Equities

Tackling the Challenges of ESG Investing as Opportunities Expand Across Asset Classes

Published by: IMPACT Community Capital, Newton Investment

In this roundtable, executives discuss different approaches to ESG and impact investing, how it has expanded across asset classes, how investors might think differently about data gaps and the benefits of ESG and impact investing, and what excites them about this rapidly growing part of the investment world.

A Multi-Factor Strategy for Index Enhancement

Published by: QMA

Many investors are hard-wired to overpay for “lottery” and “safety” stocks. QMA proposes a way to enhance index exposures by avoiding both.

High-Yield Credit: What’s in Your Wallet?

Published by: WisdomTree

What does 2019 have in store for the high-yield sector? Kevin Flanagan, WisdomTree's Head of Fixed Income Strategy, discusses why investors might want to take a closer look at their high-yield holdings and consider upgrading their credit quality.

Cautious – Patient – Selective: A New Mindset for a Shifting Risk and Low Expected Return Environment

Published by: Janus Henderson Investors

Debates abound on what to make of financial markets’ recent behavior. We assess the fundamentally driven changes and outline several levers of active management that investors can pull to help close the return gap.

China’s Local Equity Market: ‘…How and Where and Who’

Published by: Aberdeen Standard Investments

Why should you care about A-shares? How do you invest? Is investing worth the risks? Our latest thought leadership paper, China’s Local Equity Market: ‘…How and Where and When’ seeks to answer these questions.

Don’t Judge a Private Equity Fund By Its Number

Published by: Barings

Amid a crowded fundraising landscape, first-time GPs are often overlooked as LPs make larger commitments to fewer, established names. But emerging managers are challenging the status quo by typically delivering higher returns to investors—with women and diverse managers often topping the list.

European private debt in 2018 and the year ahead

Published by: M&G Investments

In this European private debt review of 2018 and outlook for 2019, we explore the key trends emerging in each of the private debt sectors and what will be important to navigate the ever-changing market through 2019.

How the Risk Measures play important roles for Tail Risk Management and Diversification

Published by: Nissay Asset Management Corporation

In multi-asset allocation framework, this paper proposes the effective tail risk management using two risk measures, lower tail-dependence based on Copula and CVaR. This paper also seeks the enhanced Risk Parity Portfolio using co-integration relationship in multi period optimization problem.

Indexing Risk Parity Strategies

Published by: S&P Dow Jones Indices

Risk parity strategies embody diversification—across time and asset classes. However, because there are so many ways to implement these strategies, it can be difficult to define an appropriate benchmark. Discover one transparent, investable solution.

Inflation and target date funds: Definitive insights into inflation-hedging

Published by: BlackRock

At what point should target date funds hedge against inflation? This paper seeks to quantitatively solve for inflation-hedging within a lifecycle consumption framework, explores the relationship between human capital and inflation, and expands BlackRock’s innovative target date optimization to provide insight.

Market Volatility: Consequences for Target Date Fund Selection

Published by: PGIM Investments

With the return of market volatility after a decade of strong equity returns, understanding fiduciary responsibilities and maintaining a prudent process around target date fund evaluation and selection has never been more important.

The Technology Frontier - Investment Implications of Disruptive Change

Published by: PGIM

We are living in an era of unprecedented technological change. As such, we believe the implications for investors will be profound. PGIM's latest megatrend research examines how technology is unleashing disruption beyond Silicon Valley and transforming investment opportunities across industries, asset classes and geographies.

Understanding Market Sentiment: What Every Equity Investor Should Know

Published by: State Street Global Advisors

In two recent commentaries, Olivia Engel, CIO of Active Quantitative Equity at State Street Global Advisors, discusses the market sentiment theme and how it can impact stock-picking and valuation.

European real estate debt: protection across market cycles

Published by: M&G Investments

At M&G, where we typically originate the majority of our real estate loans directly with borrowers, our underwriting process enables us to include tailored covenant packages that provide downside protection for our investors.

Defense Beyond Bonds: Defensive Strategy Indices

Published by: S&P Dow Jones Indices

Given current interest rate levels, it’s fortunate that not all defensive strategies rely solely on bonds or going long on equities. Combining well-chosen defensive factor indices with the S&P 500 and bonds has historically resulted in reduced portfolio volatility, as well as incremental returns.

