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.
ESG culture crucial to integration says innovating funds
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.
There’s no escaping the fiduciary duty of creating a better world
ESG, and more recently climate change, are now largely accepted in the investment process, and more importantly have passed the fiduciary duty test.
CalPERS steps up ESG drive
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.
Six US public funds top the 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.
Managing liquidity and rebalancing constraints
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.
