Equity Factor Insights Q4 2025 Report

This document is a quarterly report detailing the performance of equity factors during Q4 2025. It outlines how the Value factor continued to outperform benchmarks, particularly in the US and Emerging markets, where it had previously lagged. The report highlights that Quality also led equity indices in various regions, while (Small) Size lagged behind. The performance of Momentum and Low Vol was mixed. The report discusses the impact of a moderating tech rally on factor returns and notes that easing short rates supported Financials industry returns. It describes investor preferences for larger, value-oriented, and quality equities, indicating a defensive stance during this quarter. Valuation changes are noted as mixed, with absolute 12M factor forward P/Es expanding overall, though some exceptions were observed in specific markets. The report includes regional performance highlights and contributions to total benchmark returns, providing a comprehensive view of equity factor dynamics.