Every so often it makes sense to recalibrate one's expectations of medium and short-term events, given changes that have occurred to the long-term outlook for global asset classes. With this in mind, we present below some recent updates from MFS, PineBridge, Invesco and other asset managers on their long-term capital market assumptions.
LONDON/DUBAI (Reuters) - Saudi Aramco’s biggest asset could also be a liability. The state energy giant’s vast oil reserves – it can sustain current production levels for the next 50 years – make it more exposed than any other company to a rising tide of environmental activism and shift away from fossil fuels.
The basis for evaluating and selecting asset managers for ESG investing are no different from those used for conventional evaluations: philosophy, process, and people. But to ensure your managers align well with your ESG investing goals, you’ll want to overlay ESG perspectives.
Given the necessity of research and development within the healthcare industry, it has always been a sector that has been rife with innovation. But how are new digital tools like big data, AI, and predictive analytics affecting change within healthcare and other sectors?
Traditional, long only portfolios will naturally access risk premia through exposures to the equity risk premium and the bond term premium. Alternative Risk Premia strategies seek to harvest other types of risk premia, often utilising both long and short exposures. Wellington Management describes these strategies as falling into four broad categories - trend, carry, convergence, and…
The transition from LIBOR to SOFR has been slow. We present some key reasons for the delay in SOFR’s broader integration into markets. Important bottlenecks include lags in the evolution of SOFR-based swaps and derivatives markets and in the development of a term SOFR structure.
Over the 15-year period ending March 31, 2019, the biggest 25% of active large-cap equity funds managed about 90% of all the assets under management (AUM) held in active large-cap equity funds. This may suggest that investors’ fund selections skew toward larger funds. But is bigger always better? This topic has been widely debated: although larger funds may be able to hire more skilled fund…
We need to solve climate change, but we also need to make sure that the cure isn’t more painful than the disease. Abandoning fossil fuels as quickly as possible, as many environmental activists demand, would slow the growth that has lifted billions of people out of poverty.
We introduce a new proxy for measuring corporate bond liquidity, using the price of exchange-traded funds (ETFs) that hold corporate bonds. It measures the average liquidity across 900 corporate bonds every day, many more than other proxies used in previous Bank of Canada analysis. The new proxy nonetheless paints a very similar picture of liquidity conditions and confirms the previous…
A rapidly changing environment is driving the need for treasuries to review, revise and futureproof their liquidity management. The good news is that this is now far less of a challenge than it would have been just a few years ago.