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Tail hedging can balance risk: PIMCO
Executive vice-president and head of client analytics at PIMCO, Sebastien Page, who is tasked with bringing the intellectual and analytical capital of the manager to clients in a new consultant-type role, says tail-risk hedging is an effective way to reduce volatility and enhance returns.
Beyond divestment
While divestment is a useful tool to communicate concerns of climate risk to stakeholders, it is not an optimal investment strategy, in part because it ignores short-term benchmark risk. A research paper by MSCI provides a framework for evaluating ways to reduce two dimensions of carbon exposure – current carbon emissions and potential future emissions
ESG seeks meaningful relationship with performance
Research on environmental, social and corporate governance (ESG) and investments has advanced in rigour, coverage and volume, but data quality, and the problems of reverse causality are still concerns for academics looking for a meaningful relationship between ESG factors and investment performance.
Ventures on the risk spectrum
Hershel Harper received an early education in finance when he used to read Business Week in High School. The 43-year old now at the helm of the $27-billion South Carolina Retirement Systems, investing on behalf of South Carolina’s 350,000 public sector workers, says he knew back then he wanted to manage money: “I really am
Are hedge fund investors getting what they paid for?
Alternative hedge fund beta allows investors to access the returns generated by hedge funds without the pressures of finding alpha, says Fama family professor of finance at the University of Chicago Booth School of Business, Tobias Moskowitz. Moskowitz says there are three components to hedge fund returns: unique alpha, traditional market beta, and “something else”,
Ahoy! Opportunities in dock for shipping investors
Investing in ‘distressed shipping’ is a variation of the current capital scarcity theme, Mercer says. (click on the photo for more…)
Eijffinger’s decade of financial repression
Financial repression will define the economic landscape for at least another decade, according to professor of financial economics at Tilburg University, Sylvester Eijffinger, which has serious implications for institutional investors. Eijffinger, who also is also a visiting professor at Harvard, sits on the monetary experts panel of the European Union and is an adviser to
Maryland’s record year prompts actuarial rate reduction
Maryland State Retirement and Pension System is the latest fund to record an historical performance for the 2021 financial year, returning a best ever 26.7 per cent. Again public and private equities were the star performers with an exceptional 51.85 per cent return in private equity and 44.54 per cent in public equities But in recognition there might be a bill to pay for those higher returns in the future the fund has lowered its actuarial rate of return.
Tokenisation is the greatest disruptor ahead
Blockchain technology will open up illiquid assets, like real estate, to new investors in what could be the greatest disruption ahead. Franklin Templeton’s Jenny Johnson explains how the asset manager is ensuring it taps the new opportunity.
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