In "Building Core Strength to Meet Demands of Markets" stelt T. Rowe Price het belang vast van het balanceren van zowel waarde- als groeistijlen in beleggingsportefeuilles. Deze aanpak vermindert portefeuillerisico en elimineert de noodzaak voor beleggers om op één specifieke
After so many years of rock bottom rates, fixed income investing is back in vogue. It took a pandemic, extraordinary fiscal policies, and of course inflation – but income is back. Depending on where you look central banks are accused
For the reader in a hurry: we have not been able to find systematic alpha in ESG data for sovereigns so far. However, an ESG approach to sovereign debt selection can be additive in at least three ways: (1) a
Past enhanced index strategies fell out-of-favor with institutional investors because they sought to generate excess returns from common and crowded risk factors such as credit, value, earnings growth and revision, price momentum and quality. The novel enhanced index approach that
Corporate debt is the fastest‑growing area of hard currency emerging markets (EM) debt, with almost USD 2.5 trillion outstanding and new issuance averaging 15% of debt outstanding per year since 2011. The asset class generated strong risk‑adjusted returns over the five years ended December 31, 2020, due to the …
In these extraordinary times the investment potential in Chinese equities remains extraordinary. This might sound debatable given current global uncertainties, but at BNP Paribas Asset Management, we believe the long-term growth prospects of the China’s vast, diverse equity markets and a steady move towards sustainable, quality growth …
The Future in Focus Pivoting from uncertainty to opportunity. The past 12 months have tested the world in ways that were hard to imagine last January. What started as a solid year for equities was turned upside down as the
T. Rowe Price Insights on U.S. Equities How the rules of investing in the large‑cap growth space have changed Amid the wider performance of the U.S. equity market, one particularly astonishing statistic is that the top 10 stocks in the
#39 September is a busy month for webinar-watchers! A lot of subjects are discussed, for example “Modern Monetary Theory” or “Small Caps“. A lot of research was posted last week and in this blogpost we will highlight a few we
Gross Domestic Product (GDP) has long been the go-to metric for assessing countries' development trajectories. In turn, investors are largely judged …
The current challenging market environment suggests a greater need than ever for alternatives. Hedge funds, which target differentiated, positive absolute returns, provide clear potential benefits. However, institutional investors have …
The Fleeting Alpha Scorecard is a semiannual report showing how well outperforming mutual funds from one three-year period continue to outperform thereafter. It combines …
The lasting changes caused by the pandemic The surge in equity market volatility during the current COVID-19 crisis is indicative of the overwhelming uncertainty and fear investors are feeling. This environment creates tremendous opportunities, but diligence and adherence to a
We believe that price is one of the most predictive determinants of future alpha and try to identify companies trading at cheap prices relative to their sales, earnings, cash flows, and dividends. While there are countless value strategies, we take
In the fifth and final part of our series on how human behavior can affect investment decisions, we’ll examine the performance review session, including techniques to promote deliberate process improvement as well as make the session more engaging for clients.
Earnings seasons provide valuable insights on alpha. They track inflections in business dynamics, which are key catalysts for stock selection. They also provide a barometer on investors’ readings on and interest for companies’ fundamental changes, with limited noise from other
Style factors have been shown to historically deliver superior risk-adjusted returns than passive capitalization weighted indexes and more persistent performance than traditional active management, making them a compelling alternative for investors. The benefits of style factors come with the cost
If nding alpha for your portfolio continues to be a mystery, you may be looking in the wrong place. As evidenced by their high fees, stock pickers still are coveted in investing. Conventional wisdom attributes much of alpha to the
Point of View As evidenced by their high fees, stock pickers still are coveted in investing. Conventional wisdom attributes much of alpha to the skill of investment managers finding the best businesses at the right price. However, the mysteries of
Style factors have been shown to historically deliver superior risk-adjusted returns than passive capitalization weighted indexes and more persistent performance than traditional active management, making them a compelling alternative for investors. The benefits of style factors come with the cost
Historically, style factors have been shown to deliver superior risk-adjusted returns to passive capitalization weighted indexes and more persistent performance than traditional active management, making them a compelling alternative for investors. Although the efficacy of style factors conflicts with modern
Style factors have been shown to historically deliver superior risk-adjusted returns than passive capitalization weighted indexes and more persistent performance than traditional active management, making them a compelling alternative for investors. The benefits of style factors come with the cost
Juhani Linnainmaa cautions investors to be wary of alpha decay in newly discovered factors. Using fresh, pre-discovery data, his out-of-sample analysis shows about half of the many factors tested were not robust.
