Value investing has been bruised and battered over a number of market cycles, but today, institutional investors should look beyond the traditional value metrics and keep a close eye on the macro economic environment, which is shifting to one that will benefit value.
One of the key reasons hedge funds rose to stardom was the need for uncorrelated returns. But given the mixed results of hedge funds in recent years, do their merits justify the fees?
In PGIM’s latest white paper, we take a closer look at the escalating tussle between globalization and nationalism, the implications this could have for global financial markets, and how long-term investors may best position themselves to navigate these uncertain times.
Introducing Shifting DC Times, a thought-leading publication devoted to supporting your mission — to help American workers achieve a more secure retirement. Each issue focuses on the latest DC thinking and offers concrete ways to turn that thinking into action.
Is it time to declare that the world’s second largest economy and equity market is an asset class? We developed a framework based on comprehensive research that shows China is more than just an opportunity, it's a strategic investment category.
The superstar FANG stocks — Facebook, Amazon, Netflix and Alphabet’s Google — still grab a lot of headlines, but investors might be better served ignoring them and focusing on more boring sectors of the market, such as autos, tech hardware and semiconductors.
We believe successful investment in international growth equities requires having a differentiated view and a willingness to own overlooked and out of benchmark growth companies. A valuation approach to growth points us to opportunities and contributes to risk management.
Pension deficits will not resolve themselves. Billions of dollars have been contributed to fund up plans in 2018. Why? There has never been a better time to make a contribution, close funding gaps, and take steps to meaningfully reduce risk.
Our Annual Stewardship Report showcases some of the work we undertook in 2017 to enhance diversity at the board level, strengthen board leadership and improve disclosure on sustainability practices.
A growing number of multi-national companies are embracing a globally-coordinated approach to managing their retirement plans. To help you build on your retirement plan vision, BlackRock has created a framework for designing global retirement principles and governance.
We believe today’s automotive industry—more than at any other time in its history—presents opportunities for active managers to uncover value. In this paper, we discuss how advanced driver-assistance systems, ridesharing, and electric vehicles are driving change across the industry.
New survey shows multimanager target-date funds are now the majority’s preference What’s behind this sea change in plan design? Fiduciaries directing plan participants to QDIAs dominated by manager concentration risk need to see these survey findings now.
China is home to some of the fastest-growing and best-in-class businesses in the world and will be the beneficiary of increased institutional investor positioning in the market as capital market integration continues down its present path.
PGIM Fixed Income examines how an actively-managed, hedged global bond portfolio can reduce volatility and improve return efficiency relative to a domestic-only, fixed income allocation over the intermediate to long term.
Historically, many asset owners haven't created separate allocations for microcap. However, that seems to be changing as investors recognize the compelling case for microcap investing, both as a standalone asset class and the role it can play in asset allocations.
Are multiple factors better than one? Find out why some market participants are allocating to more than one factor at a time, and what types of multi-factor approaches may produce the most targeted, precise exposure.
Gold can play a fundamental role in a portfolio. Our analysis shows that adding 2%, 5% or 10% in gold over the past decade to the average pension fund portfolio would have both increased returns and reduced volatility, resulting in higher risk-adjusted returns.
Despite tight credit spreads, Artisan Partners Credit Team believes the benign credit backdrop of strong economic momentum and low default activity should create a favorable environment for high yield investors going forward.
In June 2018, FTSE Russell announced the launch of the FTSE Global Micro Cap Index Series, extending target coverage of the FTSE Global Equity Indexes (FTSE GEIS) to over 99% of developed and emerging markets globally
In this round table discussion, Gary Veerman, head of LDI solutions at Capital Group, François Pellerin, an LDI strategist in the fixed-income division at Fidelity Management & Research Co., and James So, a product specialist at Western Asset Management Co., discuss how plan sponsors are approaching pension derisking, what mistakes they often make and what the future holds.
As a long-standing provider of employee benefits; Prudential sponsored a survey to gain perspective on how employers think about their benefits programs overall, and gauge the role that financial wellness programs play.
