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Trick or Treat? Top & Trending Papers – Oct 2020

20 Top Whitepapers from October 2020

In recent days, markets have refocused on the economic risk posed by the first COVID-winter in the Northern Hemisphere. However, with one or two exceptions, the papers selected for our 20 Top Papers focus on evergreen topics, aside from viral concerns and the upcoming US election, which we covered recently. 

October's list of 20 Top Papers includes another Savvy Investor Special Report – Investing in Asia: A tipping point. A myriad of issues relevant to Asian markets are explored within, including demographic concerns, trade policies, and the impact of foreign exchange. Other papers explore topics such as factor investing, the manager selection process within defined benefit pension plans, an update on the outlook for global real estate markets, and the potential impact of a Trump re-election upon the U.S. health care industry.  

October pumpkin

Global Factor Investing Study (Invesco, 2020)

For compliance reasons, this paper is only accessible in certain geographies

238 factor investors were interviewed as a part of Invesco's Global Factor Investing Study, comprising over US$25 trillion in assets under management. The report is split into five thematic sections, covering topics such as factor resiliency, fixed income factors, and the intersection of ESG and factor investing.

Economic Recovery Waiting for More Visibility (Candriam, Oct 2020)

For compliance reasons, this paper is only accessible in certain geographies

Candriam's monthly strategic update for global equity markets examines the underlying reasons why global markets declined in September and includes sector-specific commentary.

How Governance Factors May Impact Financial Performance (Calvert, 2020)

Calvert research conducted on governance factors looks at how they can materially affect financial performance. The research covers over 8500 corporations within 72 countries. Interestingly, their materiality is partly dependent upon governance rules and regulations in that country.

Passive Investing in ESG — The Myths Debunked (iShares, 2020)

For compliance reasons, this paper is only accessible in the United States

In this paper, iShares attempts to debunk some of the myths surrounding sustainable index investing, clarifying some of the types of tools that are available for investors seeking to construct sustainable allocations.

China: Should it be its own asset class? (Informa, Oct 2020)

For compliance reasons, this paper is only accessible in certain geographies

Informa's Steven Shen looks at why China should be considered to be its own asset class, basing some of his conclusions on China Flows and Positioning datasets from EPFR.

Trends Investing: Finding the winners among skewed equity returns (Robeco, 2020)

One of the motivations to embrace trend investing is the realization that only a handful of stocks generate the vast majority of the stock market's returns over time.

Shifting Dynamics in EM Local Currency Investing (PGIM Fixed Income, Oct 2020)

Three CFA charterholders from PGIM Fixed Income provide their perspectives on the ways in which foreign exchange has impacted returns for emerging market local currency debt, including a discussion of the historical correlation between EMFX and rates.

Time to Reconsider US Growth and Value? (Amundi, Oct 2020)

If the global recovery continues to build steam and inflation starts to rise, Amundi analysts believe that value could significantly outperform growth.

US Election Stress Test Part III: The impact of a Trump win (Qontigo, Oct 2020)

For compliance reasons, this paper is NOT accessible in the United States

Qontigo continues their stress test analysis of the U.S. Presidential election, focusing upon the implications for the health care sector and corporate earnings for health care companies.

Looking Back at Equity Factors in Q3 (WisdomTree, Oct 2020)

This is the third edition of WisdomTree's Equity Factor Review. The authors provide data on equity factor returns over the course of Q3, detailing Momentum and Quality's positive performance.

Perspectives in Today’s Real Estate Market: October update (Nuveen, 2020)

For compliance reasons, this paper is only accessible in the UK & Europe

Nuveen's 24-page global real estate outlook explains that the present pandemic has merely accelerated trends that were already underway within the real estate assest class. Prospects for the industrial/logistics sector look positive across the globe.

Choosing Investment Managers (2020)

Historically, plan sponsors have chosen investment managers based largely upon two factors – their returns prior to the hiring decision, and whether or not a personal relationship exists between the plan (or consultant) and the investment firm. New evidence shows these criteria may not be adequate.

Bonds Have Style: A new model for capturing bond risk premia (Qontigo, 2020)

Qontigo uses an Axioma model to demonstrate that not only do style-factors exist within credit markets, but these premia can also be captured in a systematic fashion.

Home and Leisure Sectors in a Pandemic (Aviva Investors, Oct 2020)

How has the leisure sector managed to survive both the pandemic and the lockdown? Aviva looks at the ramifications for home and leisure-oriented companies, as well as the ways in which they have adapted.

Equity Market Stress Monitor: 4Q 2020 (Intech)

For compliance reasons, this paper is only accessible in certain geographies

Intech provides updates on five different equity market metrics that gauge stress levels. High amounts of capital concentration in US markets and high correlations in both developed and emerging markets (for example) are both signs of increased systemic risk.

Capital Market Line: How do you spell relief? (PineBridge Investments, Oct 2020)

PineBridge's latest Capital Market Line update favours aligning portfolios towards return-seeking objectives. The trajectory of the current economic recovery will likely last several years and should also create a tailwind for growing corporate cash flows.

Investing in Asia: A tipping point (Special Report, 2020)

Our latest Savvy Investor Special Report covers the topic of investing in Asia. It discusses country-specific dynamics, trade issues, demographic concerns, and other tipping points that are highly relevant for these markets.

Outsourcing: Separating fact from fiction (State Street, 2020)

State Street presents their views on a variety of next-gen operating models for investment companies, complete with several case studies.

Life Insurance Industry: The decade ahead (McKinsey & Company, 2020)

McKinsey & Company describes the significant changes underway within the global life insurance industry. The insurance market within developing countries has grown to represent a large portion of the overall market for global premiums and also for annuities.

Guide to Responsible Investment in Private Equity for LPs (PRI, 2020)

This PRI guide provides information for limited partners who are developing their policies for responsible investment activities within private equity (and other closed-end funds) allocations.