor timing, cyclicality, and investor behavior in the real world.

Duration: 5 days

Target Audience:

  • Portfolio managers and investment analysts
  • ETF strategists and product developers
  • Wealth and asset management professionals
  • Quantitative analysts and risk managers
  • Pension fund and institutional investment officers

Course Objectives:

  • Understand the theoretical foundations of Smart Beta and factor investing
  • Identify and apply common investment factors in portfolio construction
  • Evaluate Smart Beta strategies across different market cycles
  • Manage risk and enhance diversification using factor exposures
  • Integrate Smart Beta tools into strategic and tactical asset allocation

Course Modules

Module 1: Introduction to Smart Beta and Factor Investing

  • Evolution of Smart Beta strategies
  • Difference between traditional indexing and Smart Beta
  • Overview of systematic vs. discretionary investing
  • Core investment factors and their significance
  • Benefits and criticisms of Smart Beta

Module 2: Understanding Investment Factors

  • Key factors: value, momentum, size, quality, low volatility
  • Academic evidence supporting factor premiums
  • Factor persistence and cyclicality
  • Relationship between factors and market anomalies
  • Risks of factor crowding and overexposure

Module 3: Smart Beta Portfolio Construction

  • Rules-based indexing approaches
  • Weighting methodologies (equal weight, fundamental, risk parity)
  • Blending factors into multi-factor portfolios
  • Managing turnover and rebalancing frequency
  • Case studies of Smart Beta ETF strategies

Module 4: Factor-Based Risk Management

  • Factor-based performance attribution
  • Diversification benefits from uncorrelated factors
  • Tracking error and factor sensitivity analysis
  • Scenario testing and risk decomposition
  • Volatility targeting using factor exposures

Module 5: Factor Timing and Strategic Allocation

  • Cyclical behavior of factors across market regimes
  • Signals and indicators for factor timing
  • Dynamic factor rotation strategies
  • Role of macroeconomic data in allocation shifts
  • Integrating factors into tactical asset allocation

Module 6: Backtesting and Evaluation of Factor Strategies

  • Principles of robust backtesting
  • Avoiding data mining and look-ahead bias
  • Interpreting backtest results with caution
  • Using historical simulations and forward-looking metrics
  • Building custom factor models

Module 7: Smart Beta in Practice: Products and Platforms

  • Smart Beta ETFs and mutual funds overview
  • Product selection and due diligence
  • Institutional vs. retail adoption trends
  • Costs, liquidity, and implementation challenges
  • Regulatory considerations and disclosures

Module 8: Communication and Integration with Clients

  • Explaining Smart Beta and factors to stakeholders
  • Aligning factor strategies with investment objectives
  • Addressing performance expectations and misconceptions
  • Reporting and transparency best practices
  • Integrating Smart Beta into IPS and investment governance

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

Smart Beta And Factor Investing Training Course in Brunei Darussalam
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