Emerging Markets: Finding opportunity in uncertainty

Published by: Artisan Partners, Barings, BMO Global Asset Management

A panel of emerging market experts that includes Maria Negrete-Gruson, managing director and portfolio manager at Artisan Partners; Ricardo Adrogué, head of emerging markets debt at Barings; and Claire Franklin, portfolio manager at BMO Global Asset Management discuss the macro-environment, share company and country specifics, and offer insights on where to look past the headlines.

Investing in China: Finding Opportunity With a Long-Term View

Published by: Aberdeen Standard Investments, Chautauqua Capital Management, Matthews Asia

P&I roundtable of experts spotlights opportunities and cautions that investing in China requires a close watch on a sentiment-driven market, government policy and the ongoing trade situation.

Best Practices in Factor Research and Factor Models

Published by: MSCI

Factors define the sources of portfolio risk and return. MSCI factor research is firmly grounded in academic theory and empirical evidence while MSCI factor models are based on robust econometric techniques and reflect best investment practice.

Best Intentions: The unintended consequences of plan design

Published by: BlackRock

Defined contribution plan sponsors want the best outcomes for participants, but plan improvements can also bring unexpected consequences. To help understand how this can occur, BlackRock applies deep participant-level data analysis to three real world case studies—and reveals surprising results.

Gold Investor: February 2019

Published by: World Gold Council

Ken Rogoff on gold in a cashless society and more

Is Your LDI Strategy Recession Ready?

Published by: PGIM Fixed Income

Should you stay on the funded status rollercoaster or move toward a recession-ready LDI strategy? In this paper, Tom McCartan of PGIM Fixed Income shares practical steps U.S. corporate pension plans can take now to protect their funded status ahead of the next recession.

Floating Rate Treasuries: Taking the Mystery Out of the Treasury’s Latest Success

Published by: WisdomTree

The U.S. floating rate Treasury note has grown into a $357 billion market, generating robust investor demand and providing the Treasury with needed flexibility in managing the duration of its liabilities. For more than a few investors, however, the securities remain a curiosity.

Blockchain solutions to ESG problems

Published by: BMO Global Asset Management

Cryptocurrencies have been surrounded by hype and controversy - but the technology behind them, blockchain, is rapidly demonstrating its potential as a powerful sustainability solution. While offering advantages in many ESG related areas this relatively new technology has several issues to overcome.

Divesting to Create Shareholder Value: Pension Plans Through A Divestment Lens

Published by: Prudential Retirement

DB pension plans divert resources from the core business, constrain cash flows and limit performance. Since decisions to divest and decisions to de-risk a pension obligation are driven by the same factors, pension risk transfer should be viewed through a divestment lens.

Finding Winning Funds through Factors

Published by: Style Analytics

The investment industry has firmly embraced factor investing as a way to try to generate superior returns and manage risk, but have the benefits of analyzing factors within portfolios been fully recognized?

Income for the Retirement Years: A New Model for Seeking Stable Retirement Income

Published by: PIMCO

Retirement planning decisions – when to take Social Security, how to allocate assets and whether to buy an annuity – are complex and interrelated. We present a framework that aims to optimize these decisions collectively and seeks stable and consistent retirement income.

Small Stocks, Large Opportunity

Published by: THB Asset Management

International micro cap equities are an overlooked asset class that can provide investors with an opportunity to generate significant alpha, increase diversification, and complete or enhance existing portfolio allocations.

The Happiness Formula

Published by: State Street Global Advisors

Exploring retirement realities around the world reveals areas of uncanny consistency, persistent gaps, and a formula for happiness. Learn more at www.ssga.com/gr3

The volume of disclosed information and impression management affect ESG evaluation

Published by: Nissay Asset Management Corporation

ESG scoring has become a popular tool for investors and portfolio managers but they should understand that ESG scoring comes with some bias. Nissay Asset Management uses a simulation model to analyze the effect of corporate information disclosure on ESG scoring.

Emerging Markets: Finding opportunity in uncertainty

Published by: Artisan Partners, Barings, BMO Global Asset Management

A panel of emerging market experts that includes Maria Negrete-Gruson, managing director and portfolio manager at Artisan Partners; Ricardo Adrogué, head of emerging markets debt at Barings; and Claire Franklin, portfolio manager at BMO Global Asset Management discuss the macro-environment, share company and country specifics, and offer insights on where to look past the headlines.

