Abstract
This report examines whether institutional investors remain underexposed to productivity as a structural investment theme in an environment characterized by persistent inflation, slower trend growth, de-globalization, and trade-related uncertainty. Drawing on three Averdas research studies, it evaluates four productivity factors—Asset, Process, Resource, and Resilience—individually — and in combination through the Averdas Multi-Factor approach.
The analysis covers approximately sixteen years of U.S. market data from July 2009 to April 2025 and assesses factor behavior across four macroeconomic regimes, the COVID-19 crisis, and the 2025 trade-war and tariff environment. The report finds that the multi-factor approach and each individual factor outperformed the relevant benchmark across the tested regimes, including periods of falling growth. It also examines risk-adjusted returns and corporate examples that illustrate how productivity advantages can arise through more efficient use of assets, operational processes, resources, and organizational resilience.
The findings suggest that productivity exposure may serve as a structural complement to existing style, macroeconomic, and innovation allocations. The results include model-based, simulated, and back-tested data and do not guarantee future performance. The report is intended for professional and institutional investors only and is not investment advice.