In this round table discussion, K. Stuart Peskin, investment director at Aberdeen Standard Investments, Danielle Singer, portfolio director, multi asset, at Invesco, and Mark Andersen, senior vice president at Callan’s Trust Advisory Group, discuss the opportunities and challenges for investors, and the outcome-orientation of multi-asset investing strategies for optimal positioning in all types of market environments.
Explore reasons why the A-share market is appealing to institutional investors, including improving governance and a fast-growing private sector.
We believe China’s risks for a hard landing have decreased due to a confluence of positive forces. Our optimism is driven by better quality economic growth involving an increased role for the private sector and effective shadow banking regulation.
Using the DuPont model to examine ROE and future dividend growth potential.
Emerging market equity (EME) allocations among investor types vary greatly, with renowned institutional endowments significantly overweight the asset class compared to others. While investors have embraced the return potential of private equity, EME allocations generally remain stagnant, with many simply matching their regional allocation to the MSCI All-Country World Index. We assess the differences and encourage return-seeking investors to revisit their EME allocations.
Restrictive trade policies and populist politics are serious hazards for a global economy that is more interconnected than ever before, but new technological advances in automation and artificial intelligence may be even bigger risks to the ongoing pursuit of globalization. Find out why and how investors can respond.
Our Investment Quarterly Magazine discusses the forces that will influence corporate performance — and, ultimately, asset prices — as the age of easy money draws to a close.
Equal-weight indices were among the first non-capitalization-weighted indices to emerge as vehicles for passive investments and have demonstrated outperformance in multiple global markets. This paper explores the sources of this outperformance and potential applications of these strategies in a portfolio.
Will today’s workers actually get the short end of the stick when it comes to generating retirement income? Learn more about new tools and information that can help create more consistent spending for future retirees.
This paper describes corporate and governmental organizations appealing alternative funding of pension plan obligations using owned real estate. In a manner consistent with legal and ERISA requirements, large in-kind contribution credits and freedom from future cash payments can be achieved.
Alger asked Greenwich Associates to explore the appetite for and popularity of focused strategies. The Power of Focus: Looking for Alpha in a Sea of Beta indicates that the need for increased alpha is driving the shift toward focused strategies.
In a global rising tide, small craft may get a bigger lift than cruise ships. International small-cap stocks offer a large opportunity set, strong historical performance, diversification benefits and a somewhat lower risk profile than U.S. investors might expect.
PGIM Fixed Income investigates drivers of global inflation by analyzing developed and emerging market countries using three sets of variables—domestic (unemployment, labor costs, money supply), external (exchange rate, import/export prices) and global (global inflation, output gap, commodity prices.)
Pushed by institutional asset owners, more companies get on board, but lack of consistency hampers wider adoption
The study explores six key themes within the fixed income asset class through the opinions and experiences of 79 leading fixed income specialists across pension funds, sovereign investors, insurers and private banks around the world.
Recent research has turned up something surprising about our most current generation of retirees: The vast majority haven't been spending their retirement savings—leaving nest eggs mostly untouched. However, future retirees may be less fortunate.
The CRE market has undergone a significant recovery since the 2008-2009 global financial crisis. However, not all segments of the market have participated equally in the recovery – including within the CRE debt market.
When financial wellness works, we all benefit. It's what Prudential calls "The Wellness Effect." This paper presents Prudential's unique perspectives on financial wellness, along with best practices for implementing financial wellness solutions.
Public companies create impact due simply to their global reach, deep supply chains and communities where they operate. Asset managers can enhance the impact and performance of public equities by actively allocating to those having a positive influence on society and the planet.
Explore the 2018 investment landscape the Macquarie way: with an eye that’s open to change and opportunity, and with a spirit of innovation and healthy wariness for conventional thinking.
Positive fundamental changes in emerging markets over the past 10-15 years, along with robust economic growth and the proliferation of emerging-market debt (EMD) indices, have helped transform EMD into a mainstream asset class. Growing interest in EMD has led to increased resources dedicated to these assets and expanded access for investors, adding to the complexity of making allocation decisions relating to this asset class.
