With a wealth of smart beta indices to choose from, market participants may find it difficult to decide when each factor-based strategy is best suited to deliver returns. Is it wise to rely solely on the performance of one factor? If not, what multi-factor approaches could be considered and how effective are they?
In PGIM Real Estate’s latest Investment Research paper, we look beyond the cycle to assess values we are seeing today in a long-term context. Our analysis of the global property risk premium suggests that pricing looks sensible in a long-term context and offers decent protection against a moderate increase in interest rates.
Arguments against the ability of active strategies to outperform market benchmarks fail to differentiate the many active management approaches available to investors. A recent ClearBridge analysis identifies turnover rate and number of holdings as determinants of performance among active strategies.
Today, institutional investors are well versed in the arguments typically advanced for investing in emerging market debt (EMD); not least, arguments about diversification and yield pickup. However, in reality, interest in this asset class is often tempered by the challenges institutional investors experience in deciding on a correct allocation strategy and the perception that an allocation to this asset class appears to demand a disproportionately large proportion of their risk budget for what is usually a small allocation.
Investors in EM debt have traditionally pursued bonds issued in an advanced country's currency, but today there is a more robust sector of locally denominated bonds. We believe this sector features more attractive risk/reward characteristics than ever before.
A Northern Trust sponsored survey of 200+ asset managers and investors reveals evolving priorities around transparency and risk, as well as a need for industry consensus with regard to governance. Gain insights into alternatives and download the paper today!
In our cover story, Aviva Investors looks at whether national self-interest in the US, China and Russia will lead to the emergence of new spheres of influence, and the potential economic and market ramifications.
More than 10 years ago, we launched a series of earnings- and dividend-focused core beta ETFs to finally give open-minded investors a chance to break the shackles placed on them by the S&P 500, an index that we think was invented with little thinking and that became “the benchmark” almost solely because it was the first one to exist.
The Participant Magazine, State Street Global Advisors Defined Contribution flagship publication, takes a deeper look at longevity in this special issue. It explores how increasing human life spans are creating new opportunities and challenges for retirement savers.
Can factor investing help target date funds achieve their objectives? Explore how carefully selected smart beta exposures can be implemented within the glidepath to seek additional return for younger participants and reduced volatility near retirement.
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