Our cover story focuses on the revolutionary area of artificial intelligence which, depending on your perspective, will transform humankind for the better or lead to a dystopian future where machines control the planet. We also look at Big Data and 3D printing and consider a world without central bank support and the future of asset management.
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.
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.
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.
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.
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.
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?
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.
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!
As a leading investor in private credit, learn why CPP Investment Board is attracted to the asset class in this Q&A with CPPIB's John Graham, Managing Director and Head of Principal Investments. Hint: Solid-risk adjusted returns is a significant factor.
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.
We are in the middle of a massive transformation of the asset management industry, as assets are increasingly shifting from active to passive. Which is better? We argue the “right” answer depends on an investor’s goals, risk tolerance, time horizon, and view on markets, among other factors.
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.
This paper examines the philosophical and fundamental underpinnings for the creation of the WisdomTree fundamentally weighted Indexes, showcases the impressive performance track record generated, indicates the factors we believe drove performance, and concludes with how we think these strategies fit into the U.S. equity market context today.
Asset price volatility is a concern for most investors. One answer is to use a volatility-controlled strategy; one that seeks to reduce the risk, while retaining much of the growth within the portion of a portfolio.
With the significant improvement of human lifespan, traditional retirement thinking does not adequately take into account the need for providing for the tail end of the lifespan in the form of a stable stream of retirement income.
What is driving the rise of populist parties in Europe, the election of President Trump, Brexit? We explore these issues alongside social and cultural changes globally and consider the implications for the future of globalization and for markets.
A new political and economic landscape is changing investors’ priorities and approach. The Schroders Global Investor Study shows that a focus on investment outcome rather than relative return is fuelling a significant rise in multi-asset and smart beta investing.
In this round table, James Macey, portfolio manager for Franklin Templeton Solutions, Ashwin Alankar, global head of asset allocation and risk management for Janus Capital Group, and Michael J. Kelly, global head of multi-asset for PineBridge Investments, discuss what multi-asset strategies can deliver, what they can’t deliver and how investors can use them to help meet their return objectives.
In A different kind of target-date investor, from Vanguard Center for Investor Research, authors examine how participants become mixed target-date investors, determine if the concerns raised about mixed target-date investors are valid, and suggest measures to avoid such risks.
Dividend strategies have gained a foothold with market participants seeking potential outperformance and attractive yields in the low-rate environment since 2008. Stocks with a history of dividend growth could present a compelling investment opportunity when rates are rising.
This paper will discuss what WisdomTree believes is one key factor to building smart beta indexes for U.S. equities: profitability. Incorporating profitability into the selection and weighting of its components is one element that sets WisdomTree apart in its earnings family of Indexes.
Research has found that asset allocation is the key driver of return variability for a diversified portfolio. Vanguard offers clarity with two questions: How does asset allocation affect risk/return expectations? And how much home bias is reasonable?
Jackie VanderBrug, managing director and investment strategist at Bank of America Global Wealth & Investment Management Chief Investment Office; Bruno Bertocci, senior portfolio manager and managing director at UBS Asset Management; and Tim Barron, chief investment officer at Segal RogersCasey, discuss advances in ESG in terms of impact, measurement and building customized solutions, and explain how integrating ESG factors can improve returns and reduce risk.
The majority of retirement-age DC plan participants leave their plan within five years of separation from service. Participants are more likely to remain when plans permit flexible distributions, having implications for target-date fund design and retirement income programs.
Tony Charles, global head of research and strategy for Morgan Stanley Real Estate Investing, Jim Clark, senior vice president and client portfolio manager at Nuveen Asset Management, and George Milling-Stanley, head of gold strategy at State Street Global Advisors, provide insight into why and how real assets can be a reliable investment choice today.
In this roundtable, Matthew Soifer from BlackRock, Robert Collins from Partners Group, and David Skinner from PGIM Real Estate, explain how a range of strategies are being retooled specifically to meet the needs of the DC market, where plan sponsors are looking for ways to help participants achieve better results in a world of mediocre returns from traditional asset classes.
Investors are increasingly making decisions based on short-term market trends due to the role of incentives, the media, financial reporting, and other decision-making biases. But there are opportunities for differentiated performance when investors hold securities for longer periods.
What happens when longer retirements meet lower returns? DC plan participants need action and guidance to prepare. Explore BlackRock’s The Changing Equation: Building for Retirement in a Low Return World.
New tools from Vanguard can help determine if plan participants could benefit from a glide path designed for unique participant populations. Vanguard explains the inner workings of their proprietary model for glide path construction.
In today’s low interest rate environment, sponsors of underfunded pension plans can borrow at attractive rates and contribute the proceeds to their pension plan, thereby reducing or even eliminating their pension deficit, while having the potential to create shareholder value.
Are overzealous monetary policies contributing to market volatility? Are the aggressive policies of the BoJ and ECB inflicting more harm than good? We also consider where policies are headed next and why this should support the bond markets.
The age of DB may be over but many of its principles can be used to improve DC plans. BNY Mellon has revealing insights into how DC plan sponsors are drawing on DB best practices to increase efficiency.
As DC plans increasingly replace defined benefit plans, responsibility for retirement readiness has shifted to employees. Auto-enrollment and auto-escalation help, but how else can we prepare participants to shoulder responsibility for their retirement outcomes?
Active management advocates say managers should hold portfolios of just the securities in which they have the highest confidence. But growing “high conviction” investing is likely to increase risk, make manager skill harder to detect, raise asset owners’ costs, and reduce the number of outperforming funds.
Slow economic growth. Mountains of debt. Central bank buying. Negative bond yields. Rising inequality. Find out how the macroeconomic and policy failures of developed economies led to rising political risk, how these risks interact, and the implications for fixed income strategies.
The funded statuses of defined benefit plans continue to struggle. QMA's US Market Participation Strategy—with its asymmetrical return profile and low correlation to other growth assets—provides an effective solution for draw-down risk while still seeking long term returns.
The Department of Labor set a clear framework for defining when communications to retirement plan participants and IRA owners constitute advice. Knowing where the line is drawn between communications that trigger fiduciary status and those that do not will be an important element in managing your fiduciary risk exposure.
QMA discusses the characteristics of different types of active equity managers and examines the advantages of combining a quant approach with indexing. We also consider the implications in target date funds and how fulfillment choices impact retirement savings and income.
Recently, smart beta strategies have captured the attention of many investors. In Smart Beta and the Evolution of Factor-Based Investing, PNC Capital Advisors, a long-standing advocate and practitioner of factor-based investing, discusses smart beta and the progression to factor-based investing.
Prudential Retirement commissioned a survey that asked plan participants their thoughts on plan design features. This whitepaper takes an in-depth look at the findings and suggests ways for plan sponsors to better meet participant needs and expectations.
Active extension, equity long-short, and equity market neutral products can be attractive for investors at any particular time, given investors' varied investment objectives and needs. QMA's paper describes how short selling can allow investors to find alpha in often overlooked places.
Artisan Partners Growth Team examines an area of the market where it is finding growth opportunities despite a sluggish macro environment: Companies capitalizing on compelling internal change catalysts.
In this roundtable discussion, Adrian Helfert from Amundi Smith Breeden, Arnab Das from Invesco Fixed Income, and Ellen Gaske from Prudential Fixed Income, explore the impact of the Brexit vote, what investors need to know now and where long-term investment opportunities lie.
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