The Four Dimensions of Productivity
The four Averdas factors examine different dimensions of corporate productivity. Together, they form an integrated analytical and investment framework.
Resource Factor
Make the Business
For sustainable business enabled by efficient use of resources.
How resource factor works?
Resource-efficient stocks tend to outperform resource-inefficient stocks over the long term. This is known as the resource-efficiency-score.
Why they outperform resource-ineffective stocks?
Organizations with a focus on reducing the consumption of resources have better stakeholder scores (i.e., ESG) and higher shareholder values, leading to higher returns.
Make the Business
Resource Factor
Resilience Factor
Stabilize Business
For stable business enabled by the ability to adapt quickly on a strategic and operational level.
How resilience factor works?
Resilient organizations better cope with disruptive events , “bounce back” faster to a pre disruption state, and “bounce forward” toward unprecedented futures.
Why they outperform resource-ineffective stocks?
Organizations having high resiliency anticipate, adapt and recover better from disruptive events on the systematic, strategic and operational level leading to higher stable returns.
Stabilize the Business
Resilience Factor
Process Factor
Run the Business
For profitability enabled by efficient use of operational capabilities.
How process factor works?
Process-efficient stocks tend to outperform process-inefficient stocks over the long run. This is known as the operating frontier.
Why they outperform process-ineffective stocks?
Organizations with better dynamic organizational capabilities are more efficient and aligned to the VUCA environment, leading to higher returns.
Run the Business
Process Factor
Asset Factor
Build the business
Long term growth enabled by effective use of assets like labor, capital and technologies.
How asset factor works?
Asset-effective stocks tend to outperform asset-ineffective stocks over the long term. This is known as the organizational production possibility frontier.
Why they outperform asset-ineffective stocks?
Organizations that fully utilize their assets will produce a higher quantity of goods more efficiently, leading to higher revenues.
Build the Business
Asset Factor
Multi Factor
After calculating each score, a multi-step procedure is applied to identify and select the best performing companies in terms of innovation-productivity, process-productivity, and resiliency. Step 2 builds on Step 1 by selecting the TOP 50 process-efficient companies from the TOP 100 innovation-efficient companies. In step 3 the TOP 20 performing resilient companies are matched with the TOP 50 of the identified companies after step 2. The remaining “spaces” are filled with the TOP 50 companies after step 2. This procedure ensures that the final selection embodies the best performing firms. This approach prevents over-reliance on any single factor while combining the benefits of growth, profitability, and stability.
Multi Factor
Productivity Factors in the Investment Process
Averdas analyzes productivity as a structural characteristic of companies. Our framework examines how efficiently companies use capital, technology, processes, and resources and how they maintain operating performance under changing conditions.
The four productivity dimensions support a structured and quantitative analysis of companies across defined investment universes.
Data-driven company analysis
Averdas uses defined data sources to analyze company characteristics.
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Four dimensions of productivity
The Averdas framework considers four related dimensions: asset,process, resource, and resilience productivity.
Quantitative methodology
Quantitative models support the analysis of inputs, outputs, and relative productivity within a defined peer group.
Identifying relative productivity differences
The framework is designed to identify differences in how companies convert defined inputs into economic outputs.
Analysis across changing market environments
Companies may respond differently to changes in economic, technological, and operational conditions.
Defined investment universe
The productivity framework depends on the relevant investment universe, index rules, and product methodology.
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Size
Smaller, high-growth companies
Quality
Financially healthy companies
Momentum
Stocks with upward pricetrends
Carry
Income incentive to hold
riskier securities
Value
Stocks discounted relative
to their fundamentals
Minimum volatility
Stable, lower-risk
stocks
Quality
Financially healthy companies
Momentum
Stocks with upward pricetrends
Size
Smaller, high-growth companies
Productivity Complements Traditional Factor Perspectives.
Traditional style factors address different questions from productivity factors. While Value, Momentum or Quality describe specific characteristics of companies or securities, Averdas examines how effectively companies convert capital, processes and resources into economic outputs.
Solactive Averdas Productivity Indices
Explore rules-based indices based on the Averdas productivity framework.
Multi-Factor Indices: Combining Factors
Factors can be used individually or in combination to reflect different investment objectives and market perspectives.
The available combinations and their weighting depend on the applicable approved index or product methodology:
Asset + Process
Asset + Resource
Asset + Resilience
Resource + Resilience
Process + Resource
Process + Resilience
The Averdas Factor Framework by Investment Universe
The Averdas Factor Framework by Investment Universe
Market Commentary on the Averdas Productivity Indices
US The market pulled back due to higher bond yields and narrower leadership. AI technology stocks performed well, but many other sectors and smaller companies were pressured. The Fed raised rates by 25 bps to 3.75%-4.00%, its first increase since 2023, due to high inflation and rising energy costs. This raises concerns that rates will remain high. However, strong activity and continued AI spending support select companies.
European stocks were affected by higher energy prices, rising government bond yields, and political uncertainty. Economic data remained resilient. Meanwhile, the ECB raised its policy rates by 25 basis points as inflation risks increased. Energy and technology stocks provided support, and the region's diversified sector structure balanced the concentrated exposure to US and Asian technology stocks.
Asia benefited from strong demand for semiconductors, AI infrastructure, and technology exports. Taiwan and South Korea were more resilient than other markets, while China and Australia were weaker. Higher oil prices, a stronger US dollar, and rising global yields created pressure, particularly for energy-importing economies. Asia's long-term growth and technology exposure are attractive, but the region can be volatile when investors reassess AI valuations or global financing conditions.
Emerging markets ex-Asia: The region fared better than the US and Asia this month. Commodity exposure and attractive valuations provided support, but the stronger dollar, higher rates, and oil prices created challenges. Emerging markets were varied; some markets performed well while others faced pressure. Continued diversification is important.
Overall: The main market drivers were higher energy prices, rising bond yields, a stronger dollar, and more restrictive central bank policy. Oil prices rose and bonds also rose. Economic activity was strong. September was a slow period, but the long-term outlook remains strong. Selectivity and diversification are key. AI technology is one of the strongest areas, but market sectors lagged. Asia continues to provide the strongest structural growth exposure. Europe and EM ex-Asia also provide exposure. Interest rates may remain high due to energy prices and fiscal pressures.
Source: Averdas Ag. Data as of 30. September 2026. Calculation: Total return.
Currency: (EUR/(USD)
Understanding the Full Scope of Productivity Factors
Asset Factor
Process Factor
Resilience Factor
Resource Factor
Multi-Factor
US
Asset Factor
US
Process Factor US
Resilience Factor US
Resource Factor US
Multi-Factor
US
Europe
Asset Factor Europe
Process Factor Europe
Resilience Factor Europe
Resource Factor Europe
Multi-Factor Europe
Global
Asset Factor Global
Process Factor Global
Resilience Factor Global
Resource Factor Global
Multi-Factor Global
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