The concept of matching asset allocation to an individual’s risk preferences has been around for decades. As the theory developed, the concept of lifecycle investing – varying asset allocation according to an individual’s age – was born. In this article,
The EBA has received several mandates to assess how to include Environmental, Social and Governance (ESG) risks into the three pillars of the banking prudential framework. This report assesses their potential inclusion in Pillar 2 by providing common definitions of
Companies are faced with a difficult decision after a cyberattack has occurred. Paying the ransom has become more expensive over time and it does not guarantee that the cyber criminals will release their grip on company systems, nor does it
Diversification – exposure to multiple risky assets to help reduce portfolio risk – can enable a portfolio to thrive in many different market environments. However, after an exceptional 2020, events so far in 2021 – with US equities outperforming other
Investment flexibility may enhance risk-adjusted returns. With the economy continuing to recover from the global pandemic, we believe investors could benefit from an allocation to below investment-grade credit. Equity valuations appear somewhat stretched after a rally that began more than
The rapid and ongoing adoption of ESG across global industries has seen sustainable investments soar. However, fixed income markets and money markets have been slower to adopt ESG. But why is this and how long will it take for these
Positioning your portfolio for the risks and opportunities ahead. Investors have rarely experienced such an extraordinary period. Just as the 2020 shutdown of much of the global economy by the coronavirus pandemic was unprecedented, the recovery this year is likely to
Downside risk management is crucial. Volatility and low yields are likely to persist over the next few years as the global economy recovers from the shock of the coronavirus. Navigating this environment will be difficult, particularly as returns from equities
Valuations of risk assets have marked a pause in the face of a number of headwinds. In our view, valuations remain underpinned by ample central bank liquidity and the prospect, in the US, of further fiscal stimulus.
One of the most tangible effects of climate change is already well underway – the surge in extreme weather. If there was a VIX for weather, it would be near all-time highs – and trending higher still. Exhibit 2 illustrates this greater weather volatility in …
February saw US fiscal authorities take the baton from the Federal Reserve and surprise on the upside in terms of proposed spending programmes in the months ahead. This served as a tailwind for global equities and a headwind for …
This report contains extracts from the full hardcopy Credit Suisse Global Investment Returns Yearbook. In the Yearbook, renowned financial historians Professor Elroy Dimson, Professor Paul Marsh and Dr. Mike Staunton assess the returns and risks from investing in equities, bonds, cash, currencies and factors in 23 countries and in five different composite indexes since 1900. This year, the database is broadened to include 90 …
While a new year may be underway, at least one thing remains the same: low bond yields. We believe that the challenges and risks this environment presents may not be fully understood by investors. For that reason, we have identified three questions that we believe investors should consider: focusing on the diversification power …
Since the U.S. elections, asset prices have risen steadily higher. Can the risk rally continue? I believe it can as it is underpinned by three powerful drivers. However, there are also three looming risks that could undermine it.
In the first of the series Vincent McEntegart gives his thoughts on the broad market expectations for 2021 and Debbie King presents a short case study on how we use bank equity and bank credit in our income strategies to deliver income plus a strong risk-adjusted return.
A look at the personal investing behavior of Vanguard’s 5 million retail households Vanguard investors have a long-term risk outlook The typical Vanguard household holds a long-term, risk-taking portfolio that's both diversified and balanced. The average portfolio consists of 63%
Outlook If, like a modern-day Rip Van Winkle, you had magically slept through 2020 and then looked at the year-to-date credit returns, you might have thought: “Quite a boring year, then”. Dramatic selloffs have been largely retraced by equally dramatic
Investment Insights Key takeaways Global corporate bonds have recovered strongly since the peak of the sell-off experienced in March. With credit spreads having tightened considerably since then, I believe the rally was justified for technical reasons due to unprecedented levels
Investment Insights The US election results and the announcement of a potential COVID-19 vaccine from Pfizer have been pivotal events in markets, initially providing a substantial boost to risk assets. Mixed economic data and a rapidly rising rate of coronavirus
Investment Insights As emerging markets continue their rise towards becoming one of the key drivers of global growth, improved capital and information flow have brought to the fore alternative ways of investing in the asset class. In this paper, we
#45 November is filled with webinars. This week, you’ve got a lot to choose from. On Wednesday, Capital Group hosts a webinar “Are disruptors the next generation of defensive stocks?” and T. Rowe Price hosts a webinar “US Election 2020
October 30, 2020
Investment Letter Succes vereist nieuw recept op basis van bestaande ingrediënten Het Nieuwe Pensioencontract (NPC) moet een transparanter en persoonlijker pensioen opleveren dat beter aansluit bij de ontwikkelingen op de arbeidsmarkt. Daarnaast moet het perspectief op toekomstige verhogingen van de
Weekly Fixed Income Commentary U.S. Treasury rates closed higher last week, led by longer maturities. A constructive market tone lifted rates and supported risk assets. Prospects for additional fiscal stimulus prior to the U.S. election dimmed, but rates rose nonetheless
An EDHEC-Risk Institute Working Paper This paper employs a robust portfolio sorting procedure to factor size characteristics into returns. The US size anomaly boils then down to a pure seasonal effect, fully supporting the “tax-loss-selling” hypothesis. We build a long-short
Webinar – Climate Risk: Preparing Your Portfolio for the Storm As climate change continues to impact the wider economy and drives further regulation, investors urgently need to incorporate the climate risks and opportunities across all asset classes into their portfolio.
