A joint report by the International Energy Agency and the Centre for Climate Finance & Investment at Imperial College examines the risk and return proposition in energy transitions. Across all portfolios examined, renewable power generated higher total returns relative to fossil fuel. The post Renewable portfolios outperform fossil fuels appeared first on Top1000Funds.com.
A leading U.S.-based consultant recently asked us to answer some great questions they had about low volatility, or defensive equity investing. We thought we’d share our answers more broadly because investors of all types frequently ask similar questions. The questions generally fall into one of five categories:
Juan M. Londono, Stijn Claessens, Ricardo Correa | We investigate how central banks' governance frameworks influence their financial stability communication strategies and assess the effectiveness of these strategies in preventing a worsening of financial cycle conditions. We develop a simple conceptual framework of how central banks communicate about financial stability and how communication…
No evaluation of defensive equity strategies is complete without an examination of their benchmarks; indeed, why not invest in a passive solution? The Journal of Index Investing spotlights this topic and more in a recent article written by Intech, and here’s a brief summary why we believe active management offers a number of advantages over Minimum Volatility Indexes.
Defensive equity indexes can vary substantially, even during market crashes, and in many ways more closely resemble active strategies than their cap-weighted counterparts. The Journal of Index Investing recently featured a paper by Intech that examines the pros and cons of MSCI Minimum Volatility Index construction to help you better evaluate your defensive equity managers.
Antiquated risk management practices will be forced to evolve to accommodate climate risks. By estimating the future instead of just measuring the past, risk managers will own the beliefs and strategies that underpin their projections researchers at FCLTGlobal predict.
The post Entrenched risk-management practices will yield to climate trends appeared first on Top1000Funds.com.
Judit Temesvary and Andrew Wei | We study how U.S. banks' exposure to the economic fallout due to governments' response to Covid-19 in foreign countries has affected their credit provision to borrowers in the United States. We combine a rarely accessed dataset on U.S. banks' cross-border exposure to borrowers in foreign countries with the most detailed regulatory ("credit registry") data that is…
Hitting over 30 all-time highs in U.S. equity markets this year may get you a bit closer to your funding, spending or plain happiness goals, but they may also invite an asset allocation problem, as the U.S. has considerably outperformed many non-U.S. equity markets.
We study the relationship between characteristics of new mortgages and borrowers’ financial stress in Canada’s energy-intensive regions following the 2014 collapse in oil prices. We find that borrowers with limited home equity were more likely to have difficulty repaying debt.