6 steps to a better portfolio After a disappointing year in 2018, active managers have bounced back to a degree, notably in fixed income.
The new measure of relationship alpha (a) can result in a more profitable wealth management firm with higher client retention and greater success in growing assets. CFA Institute publishes a rich trove of material on wealth management and professional standards.
I have a dystopic vision of robots and computers making investment decisions and trading stocks, bonds, and currencies, while hordes of ragged former portfolio managers, analysts, and brokers roam the decrepit streets of the City and Wall Street shouting about
Despite recent headwinds related to country-specific economies and trade wars, emerging markets continue to be a source of alpha for investors. The success of emerging markets in the past has been based on themes. The major theme for growth going
Interest in ESG investing has grown incontestably in recent years. This study covers the analysis of the risk-return profile of ESG as a selection strategy on global developed markets, and the integration effects of ESG in an index-linked management process.
As more and more observers are recognizing (and with increasing alarm), a major investment problem is coming our way: widespread retirement insecurity. It is one of the consequences of the major shift in corporate retirement plans from defined-benefit (DB) to
Despite some improvements, Q3 results reinforce the view that active managers have found their ability to generate alpha persistently constrained by widespread economic and political risk.
Active managers found their ability to generate alpha constrained by economic and political uncertainty in H1, with only 33% of them outperforming – down from 44% in 2017. Read on for more on what happened, what happens next and how
Survivorship bias is the logical error of focusing only on the things that survived a process while ignoring the things that did not. Famous examples abound across fields ranging from the science of falling cats (Whitney and Mehlhaff, 1987), to
Global Outlook June 2018 This edition of Global Outlook encompasses themes including disruptions to both markets and market places from Artificial Intelligence and ecommerce. We also examine the impact of positive regulatory outcomes, ageing demographics and cyclical turning points, as
Hoe huidige marktomstandigheden beleggers dwingen tot innovatie In de afgelopen vijf jaar heeft menig institutionele belegger afscheid genomen van diens beleggingen in traditionele alfastrategieën, zoals hedge funds.2,3 Hoge kosten en complexiteit werden door veel partijen als aanleiding genoemd voor deze
The topical noise around investment selection for institutional managers is all-encompassing these days. Some issues dominating the airwaves include factor investing and smart beta products (and the rise of passive investments more generally), the compressed return expectations across asset classes,
Advisor Symposium Presentation
Investors and their advisors must be alert to managing both pre-tax and after-tax alpha in order for investors to realize the highest possible return from their taxable portfolios. Increasingly, the opportunities to accomplish both goals are within reach of investors
Investment insights Broadening array of outcomes for key macroeconomic variables, gradual removal of monetary policy support suggest higher volatility regime is likely to persist across asset classes We see the same drivers supporting and sustaining higher return dispersion within equity
In Brief Market and regulatory events are challenging corporate pension plans to find innovative ways to manage drawdown risk and improve the health of their plans. To achieve these goals, plan sponsors need to optimize the trade-off between funded status
Strategy Spotlight Global equities have returned an astounding 13% per year since the market trough in 2009. 1 But generating these levels of returns is likely to become far more challenging going forward, given elevated valuations and an aging bull
Top-down, bottom-up, value, growth, momentum, quality, size… the choice of factors for investors seeking alpha is seemingly endless. Each investment approach has its merits, although all are dependent on either the skill, or luck, of the fund manager(s) and/or whether
Shared Thinking DR IAN HESLOP, head of global equities, and JUSTIN WELLS, strategist in the global equities team, argue that it is possible to be too smart when it comes to beta, and that a dynamic alpha model should be
We examine the gross and net alphas of active and index U.S. equity mutual funds and exchange-traded funds, both dead and alive, over the past 12 years on a four-factor-adjusted basis in order to empirically test the zero-sum-game theory. We
