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Top 20 Whitepapers of February 2018

The Most Popular and Trending Papers from February 2018

Although a short month, February packed quite a punch this year. Take a peek at the most impactful papers of the past several weeks, including topics such as: VIX interpretation, pensions studies, risk analysis, factor investing, ESG issues, and EM debt. 

Savvy Investor
Invesco Global Fixed Income Study 2018
Invesco's Global Fixed Income Study provides a thought-provoking examination of six themes, including: new normalisation, low yields and other challenges for investors, ESG, alternative credit, and internal vs external asset management.

A Practitioner’s Guide to Reading VIX® (S&P Dow Jones Indices)
If nothing else, the events of February 2018 have shown that the understanding and interpretation of VIX levels are vital components of an institutional investor's tool kit. S&P Dow Jones Indices explains further in this helpful guide.

Global Cash Outlook 2018: Cash in a Shifting Rate Environment (SSGA)
Although various central banks around the world may be at different points within the interest rate cycle, with the global economy growing faster in 2018, cash investors should be wary of ripples caused by tighter monetary policy.

Global Pension Asset Study (Willis Towers Watson, 2018)
This annual pensions study from Willis Towers Watson examines the largest 7 pensions markets, which make up over 90% of global pensions assets.

A New Dawn for Emerging Markets Equities (Barings, Feb 2018)
Portfolio managers from Barings explain why they believe that the outlook for emerging market equities is still positive.

Measuring Physical Climate Risk in Equity Portfolios (Deutsche AM)
Deutsche AM explains how investors can monitor and proactively address the ways that climate change can affect investment portfolios.

Capital Market Assumptions: 10 Consultant Outlooks (eVestment, Feb 2018)
In this eVestment paper, the authors review capital market assumptions from 10 different consultants and take a deeper dive into the consultants’ outlook across various asset classes.

Cashflow Awareness: Transfers out (LGIM, 2018)
(For compliance reasons, this paper is not accessible in the USA or Canada)
LGIM examines the ways that pension schemes can effectively manage (on a short and long-term basis) the effect of transfers out.

Casting the widest net in emerging-markets debt (Eaton Vance)
(For compliance reasons, this paper is not accessible in the USA or Canada)
Out of the predominant global fixed income sectors, emerging markets debt denominated in local currencies has been the highest yielding. Eaton Vance delves into this fixed income asset class.

For Style Factors, One Size Does Not Fit All (Axioma)
Axioma discusses the usage of factors for alpha generation, and recommends that investors utilise both local and regional models, exercise patience, and ensure that they examine pure risk factors.

I can't avoid risk. How do I take it wisely? (Fidelity International, Feb 2018)
(For compliance reasons, this paper is only accessible in the UK and Europe)
Fidelity takes a look at risks and investor comfort levels, as well as certain tools that can assist in mitigating risks.

Incorporating diversity into passive investments (FTSE Russell, 2018)
The FTSE Women on Boards Leadership Index Series was designed to help investors manage gender diversity issues within benchmarks, and recommends a tilt towards gender diverse organisations.

Strong hands needed to unlock the potential of factor investing (Robeco)
Robeco states that long term investors that are patient and have persistent style exposures are more likely to maximise factor specific alpha than those that attempt factor timing.

EM Local Debt: Focused on Fundamentals (Barings, Feb 2018)
In their Viewpoint document, Barings gives readers an inside peek at their internal investment process for using qualitative and quantitative analysis to examine emerging market debt.

What Does Population Aging Mean for Growth and Investments? (KKR, Feb 2018)
Herein, KKR explores demographic changes, specifically population aging, its economic implications, and investment opportunities that may arise as a result of these altered demographics.

Investment stewardship for positive societal impact (Eaton Vance, Jan 2018)
(For compliance reasons, this paper is only accessible in the USA and Canada)
Given the increased institutional focus on ESG, this paper encourages large investors such as active managers and pension funds to steward industry and systems-level use cases for merging ESG issues into investment processes.

Equity Valuation: Science, Art, or Craft? (CFA Institute Research Foundation)
The CFA Institute Research Foundation interviews portfolio managers, CIOs, and research directors in order to examine the origin of nonconsensus beliefs and their resulting buy/sell recommendations.

How to Harness Volatility to Unlock Alpha (Intech Investments)
(For compliance reasons, this paper is only accessible in the selected geographies)
Volatility is not only a source of risk, but can also be a source of alpha. Portfolios can be constructed with the excess growth rate in mind, so that systematic rebalancing both captures volatility and replenishes diversification.

Modern Slavery: The True Cost of Cobalt Mining (Hermes IM)
(For compliance reasons, this paper is not accessible in the USA)
Hermes discusses the supply chain for cobalt, the impact that cobalt mining can have on indigenous populations, and the increased demand for cobalt in lithium-ion batteries.

Video: ESG - four underappreciated risks (Fidelity International, Feb 2018)
From data breaches at a telecoms company to the ramifications of economic populism, analysts from Fidelity relate their own impressions of ESG risks that may be underappreciated.

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