Top 20 Whitepapers of November 2018

The Most Popular and Trending Papers of November 2018

This month's list of top whitepapers offers a wide range of perspectives, from far-reaching questions about the future of the asset management industry, to examinations of the minute details of factor decompositions, with several stops in between. 

Be sure to catch FTSE Russell's paper on the value factor in fixed income, several surveys with data from top global asset owners, and Macquarie's recommendation to carefully examine the liquidity within portfolios. 

FTSE Fixed Income Factor Research Series – The Value Effect (FTSE Russell, 2018)

In an attempt to capture the value effect in fixed income, FTSE Russell defines the value factor using an OAS framework, then applies their analysis to the US IG corporate bond market.

US Pensions Risk: 3 Questions Plan Sponsors Should Ask (Capital Group, 2018)

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

Risk factors for US plan sponsors include interest rates, investment returns and PBGC premiums. Capital Group considers 3 questions that all plan sponsors should be asking.

Asset Owner Survey: Innovations in Implementation (bfinance, 2018)

The 2018 Asset Owner Survey from bfinance provides insight into the challenges that asset owners face, including entering a new asset class, managing specialist consultants, smart beta, ESG, and other topics.

Sustainable investing: a ‘why not’ moment (BlackRock, 2018)

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

BlackRock shows how to generate a sustainable investment portfolio without compromising return goals, possibly even enhancing risk-adjusted returns.

2019 Investment Outlook: Rising Above the Business Cycle (PineBridge, Nov 2018)

PineBridge's 2019 Investment Outlook is divided into 4 sections, covering the macroeconomic perspective and purviews into investment strategy outlooks for multi-asset, fixed income, and equity investors.

Combining Public and Private Debt (Neuberger Berman, 2018)

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

Neuberger Berman explains why fixed income investors should consider a one-portfolio solution involving both public and private debt.

Local currency EMD - Time to reconsider an active allocation? (Capital Group, 2018)

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

Capital Group discusses the benefits of an active allocation to EMD, including off-benchmark exposures, access to wider sources of returns, and more deliberate (and risk-aware) allocations.

Ethical Considerations in the Technology Sector (MFS, Nov 2018)

MFS looks at the ethical dilemmas within technology companies, including Facebook's recent Cambridge Analytica scandal. They then recommend a framework for evaluating ethical risks.

MindScope: How Should Investors Measure the Impact of Investing? (NNIP, 2018)

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

How do you quantify the actual impact that companies are having upon the environment and upon society? A positive impact can create a better long-term business model.

Portfolio Construction: Time to get your core in shape (BlackRock, 2018)

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

Evolving client needs, along with new technology and increased regulation have resulted in a re-examination of portfolio construction techniques, changing the way that index strategies are used in portfolios.

Smarter Beta via Optimization and Custom Risk Modelling (Axioma, Oct 2018)

This collaborative smart beta index combines CS HOLT's stock selection ability with the risk analytics and portfolio construction techniques at Axioma. It allows for factor harvesting while avoiding unwanted exposures.

Let's talk about actual investing - Q4 2018 (Baillie Gifford)

Baillie Gifford advocates a return to 'actual' investment - relying less on trading models, big data, and factors and returning to an environment of investments that provide financing to great ideas and projects within companies.

Indexing Risk Parity Strategies (S&P Dow Jones Indices, 2018)

S&P Risk Parity Indices represent asset classes using futures in an effort to replicate the risk and return characteristics of risk parity funds.

Diversification, Volatility, and Surprising Alpha (Intech, Nov 2018)

By decomposing a portfolio's returns into an excess growth and an average growth component, Intech aims to show how outperformance is attributable to factor exposures within the portfolio.

The Dramatic Consequences of the DB-DC Pensions Shift (Fidelity Intl, Oct 2018)

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

The shift from defined benefit to defined contribution pension schemes is well underway, but alongside this, many retirees are soon to confront harsh realities about the adequacy of their retirement savings.

The Future of Investment Management (CFA Institute Research Foundation, 2018)

The investment management industry is changing rapidly, due to smart beta products, ETFs, new regulations, new technology, and other factors. What will it look like in 5-10 years?

Is your liquidity just a mirage? (Macquarie, Oct 2018)

Because investors have forgotten the value of liquidity, now may be a good time for them to reflect on the ability of fixed income to foster capital preservation, and in doing so, to inquire whether their portfolio's liquidity is a mirage.

2018 Global Alternative Fund Survey: At the tipping point (EY)

The 56-page report has been authored by EY. It examines the disruption and change taking place in the alternative asset management industry - from technology, to investor expectations, to evolving talent profile needs.

Asset Owner 100: The most influential capital (Thinking Ahead Institute)

The Asset Owner 100 is a study with data from the top 100 global asset owners, including pensions, OCIOs, endowments, foundations, and sovereign wealth funds. These asset owners represent over USD 19 trillion of capital.

Crowded Trades: Sector Rotation and Factor Timing (State Street/MIT, 2018)

While investors can potentially profit by locating a bubble early enough, they must also time their exit properly. This paper explains bubbles and crowded trades in the context of sector rotation and factor timing.

Asset & Wealth Management Revolution: Pressure on profitability (PwC, 2018)

This PwC report provides interesting and important insights into the asset and wealth management industry today. It outlines four foundations on which managers can build a target operating model to protect or even improve profitability.