Portfolio Management
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Opportunities in China will outweigh concernsChina's economy is now the world's second largest, and the greater China equity market — comprising mainland China, Taiwan, Hong Kong and Macau, at approximately $6.1 trillion in market capitalization — already has surpassed Japan's as the world's second biggest.
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Premature fears of a bond bubbleThere has been much talk of a bond bubble during the past few years. In fact, in August 2010, an article by Jeremy Siegel, the noted finance professor at the University of Pennsylvania's Wharton School, was titled “The Great American Bond Bubble.” Paradoxically, the yield on the 10-year U.S.
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Passive investing in stocks based on market capPassively investing the entire stock portfolio by market capitalization results in a “momentum” approach and decreases opportunities for rebalancing.
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In LDI, global bonds can make big difference
Research shows that LDI investors can reap significant benefits from going global.
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Rethinking emerging market equity exposureStagnant growth and low interest rates in developed markets are prompting institutional investors to re-examine their emerging market exposures.
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Doing the math on low-volatility strategiesA low-volatility, long-only equity strategy seeks long-term returns that equal or exceed the market with reduced absolute risk. Attractive? Let's take a look at some of the potential benefits and consequences of investing in low-volatility strategies.
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The case for illiquid credit alternatives - Pensions & InvestmentsTraditional fixed-income investors today face a dilemma. The extraordinary interventions of central banks worldwide, in combination with a weak U.S. recovery and uncertain global economic conditions, have given rise to an environment of stunningly low interest rates.
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Are fallen angels the better part of high yield?From a bond investor's point of view, does the meaning of “speculative grade” remain the same no matter how the bonds got there?
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The scarcity of income: A 'Hobson's choice'Upending the asset classes of the world in search of income has led to a dilemma. Should one pursue rock-bottom-yielding, “risk free” sovereign debt? Or have developed market monetary policies left little alternative but for investors to seek higher income-paying “riskier” assets?
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Institution Driven Investing: A new model for pension funds, endowmentsIn a world marked by so many unknowns and potential pitfalls, institutional and pension fund managers need a new way to look at investing — one that starts with the characteristics of the institution and then works up from there.
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Developing glidepaths for achieving funding goals
In search of a smoother, more direct route to their funding goals, many plan sponsors are exploring glidepath approaches to managing pension investments.
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With dividends, it's more about growth than yieldIn spite of the more positive tone to the equity markets during the past few months, institutional plan sponsors and their advisers increasingly realize they face real structural impediments to the average 7% to 9% return assumptions built into their asset allocation models.
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Defining transparency in transition managementTransparency is a central topic of the transition management industry. As such, transition providers go to great lengths to prove and differentiate their transparency in comparison to other providers.
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Is fundamental stock selection still credible in a risk-on/risk-off world?While the recent rally in equity indexes is encouraging for institutional investors, the risk-on/risk-off behavior that characterized market performance during 2011 is unlikely to be quickly forgotten.
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Portfolio managers must anticipate moves like tennis prosCan anticipatory cues help investors? We believe the answer is yes if you know how to watch for them and then use the cues to guide portfolio construction.
