The Most Popular and Trending Papers from May 2017
We've expanded our monthly roundup to make it a "Top 20". Themes this month include the future of UK asset management, factor investing, manager selection, secular economic themes, equity volatility and liquid alts.
All of these papers are free to access for Savvy Investor members.
Brexit - What It Means for Investment Management (CFA Institute, May 2017)
This guide has been written by CFA Institute. It explores the legal and regulatory considerations following Brexit and analyses the possible outcomes.
The economy looks grim in the long-term (Ray Dalio, May 2017)
In this blog post, Ray Dalio of Bridgewater Associates explains why he believes that the near-term outlook for the global economy is promising while the long-term outlook is gloomy.
Bridging the Gap: Adding Factors to Passive and Active Allocations (MSCI, 2017)
Asset owners face a challenge in determining how the factor allocation fits into the overall equity program. This paper by MSCI uses a risk budgeting framework to investigate how active mandates and factor allocations can be combined.
Manager Selection: Shining a Light on Shadow Searches (eVestment, May 2017)
In the past few years, there has been a significant shift in how institutional investors and consultants are approaching manager selection and research. This paper discusses some of the recent trends in screening activity.
The Deep Causes of Secular Stagnation and the Rise of Populism (GMO, 2017)
In this paper, James Montier and Philip Pilkington of GMO argue that the rise of populism has its roots in the same sources that have given rise to so-called “secular stagnation.”
What makes EM fixed income attractive – even under Trump? (BNP Paribas, 2017)
This paper by BNP Paribas explores the Emerging Markets Fixed Income asset class and its prospects under the Trump administration. The authors look at what the President has been saying and what may happen in reality as a result.
Some Reflections on Japanese Monetary Policy (Ben Bernanke, May 2017)
This speech by Ben Bernanke, former Governor of the U.S. Federal Reserve, was delivered at a recent conference hosted by the Bank of Japan.
Robo-advice isn’t a hype that will go away (Robeco, May 2017)
In recent months, the future of "robo-advice" has become a keenly-debated topic. This paper by Robeco explores why the hype won't go be going away any time soon.
Smart beta: 2017 global survey findings from asset owners (FTSE Russell, 2017)
Now in its fourth year, FTSE Russell’s comprehensive survey of global asset owners focuses on key themes behind the adoption, evaluation and implementation of smart beta.
Managing equity portfolio volatility by harnessing volatility (Eaton Vance)
This eight pager from Eaton Vance examines the use of option-based strategies that seek to harness the Volatility Risk Premium.
Investing in Liquid Alts: An Outcomes-Based Approach (QMA, Apr 2017)
Liquid alternative strategies have emerged as viable and popular investment options. This paper examines how the broad classifications used by retail databases can themselves make it harder for investors to find the best strategies.
Wholesale Banks & Asset Managers: Upside Down (Oliver Wyman/Morgan Stanley)
This paper suggests that in a reversal of fortunes, Asset Managers now face intensifying top-line pressures from cheap beta and regulations, while Banks are primed for upside with regulatory shifts helping to drive RoE up by ~300bps.
John Greenwood Quarterly Economic Outlook (Invesco, Q2 2017)
(This paper is not accessible in certain geographies)
U.S. equity markets have so far reacted positively to the early days of Trump’s presidency but is the “reflation trade” now losing momentum? John Greenwood, Chief Economist at Invesco discusses this and other macro-economic issues.
Global Investment Management Fees: New Savings, New Challenges (bfinance, 2017)
This 16-page report from bfinance provides insight into fees in asset management, the trends and pressures.
Carbon: How investors can leverage carbon data (UBS Asset Management, 2017)
Much of the investment industry has begun incorporating carbon emissions data into investment decisions, but the way forward is complex and requires analysis that goes beyond standard carbon emissions data.
Asset Management in Europe (EFAMA, May 2017)
This 46-page paper takes a detailed look at the European asset management industry with a special focus on the Capital Markets Union. The paper includes insights into the role of third-party asset managers and more.
Emerging Market Corporate bonds – coming of age (Aberdeen AM, May 2017)
Emerging market debt is an asset class that continues to defy the odds. Despite concerns of high debt levels, growing geopolitical risks and sluggish global growth, it has once again delivered another year of impressive results.
Institutional Investors Can Benefit From Preferred Securities (Cohen & Steers)
This paper by Cohen & Steers discusses how preferreds may improve income profiles and risk-adjusted returns within diversified portfolios due to their unique and complementary characteristics.
Multi-assets markets outlook (monthly) Robeco, May 2017
This document by Robeco provides insights into the outlook for multi-assets, such as commodities, bond and equities. The authors provide brief analysis for the United States, Europe, Japan and China.
The Carbon Scorecard (S&P Dow Jones Indices, May 2017)
This report by S&P Dow Jones Indices assesses the carbon risks and opportunities of major global equity indices.