BBVA Looks to Increase Systematic Long Only Factors in Equities

Officials at EUR110 billion BBVA Asset Management are exploring the possibility of replacing part of the risk assigned to equities in the firm’s asset allocation portfolios with exposure to systematic long-only factors in equities. Laura de Frutos, head of alternative risk premia at BBVA AM in Madrid, said this is because systematic factor investing can add value. “It has been academically and empirically proven that factors extract market betas in an efficient way,” she said.