Locking up capital has pros and cons
In theory, closed-end funds should outperform over long horizons – they can avoid forced sales. But in practice, lack of monitoring and alignment can lead to agency costs and underperformance.
Risk 2.0 is better – let’s count the ways
In the final part of a column series exploring a new risk management framework, 'risk 2.0', WTW global head of portfolio strategy Jeff Chee outlines what investment professionals of the future need to understand about the commonalities of risk events and the resulting benefits of an interconnected risk mindset.
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Growth dynamics define sustainability
Will long-term GDP growth behave like bacteria in a petri dish or rabbits on a deserted island? The answer has implications for investors attempting to construct sustainable portfolios.
Beware the hidden dangers of exotic ETFs
When an exchange-traded fund isn’t closely matched by its underlying components, liquidity can dry up, credit risks can emerge, and other factors can eat away at expected returns.
Passive managers, active ownership
Passive managers have greatly increased their market share. It’s more important than ever that they show best practice in active ownership by engaging on ESG issues and focusing on the long term.
The ‘Divest Invest’ premium
A sample Divest Invest portfolio outperformed under climate-change modelling, when compared with a more traditional allocation exposed to fossil fuels and lacking tilts towards climate solutions.
We need to be better than ‘optimal’
An over-reliance on mean-variance optimisation has led to portfolios that fail to take into account the radical complexity of the real world and embrace ‘pretentious and unhelpful symbols’.
Opinion