This new research, to be published in the FAJ, shows that the rise in popularity in indexing, through passive mutual funds and ETFs, contributes to higher systematic market risk. It shows, consistent with the accelerating growth of passive investing, that equity betas have not only risen but converged in recent years.
Some of responsible investing’s most sophisticated adherents have moved from token aspirations to attempting to imbed environmental, social, governance integration into all their investment decisions. Top1000funds.com talked to Dutch asset manager PGGM and Danish fund ATP, which are both widely regarded as ESG leaders, about how they have integrated ESG into their investment processes.
ESG, and more recently climate change, are now largely accepted in the investment process, and more importantly have passed the fiduciary duty test.
After an extensive review and high-level workshop earlier this month the CalPERS’ investment team will seek board approval in December for a total-fund plan to more fully integrate environmental, social and corporate governance principles into all the investment decisions it makes in each of its asset class.
A study examining funding policy, benefit design, and economic assumptions of six US public funds, which managed to endure the economic turmoil, shows some consistent features that could be emulated for fund persistence.
This extension of previous research by Morgan Stanley’s Martin Leibowitz and Anthony Bova provides an analysis of the relationships between rebalancing liquidity, portfolio flows, and diversification into illiquid assets.
Top1000funds.com is the market leading news and analysis site for the world’s largest institutional investors. It focuses on leading the global investment industry to continuous improvement through case studies of best practice in governance and decision making, portfolio construction and efficient portfolio management, fees and costs, and sustainable investing.
The publication pushes the industry to question whether status quo processes and behaviours to tackle risks and opportunities will be sufficient in the future, and actively campaigns for diversity, sustainability, transparency, innovation and better alignment of fees in the investment industry.
Top1000funds.com is read by investment professionals in more than 40 countries.
Research