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20 Top Whitepapers from May 2019

Popular and Trending Papers from May 2019

Our selection of 20 top papers for the month of May is a bit eclectic, which speaks to the diversity of interests held by members of Savvy Investor.  There are several papers on the investment industry itself, including CFA Institute's "Investment Professional of the Future" and "Investment Governance for Fiduciaries," as well as BCG's take on how asset managers can respond to the various pressures they are facing.     

We've also included market-related papers on topics like the demand for oil over the next several decades, the changing correlation between stocks and bonds, determining the proper amount of leverage within LDI portfolios, and strategic allocations to specific asset classes. 

top May papers


ETFs: A Primary Means of Obtaining Fixed Income Exposure (BlackRock, 2019)

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

As a part of its 9th annual US ETF Study, Greenwich Associates interviewed 181 institutional investors on the utility of ETFs for portfolio construction purposes, finding that ETFs are now considered as a primary means of obtaining fixed income exposures within institutional portfolios. Liquidity, ease of use, speed of access, and low management fees are some of the top reasons for using bond ETFs.

China's Debt Problem (Matthews Asia, 2019)

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

Cleaning up China’s debt problem will be expensive, but is unlikely to result in a hard landing or banking crisis.

The Stock-Bond Correlation: Where to from here? (Axioma, May 2019)

Axioma focuses in on the correlation between equities and bond yields, reviewing their historical relationship and discussing their more recent convergence.

Guide to Recessions: What to look out for and how to prepare (Capital Group)

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

Recessions can be difficult to predict. This Capital Group e-brochure discusses five of the top economic indicators for gauging recession risk, as well as asset allocation recommendations for recessionary periods.

Capital Market Assumptions Q2 2019 - (Invesco)

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

Invesco provides four distinct papers covering their quarterly update on long-term estimates for global asset classes. These are based on a 10-year time horizon and currency adjustments have been made (through interest rate parity calculations) for USD, EUR, GBP, and CHF based investors.

Smart Beta Strategies: A Main Driver of ETF Demand (BlackRock, 2019)

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

As a part of its 9th annual US ETF Study, Greenwich Associates interviewed 181 institutional investors on the linkage between the utilisation of smart beta strategies and the demand for ETFs. Around one-third of investors surveyed plan on increasing allocations to factor-based or smart beta ETFs over the next year.

Oil in 3D: The Demand Outlook to 2050 (Barclays, 2019)

Barclays looks into the global reliance on oil reserves over the next several decades, considering three possible oil consumption scenarios and their resulting implications.

China: A spotlight on standalone allocation (UBS AM, 2019)

UBS Asset Management discusses the merits of a standalone allocation to Chinese assets.

Q2 2019 Bond Compass (SPDR)

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

This quarter’s issue of Bond Compass contains data on bond flows from Q1 2019, updates on global inflation levels from a proprietary inflation gauge, three potential investment themes for Q2, and several other insights.

Monthly Market Monitor (Eaton Vance, May 2019)

Eaton Vance's Monthly Market Monitor is a 44-page chartbook reviewing economic and asset class data in a clear and impactful fashion.

Late-Cycle Investing: Survive and Thrive (Neuberger Berman, 2019)

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

This Neuberger Berman paper takes a long-term perspective, examining the prospects for the present-day late-stage business cycle, as well as the landscape for markets over the coming years and four principles that investors may find helpful going forward.

Leverage in LDI (NNIP blog, May 2019)

Prudent leverage policies that properly manage duration risk can allow pension funds to control for interest rate risks while still achieving their objectives.

To Hedge or Not to Hedge: Assessing Currency Management Solutions (QMA, 2019)

Well documented risk premia present within the currency market may offer positive alpha for investors seeking to actively manage currency risk.

Generating Alpha in Bottom-Up Systematic Credit (Fidelity Intl, May 2019)

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

The authors provide an overview of factor investing in fixed income markets, then describe a particular portfolio construction methodology that may have the potential to minimize some of the pitfalls of factor integration while preserving the benefits of factor utilisation.

Investment Governance for Fiduciaries (CFA Institute Research Foundation, 2019)

This paper looks at fiduciary responsibility, examining the respective backgrounds and qualifications of the individuals who are tasked with the discretionary control over long-term assets within retirement plans, endowments, and foundations.

Are Asia's Pension Funds Ready for Climate Change? (Manulife AM, 2019)

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

This brief looks at Asian pension funds and Asian market indices in order to assess climate-related risks, including discussions of both mitigation and adaptation.

Machine Learning for Stock Selection (Financial Analysts Journal, 2019)

Can machine learning techniques also be considered practical tools for investment professionals? This paper provides an example of how machine learning could be used to forecast stock returns.

Investment Professional of the Future (CFA Institute, 2019)

This report considers how investment industry roles, skills, and careers (the employee’s lens) and the organizational context and culture (the employer’s lens) are shaping the attributes of the investment professional of the future.

How Asset Managers Can Win in a Winner-Takes-All World (BCG, 2019)

Within the asset management industry, the compounding of forces such as passive strategies, new regulations, fee and margin compression, and the need to go digital could force firms in one of two directions - shoring up defenses or becoming more aggressive.

Invesco Fixed Income Multi-Sector Asset Allocation Outlook Q2 2019

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

Invesco's top-down Q2 fixed income outlook begins with a macro overlay, followed by their regional and currency stance, before moving into strategic recommendations for fixed income sub-asset classes such as IG credit, HY, EM, munis, structured credit, and bank loans.