Dividends are a key contributor to total equity returns. This paper studies whether incorporating free cash flow yield into dividend analysis can deliver superior risk adjusted returns than pure dividend yield or free cash flow yield portfolios, without sacrificing income.
Our annual Global Market Outlook forecasts a year supportive of risk assets, but with a note of caution for investors as the growth cycle extends.
If we think back to the performance with which we as U.S. investors are most familiar, it is that of U.S. equities. The simple fact has been this: The more exposure one has had to U.S. equities, the better the returns have been over most of the past decade. While we don’t think there are any immediate signs of the U.S. bull market run ending, non-U.S. small caps have begun to outperform U.S. small caps, and their valuation advantage remains compelling.
Everyone knows what makes a quality benchmark — or do we? Learn more about the core principles of benchmark design and the inevitable trade-offs required to make the most practical index tools.
Emerging markets have evolved considerably in the last 10 years ago. However, dispersion of performance between individual emerging markets countries is still evident, reinforcing our view that an active management approach is the best way to approach the asset class.
With real estate becoming more firmly established in the wider multi-asset investment universe, it’s important for investors to understand the scale of its opportunity set. In this paper, PGIM Real Estate estimates the size of real estate markets around the world.
Xi Jinping is set to begin another term as Chinese President--and become the most powerful Chinese leader since Chairman Mao. What does this mean for China and the world? Find out in the latest AIQ magazine from Aviva Investors.
“Smart beta” or fundamentally weighted strategies have become an increasingly popular way for investors to allocate to equity markets in recent years, as weighting by market capitalization does not always lead to the most efficient portfolio. This trend has been slower to develop in fixed income, but our sense is that this may be starting to change.
The global economy is entering a period of balanced growth that should alter how equities are valued and create greater opportunities for active managers. Characteristics unique to international markets should allow active managers to capitalize on trend changes and mispriced stocks.
The S&P Shift to Retirement Income and Decumulation (STRIDE) Index Series incorporates an innovative risk management framework focused on providing increasing levels of clarity and stability around sustainable annual consumption in retirement. This paper tests S&P STRIDE’s approach to consumption risk management and asset allocation over the period 2003 to 2016.
What could the growth of passive investing mean for the market? Learn more about the influences at play on the markets, the investment industry and pricing.
Engines of EM growth will be reshaped over the next decade. Which opportunities and risks should investors focus on?
Passive portfolios often fail to fully deliver benchmark returns on a consistent basis due to the complexities and inefficiencies of fixed income markets. In light of these realities, investors could benefit from a smarter approach to bond indexing.
We’re concerned that investors are focused more on urging action than developing risk management solutions. With nearly 20% of corporate earnings potentially depleting to meet carbon price targets, we introduce Carbon VaR as a new tool to manage climate risks.
Is your DC plan ready for the shift from saving to retirement spending? As today’s employees retire, they will increasingly want (and need) assistance to translate their retirement assets into income. Explore how DC plans can help provide a solution.
Markets have finally entered a new regime of improving confidence, growth, leverage, and prices. For investors, success ahead will require a more active approach.
Disruptive forces across markets, industries and global demographics are driving new thinking and opportunities for investors. Our Investment Quarterly magazine analyses the trends and how investors can capitalize on them.
Research shows that a life-cycle financial planning framework can help investors reduce “living standard risk”. The paper “Rethinking Portfolio Analysis: Living Standard Risk and Reward over the Life Cycle” says this framework can help improve investors’ spending and investment decisions.
Getting you to your destination while avoiding turbulence along the way. At Conning, our experienced Liability-Driven Investment (LDI) team delivers customized investment solutions for pension plans throughout their de-risking journey. For more than 30 years, we have delivered innovative, asset liability focused investment mandates for pension plan and insurance clients, and our commitment to disciplined pension risk management is the cornerstone of our LDI philosophy.
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