December 2014

Opinion

Long-termism, the problems with capitalism and other holiday reading

The holiday season is a good time to catch up on the reading you may have put off throughout the year. To make it easy for you here is a choice of articles that speak to some of the key themes for investors – long-termism, economic growth, climate risk and capitalism. Long-termism is one of […]

Amanda WhiteDecember 18, 2014

Uncategorised posts

2014: the year in words

In 2014 we have delivered to our readers more than 200 in-depth investor profiles, analytical and research-driven stories on the global institutional investment universe. The most popular investment stories have been about private equity, ESG integration and how to find the ever-elusive alpha. But asset owners have also liked stories on how to improve their […]

Amanda WhiteDecember 17, 2014

Research

The real factor exposures in “smart beta” indexes

Investors relying on nomenclature of smart beta indexes as an accurate reflection of their factor exposures should take a closer look. New research, using a “factor efficiency ratio”, finds that most smart beta indexes are unable to provide desired factor exposures without taking on substantial unintended exposures. Importantly the paper finds that some smart beta […]

Amanda WhiteDecember 12, 2014

Uncategorised posts

Traditional risk measures flawed

The traditional method of using aggregated monthly data to measure long run risk is flawed and inaccurate, according to important new research by State Street. Co-authors David Turkington, Will Kinlaw and Mark Kritzman have found that there is a huge divergence in risk and return over long periods, which is not visible when using measures […]

Amanda WhiteDecember 10, 2014

Uncategorised posts

Divestment of fossil fuels inappropriate for Norway’s SWF: expert group

Automatic exclusion of coal or petroleum producers is not an effective way for the Norwegian Sovereign Wealth Fund of addressing climate issues, according the report of the expert group on investments in coal and petroleum to the Norwegian Ministry of Finance. “We believe the use of the Fund as a climate policy instrument beyond what […]

Amanda WhiteDecember 5, 2014

Uncategorised posts

Rethinking investment performance attribution

As asset owners move away from silo-based investment decision making, their performance attribution systems also need to evolve. The Alberta Investment Management Corporation AimCo, the C$70 billion arm’s length investment manager for public sector assets in Alberta, Canada, has implemented a new performance attribution system based on how managers actually make their investment decisions. […]

Amanda WhiteDecember 3, 2014