2019 Global Market Outlook: Not Over Until It’s Over

Published by: State Street Global Advisors

While we head into the year favoring the US, investors should assume a more defensive posture as late-cycle risks mount and be prepared to reposition to other regions as opportunities shift.

Increasing Financial Security With Workplace Emergency Savings

Published by: Prudential Retirement

As Americans struggle to balance their long- and short- term savings needs, employers may help by supplementing their retirement savings plans with an emergency savings feature.

Can Uncle Sam Protect You From Higher Interest Rates?

Published by: WisdomTree

As the Fed raises rates, the rate hike is reflected in the weekly 3-month Treasury Bill auction, not only offering investors a rate hedge for their portfolios but also providing the opportunity for higher yield enhancement as a result of the Fed’s tightening moves, with essentially no duration risk.

How To Find Value In Growth Stocks And Why That’s Important

Published by: State Street Global Advisors

As U.S. stocks flirt with record highs, the well-documented underperformance of value stocks accelerated. But underneath that underperformance lies an interesting trend that could give investors encouragement, even as some prepare for a market correction.

AsiaNow—Understanding the Rise of Innovation in Asia

Published by: Matthews Asia

The Asia region is riding a wave of homegrown innovation with long-term investment implications. Matthews Asia examines the rise of Asia’s own pioneering—not copycat—brands, intellectual property and market structures. Themes include advances in biotech, AI, banking, electric vehicles and social media.

Bond Avengers: QE Infinity War

Published by: BMO Global Asset Management

What does the Marvel movie franchise have in common with the bond market? And what could reading old comics tell us about the market impact of an inverted yield curve, China's impact on Treasuries or trillion dollar deficits?

Capital Market Assumptions: Methodology Update

Published by: Invesco

Invesco's Capital Market Assumptions are designed to direct the construction of multi-asset portfolios and keep investors informed about the markets. Invesco’s Global Solutions team provides forecasted returns for equities, fixed income and alternatives over a 10-year and five-year time horizon.

Direct Loan Origination: A Superior Alternative in Lower Middle Market Credit

Published by: PennantPark

The most common question investors ask us today is whether credit investments are producing attractive risk adjusted returns at this stage of the cycle. In this paper, we discuss why the best opportunities for yield today likely exist in directly originated private credit opportunities in the lower middle market.

Global Emerging Market Equities: Keeping It in the Family

Published by: Janus Henderson Investors

Glen Finegan, Head of Global Emerging Market Equities, believes that family ties make for a formidable force in both business and investing, and discusses how it is an important consideration in uncovering attractive, long-term investment opportunities within global emerging markets.

Integrating ESG In Portfolio Construction

Published by: QMA

QMA proposes a quant approach to integrating ESG in portfolios capable of classifying companies even if they don't disclose sufficient ESG data - while delivering comparable levels of excess returns to non-ESG portfolios.

Introducing the S&P Risk Parity Indices

Published by: S&P Dow Jones Indices

Risk parity strategies embody diversification—across time and asset classes. However, because there are so many ways to implement these strategies, it can be difficult to define an appropriate benchmark. Discover one transparent, investable solution.

Investing in today’s Commercial Real Estate market: It’s all about that basis

Published by: Schroders

Today, the US Commercial Real Estate (CRE) market is characterized as a market with high property valuations. With this challenge in mind, we believe there are attractive opportunities to lend in areas of the US CRE market, where capital provision is inefficient.

Making an Impact Through Active Equity Ownership

Published by: ClearBridge Investments

Public equities, by virtue of their global scale, make powerful impacts all over the world. At ClearBridge, we amplify this impact by being intentional active investors through capital allocation and direct company engagement, driving positive change while contributing to financial returns.

Tapping a Misunderstood Alpha Source - Effective Corporate Bond Portfolio Construction

Published by: Aviva Investors

Learn how bond portfolio construction can help uncover alpha sources.

