One of the key ways that institutional investors can promote a long-term orientation in the companies they invest, is by rejecting a company’s compensation plan if it puts too much emphasis on short-term results, says Bob Pozen, visiting senior lecturer at the MIT Sloan School of Management. Writing in the Financial Analysts Journal, he says … Read more
Two Robeco researchers have become the first to analyze the effect that factor premiums can have on corporate bond investing. The work by Patrick Houweling and Jeroen van Zundert aims to show that the factors used successfully in equity market investing can also work in the corporate bond market. Read more about this research study.
The common view is smart beta is used to side step expensive active equity managers or hedge fund managers whose processes are on the surface opaque, but on close investigation turn out to be largely beta like in approach. As investors have gained experience and familiarity they have also learnt about how it offers greater … Read more
The London Pension Fund Authority (LPFA) and the Lancashire County Pension Fund (LCPF) have agreed to a liability asset management partnership – known as the Lancashire and London Pensions Partnership (LLPP) – that allows for the pooling of assets and a reduction in investment costs. Each of the funds will retain their own strategic asset … Read more
There is a huge diversity in pension system design across the globe, reflecting historical, cultural and institutional diversity. There is much to be learned by each of the different systems, so in order to compare the benefits of various systems, two authors from APG in the Netherlands postulate a new classification of four role models … Read more
The growing interest in low-volatility equity products is of course increasing supply. It should come as no surprise that products with (virtually) the same description may be different. What to watch out for when selecting low-volatility products? Read the full article.
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