Investment Perspective The relentless run in risk assets over the last five months finally faded a bit in early September, as the S&P 500 fell nearly 8% and the tech-heavy NASDAQ fell 11%. This year’s returns have been heavily influenced
Weekly commentary The broad macro backdrop has been improving, risk assets have rallied a long way, and increasing market volatility points to risks that investors will need to navigate as the U.S. presidential election draws closer. All this leaves us …
This paper presents a simple holistic approach to build climate risk-resilient investment portfolios based on the three key objectives of the Paris Agreement: climate change mitigation, climate change adaptation, alignment of financial flows with a low-carbon, climate resilient pathway. We
Multi-asset | September 2020 Most asset market returns can be distilled down to two basic elements: movements in cash flows and discount rates. In the past month or so, for risky assets such as equities, each has moved in a
This article studies the impact of carbon risk on stock pricing. To address this, we consider the seminal approach of Görgen et al. (2019), who proposed estimating the carbon financial risk of equities by their carbon beta.
Weekly Investment Commentary U.S. equities rallied again last week, with the S&P 500 Index climbing 2.5% as it approached a new all-time high.1 Economic data continued to come in ahead of expectations and corporate earnings results have not been quite
Sovereign wealth funds are often referred to as “rainy-day funds”, pools of cash that their government owners can draw upon in times of economic need. It is hard to imagine a rainier day or a greater …
Capital Market Line Quarterly Five-Year Forecast of Relative Risk and Return Across Asset Classes While the spiking number of Covid-19 cases in the US West and South are cause for concern, built-up consumer demand and nascent recoveries in autos, housing
The sharp market fall and speedy recovery during the eventful first half of 2020 has kept tail risk hedging topical: investors have both fresh memories of a painful loss and renewed fears of a repeat. In this paper we summarize
We believe there is a striking disconnect between market pricing and the real economy, especially with regard to expected company earnings. In the past three months, risk assets have pulled back from the brink of collapse, as policy makers hosed
Qontigo Applied Research Q2 2020 Insight Report In times of crisis, the focus is always on the future— hence our title for this quarter’s Insight Report. As researchers, we analyze the past in search of insights to guide us forward.
Carmignac's Note Investors are used to dealing with uncertainty – the very essence of financial markets – as they seek to anticipate what is necessarily an elusive future. However, these past six months have driven uncertainty into entirely uncharted territory,
#28 A variety of webinars were hosted this past week and next week a few interesting are coming up. Therefore, before we tell you the best read research of week 28, we will highlight two webinars. Last Thursday, Eurizon AM
Foreword We are pleased to present the results of the 2020 European Risk Manager Survey. The survey has taken place every other year since 2002 and represents the widest available picture of views of professional risk managers across Europe. The
Where are the opportunities in Asset Backed Securities? …that can meet ESG risk and positive impact objectives July 2020 – Alternative Fixed Income and R.I. series – Webinar 1 The drawdown in the markets provoked by Covid-19 reached its lowest
Risk Insights Series We are in a new era of extreme volatility that is leaving investors searching for new ways to achieve the same portfolio objectives. In an environment marked by …
Webinar – Green Bonds: What happens to green when markets turn mean? The recent bond market sell-off caused by the Covid19 pandemic revealed that Green Bonds held up remarkably well with just half of the losses versus the broader corporate
#23 Asset Allocation might be the most used tag on OpinioPro and this past week is no different. Furthermore, of course the calendar is a well used page as well. Don’t forget to take a look and spot an interesting
Webinar – Climate Change Investing in 2020 Divesting, Decarbonizing, De-risking, and Aligning with 1.5C A complimentary webinar for investment professionals Investors recognize that climate change is one of the most pressing threats to society, and that alignment offers potential opportunities
Webinar – Resiliency & Risks for Global Financial Systems COVID-recession consequences, fiscal and monetary responses, and implications for the US economy and capital markets will be discussed by Peter Fisher, Clinical Professor at Dartmouth’s Tuck School of Business. Peter formerly
Webinar – Quarterly Multi-Asset Risk Review Differing views on the effectiveness of the fiscal and monetary responses to the COVID-19 crisis have led to an ongoing uncoupling of stock and government-bond returns. While share prices started to recover in anticipation
Webinar – ESG & Credit: How to Mitigate Both Financial And Climate Risks Institutional investors are increasingly looking at making their significant fixed income allocations part of their sustainable investing strategy. But whilst the recent market turmoil highlights the need
