Treat patience as a finite resource
Funds in position to benefit from long-term investing must treat patience as a finite resource to be protected, otherwise they miss out on opportunities that come only with a long horizon.
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.
Funds in position to benefit from long-term investing must treat patience as a finite resource to be protected, otherwise they miss out on opportunities that come only with a long horizon.
Many active managers in Canada were able to exceed a passive benchmark return by 50-100 basis points, net of fees, for the decade ending December 31, 2016, Russell Investments research has found.
Embedding ESG factors into investment decision-making processes makes related risks more apparent, while strategies based on SDGs align portfolios more closely with long-term wealth creation.
Culture is hard to build and maintain, but if you start with good leadership and the right people, you can build the advantage of a long-term investing mindset into an organisation’s DNA.
There’s a debate raging about whether modern economies have banished high inflation to the history books. The short answer, Mercer argues, is it’s complicated. So, investors better have a plan.
In the GFC, many investors got burned as limited partners, by costly experiences and opaque strategies. To fix the damaged relationships, a focus on disclosure and aligned interests is essential.
Opinion