Avoiding the Traps of Simplicity: How Systematic Strategies Counter Investor Biases

This Allianz Global Investors report examines how behavioural biases like home bias and anchoring can distort investment decisions and limit diversification. It highlights how the Best Styles systematic equity strategy mitigates these risks.

• Home bias and framing can lead investors to overweight familiar markets, reducing opportunity sets and long-term diversification potential.

• Anchoring on arbitrary numbers (e.g., market milestones) can skew perceptions and prompt suboptimal decisions.

• Best Styles’ broad investment universe, benchmark-relative sector/region alignment, and multi-style evaluation help neutralise biases while maintaining diversification.

Explore the full report for an in-depth look at how systematic approaches enhance rational, bias-resistant investing.