20 Top Whitepapers from April 2019

Popular and Trending Papers from April 2019

Time to spring into action and take a look at Savvy Investor's selection of 20 top papers for the month of April.  We've got several high quality factor-related papers interspersed throughout the list, such as AQR's study of factor momentum and Axioma's discussion of portfolio construction choices in "What, Exactly, Is a Factor?"     

But with the diverse array of topics we've included, we're sure you'll find some other 'good eggs' in this basket as well.  Read on to explore topics like currency hedging, accounting for climate risk, investment management expenses and fees, AI, retirement adequacy, and more. 

Timberland and Farmland: Together in a Mixed Asset Portfolio (Manulife AM, 2019)

For compliance reasons, this paper is only accessible in the EMEA region

This article by Manulife Asset Management compares a farmland and timberland portfolio's risk and return profile to that of CRE and other financial assets.

Invest in the ABCs of ESG (Intech, 2019)

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

The Global Sustainable Investment Alliance reports that ESG investments now exceed $30 trillion – one quarter of professionally managed assets. Increasing popularity has increased the ESG noise. Cut through it with this straightforward, no-nonsense paper on ESG investing.

Quarterly Outlook, Q2 2019 (PGIM Fixed Income)

How will strong Q1 performance figures affect the markets going forward into 2019, and what's next for fixed income sub-asset classes? PGIM Fixed Income looks into these issues and more in their Q2 investment outlook.

EM local currency bonds: investing in frontier markets (Capital Group, Mar 2019)

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

The idiosyncrasies of frontier markets may offer unique opportunities for informed investors. The authors discuss the specific challenges that exist within frontier local currency markets.

What, Exactly, Is a Factor? (Axioma, 2019)

Axioma looks into the differences resulting from certain factor-related portfolio construction choices when putting together a long-short factor-mimicking portfolio.

Factor Momentum Everywhere (AQR Capital Management, 2019)

After studying the returns of equity factors worldwide, the authors present evidence for momentum behavior within factor returns.

Gold as a Strategic Asset in 2019 (World Gold Council, Mar 2019)

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

The authors describe in detail the four fundamental roles that gold can play in a portfolio and examine the potential risk/return benefit that would accrue to a pension fund portfolio upon increasing their gold allocation.

Is the Low Volatility Anomaly Universal? (S&P Dow Jones Indices, 2019)

The low volatility anomaly is counterintuitive, yet it has been shown to be both robust and persistent across several global markets.

Trends in the Expenses and Fees of Funds (ICI, 2018)

This paper by the Investment Company Institute details the latest trends in the expenses and fees of investment funds in 2018.

Beyond Currency Hedging (PIMCO, 2019)

More simplistic currency hedging strategies are sub-optimal. In this paper, PIMCO develops an alternative framework for hedging currency exposure within multi-asset portfolios.

Economic Modeling of Climate Risks (Amundi AM, 2019)

Economic modeling techniques can provide short and medium-term assistance to a variety of stakeholders who are actively engaged in climate change-related decision making.

European Institutions Turn to ETFs (Greenwich Associates European Study, 2019)

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

This year's Greenwich Associates ETF Study reveals rapid growth in ETF investments by institutional asset managers in Europe, as well as discretionary wealth managers and insurance companies. Investors repositioned portfolios in response to volatility in 2018 and continued to shift from active towards passive strategies.

Debunking the yield curve as a forecaster of recessions (BNP Paribas AM, 2019)

BNP Paribas AM argues against using the yield curve to forecast recessions, predominantly due to the non-recession-related information contained within the curve.

Artificial Intelligence in Investment Management (Meketa Group, 2019)

Meketa Group discusses the ways that A.I. is already influencing the investment process, its usage within hedge funds, and the selection of A.I. fund managers.

Asset Managers & Banks: Growth in Disruption (Oliver Wyman/Morgan Stanley)

Falling margins and lower fees make it tough for asset managers and wholesale banks to accelerate their growth. Both must chart a new course that takes into account the emergence of Asia, AI, and new business models.

Why Does Everyone Hate MMT? (James Montier, 2019)

James Montier, of GMO, attempts to debunk recent characterizations of Modern Monetary Theory brought forth by Ken Rogoff, Paul Krugman, Larry Summers, and several others.

How Will Retirement Saving Change by 2050? (Brookings Institution, 2019)

How adequate are retirement savings amongst both retirees and soon-to-be retirees? How do economic factors affect the savings of different generations? And how will demographic shifts alter the ability to accumulate wealth?

Liquidity, Complexity and Scale in Private Markets (PIMCO, 2019)

PIMCO investigates models of illiquidity and summarizes their salient conclusions. Illiquid and complex private investments are of the most benefit for patient investors with scale to spare for the necessary research costs.

U.S. DC Plan Design Distribution Options (DCIIA, 2018)

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

This paper highlights ways that pension plan design can impact participant distribution choices. It recommends that plan sponsors look into retirement adequacy goals for retirees and near retirees and that they include more flexible options for participants than are presently available.

Long-Term Return Expectations - H1 2019 (Baillie Gifford)

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

Baillie Gifford's Multi Asset Team sets out their viewpoints on which asset classes will likely deliver over a timeframe of 10 years and beyond.