Stock Selection and Analysis - Articles & White Papers

PGIM's latest Megatrends paper, “The Future Means Business: Investment Implications of Transformative New Corporate Models,” draws on the insights of more than two dozen PGIM investment professionals across our private and public fixed income, equity, real estate and alternatives managers – as well as a new proprietary…

Among other things, this 50-page issue of Invesco's Risk & Reward report examines a variety of themes, for example: (i) a factor-based buy-and-hold strategy for bonds (ii) integrating low volatility style exposure into core equity factor investments (iii) equity factor timing, and more.

Approximately 30%–40% of the variability in global individual equity securities can be explained by top-down country and industry memberships. Active management of global equity portfolios in the asset management industry, however, focuses almost exclusively on bottom-up security selection approaches, either minimizing or…

Among other things, this 50-page issue of Invesco's Risk & Reward report examines a variety of themes, for example: (i) a factor-based buy-and-hold strategy for bonds (ii) integrating low volatility style exposure into core equity factor investments (iii) equity factor timing, and more.

Studies have shown that pension funds have inherent biases to their domestic markets within their equity allocations. In this paper, FTSE Russell seeks to understand the impact of home bias in the equity allocations of five large pension fund markets—the US, UK, Japan, Canada, and Australia—by examining the extent of their…

Invesco's 4th annual Global Factor Investing Study is based upon interviews with over 240 instutional investors and is the largest in-depth analysis of global factor investing.

This year’s market downturn has sparked renewed interest in defensive equity investing. This eBook offers a fresh look at this mature investment category: What is it? Why does it appear to deliver? What outcomes should you expect? What are some key issues to consider? What’s the case for using it?

This year’s market downturn has sparked renewed interest in defensive equity investing. This eBook offers a fresh look at this mature investment category: What is it? Why does it appear to deliver? What outcomes should you expect? What are some key issues to consider? What’s the case for using it?

Investors have traditionally relied on mean-variance analysis to determine a portfolio’s optimal asset mix, but they have struggled to incorporate private equity into this framework because they do not know how to estimate its risk. The observed volatility of private equity returns is unrealistically low because the recorded…

This paper explores changes in the global equity opportunity set over the past decade, and asks if clients' equity allocations today are aligned with capturing that opportunity. It outlines various practical considerations for clients considering allocating to global equities.

Factor strategies differ significantly in terms of portfolio construction, with a debate regarding the methods used in portfolio construction approaches. In this paper, FTSE Russell extends itsTilt framework to encompass explicit exposure targets and examine the implications of this, from both an investment solution and a…

S&P Dow Jones Indices (S&P DJI) publishes a series of low volatility indices, offering market participants a perspective on the returns of lower volatility equities and forming the basis for index-linked products globally. Low volatility indices have typically outperformed their underlying broad market benchmarks on…

This paper explains the STOXX approach to its family of thematic indices, familiarizing readers with the data sources and the related index construction methodologies used to incorporate them, develop the concept and the rationale for each identified thematic, and analyze the resulting indices. This includes using basic…

Short Put Spreads (SPS) allow investors to limit their downside risk in exchange for limiting upside returns. The strike prices of the long and short put options that comprise a SPS determine these upside and downside return limits. This paper compares the performance of static and dynamic methods for selecting strike prices…

This paper by FTSE Russell explores the investment impact of the large and persistent home bias in the equity allocations of the five largest European pension fund markets since the global financial crisis.For this study, we examined the characteristics, performance and return-to-risk profiles of the equity markets in France…

This paper by FTSE Russell provides an in-depth analysis of the carry concept in bond markets. It's a well-known concept to practitioners and academics which has been leveraged in the currency markets for decades. With the understanding of such FX carry trades becoming established, recent academic publications have explored…

This paper by S&P Dow Jones Indices examines the potential benefits of blending high dividend and low volatility strategies in the China A-share large-cap equity market.

An analysis of potential investment returns to the year 2100 led us to consider four themes that we think will have a pervasive influence over the rest of the century: low bond yields, demographics, climate change and technological innovation. All four are interlinked, with feedback mechanisms from one to the other. We…

Do ESG factors add to, detract from, or have no effect on financial returns in EM equities? Using a detailed, methodical approach, strategists at Candriam seek to answer this question.