Most popular and trending papers from Feb 2017
February's top papers on Savvy Investor cover a wide array of topics, including asset allocation, factor investing, alternative assets, DC pensions, stock selection, ESG, ETFs and real assets.
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Financial Market History: Reflections on the Past for Investors Today (CFA)
This 279-page book, published by CFA Institute Research Foundation, provides a detailed, varied and fascinating look at the history of financial markets.
The Case for Multi-Beta Multi-Strategy High Factor Exposure Indices (EDHEC)
This paper introduces Scientific Beta's well-diversified "top-down" multi factor approaches and compares them with "bottom-up" score-weighting approaches that target high factor intensity.
Global Infrastructure: The Listed Alternative (Cohen & Steers)
With more institutions allocating to infrastructure, this paper argues that the listed market offers a compelling solution to the rising build-up of capital in the private market, helping investors achieve their investment goals.
Betting Against Correlation (Cliff Asness, Feb 2017)
This paper by Cliff Asness takes a deep look into what drives the low-risk effect. In it, he creates a new priced factor that helps distinguish between competing, and confounding, stories explaining the efficacy of low-risk investing.
Inefficiencies in the Pricing of ETFs (Financial Analysts Journal, 2017)
This paper examines the topic of ETF pricing inefficiencies. In it, Dr Antti Petajisto, introduces a novel approach that uses the cross section of prices on a group of similar ETFs to control for stale pricing of the underlying assets.
Credit Suisse Global Investment Returns Yearbook 2017
This excellent 59-page document from Credit Suisse considers topical themes (particularly recent monetary policy) within the context of long-run global asset returns. The document contains data for several countries going back to 1900.
Outlook for 2017 (Pantheon)
This paper by Chris Mead, Head of Investment at Pantheon, explores the investment and economic outlook for 2017 by focusing on four key topic areas.
Lessons From 2004: Don’t Shy Away From Fixed Income (PineBridge, 2017)
The Federal Reserve’s rate forecast for 2017 may come to resemble that of 2004, which may be good news for investors in U.S. dollar credit.
The Benefits of Real Assets Diversification in DC Plans (Cohen & Steers, 2017)
With stocks and bonds facing the prospect of subdued returns, many fiduciaries of DC plans are considering diversification options for their investment menu. This paper makes the case for liquid real assets.
China through the mosaic of its share classes (FTSE Russell)
China’s share classes represent the arc of the country’s transformation from a dormant agrarian society to bustling centre of global commerce. This FTSE Russell paper paints a picture of that change.
Factor Investing and Asset Allocation (CFA Institute Research Foundation)
Factor investing is as old as the hills yet it has only recently become a widespread practice. What is behind this sudden change in the fund management industry?
2017 Global Private Equity Survey (EY)
This 51-page paper by EY explores how the global private equity industry can further shape its future operations. This survey provides insights from 103 private equity CFOs.
2017 Long-Term Capital Market Assumptions (Voya Investments)
This 21-page paper by Voya Investment Management provides an overview of the firm's long-term capital markets forecast (including methodology) of asset class returns over the 2017-2026 horizon.
ESG Risk in Default Funds: The UK's DC Pension Market (PLSA/Sustainalytics)
This paper (a collaborative effort between the PLSA and Sustainalytics) examines the different ESG risks facing default funds. It identifies passive investment strategies incorporating ESG as potential ways of mitigating this risk.
2017 Global Market Outlook (T. Rowe Price)
Modest global growth and uncertainty about the pace of rising interest rates require a selective eye when it comes to making investment decisions. This outlook paper discusses how to navigate this new landscape.
U.S. Small Cap Perspectives: The “Trump Bump?” (FTSE Russell, Feb 2017)
FTSE Russell’s latest market report on the U.S. small cap as measured by the Russell 2000 Index – an index that has historically served as a uniquely sensitive gauge of the U.S. economy’s health.
Do you know where your equity revenues come from? (Wellington Management, 2017)
This paper by Wellington Management delves into sources of revenues for U.S., European, Japanese, and EM equity markets, and explores how their relative exposures shape investor views.