The Fed’s Swap Lines During the Crisis: Lender of Last Resort on a Global Scale

Published by: PGIM Fixed Income

A decade after the worst of the Global Financial Crisis (GFC), Nathan Sheets, PhD, former director of the Division of International Finance for the Federal Reserve Board, looks back at the instability of the global financial system and details the role of the Federal Reserve as the international lender of last resort.

To spend or not to spend?

Published by: BlackRock

20 years into retirement most retirees have spent just 20% of their savings. Our latest research explores the behavioral biases that shaped this unexpected finding – and why future retirees may be faced with very different choices.

Why Health Care Stocks May Hold Opportunities for Equity Investors

Published by: State Street Global Advisors

After falling behind technology in earnings growth since December 2016, health care has seen improvements in all segments in Q2 2018.

A Goldilocks Economic Backdrop Demands Caution, Not Complacency, From Bond Investors

Published by: Manulife Asset Management, PFM Asset Management, Segal Marco Advisors

In this round table, Thomas C. Goggins, senior managing director and senior portfolio manager on the global multisector fixed-income team at Manulife Asset Management, Marty Margolis, chief investment officer at PFM Asset Management LLC, and Don Sheridan, a director on the fixed-income research team at Segal Marco Advisors, discuss the trends shaping fixed-income markets, including inflation and the flattening yield curve, opportunities around the globe and risks that investors need to keep an eye on.

Retirement Income Comes into Focus for Plan Sponsors

Published by: Aon, Franklin Templeton Investments, JPMorgan Asset Management

In this round table discussion, Rob Reiskytl, partner, actuarial consultant at Aon, Drew Carrington, senior vice president, head of institutional DC at Franklin Templeton Investments, and Anne Lester, portfolio manager and head of retirement solutions at JPMorgan Asset Management, discuss the opportunities and challenges around retirement income for plan sponsors, how automation may fall short for near-retirees and how to think about fiduciary risks when it comes to retirement income.

Is value ready to turn?

Published by: State Street Global Advisors

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.

Hedge funds: is the diversification worth the cost?

Published by: Schroders

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?

The End of Sovereignty?

Published by: PGIM

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.

Shifting DC Times

Published by: Invesco

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.

Mapping China’s Rise to Asset Class Status

Published by: KraneShares

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.

Don’t let the FANGs bite you

Published by: State Street Global Advisors

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.

Targeting International Growth with a Broad Mandate

Published by: ClearBridge Investments

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.

Take Bold Steps to Fund and Meaningfully Reduce Liabilities: What CFOs Need to Know

Published by: Prudential Retirement

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.

Asset Stewardship Report 2017 Year End

Published by: State Street Global Advisors

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.

Global vision, local benefits: A framework for multi-national companies

Published by: BlackRock

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.

How Advanced Driver-Assistance Systems, Ridesharing, and Electric Vehicles Are Driving Change Across the Automotive Industry

Published by: William Blair

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.

Performance dynamics driving fiduciaries to multimanager target-date funds

Published by: John Hancock Investments

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.

Tapping China’s Emerging Potential

Published by: WisdomTree

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.

The Case For Global Bonds

Published by: PGIM Fixed Income

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.

The case for microcap investing

Published by: BMO Global Asset Management

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.

The Merits and Methods of Multi-Factor Investing

Published by: S&P Dow Jones Indices

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.

The Relevance of Gold as a Strategic Asset

Published by: World Gold Council

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.

Tight Spreads Shouldn’t Diminish High Yield’s Appeal

Published by: Artisan Partners

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.

Indexing the World

Published by: FTSE Russell

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

Pension Derisking Comes of Age

Published by: Capital Group, Fidelity Management & Research Co, Western Asset Management Co.

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.

Benefits and Beyond: How Employers Think About Financial Wellness

Published by: Prudential

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.

Archived White Papers by Topic

By downloading a white paper, you are agreeing to have your contact information shared with the content sponsor, who may then contact you.

All white papers posted were created by the listed authors who are solely responsible for the research, finding and all materials contained therein. Pensions & Investments has not verified or edited the materials (other than for length and style) and does not necessarily agree or disagree with the analysis and positions expressed by the authors. Reference to any company, product or service does not imply recommendation or sponsorship by Pensions & Investments.

For more information on submitting a white paper, please contact Richard Scanlon at rscanlon@pionline.com or 212-210-0157.