Investors need to be aware that rare events with an extreme impact that, afterwards, we think we could have predicted – in short, black swans – happen in the markets. Those who are trying to measure risk in the financial markets need to carefully distinguish risk, with its probabilities, from uncertainty, which cannot be measured. We have become increasingly vulnerable to black swans because our financial
economy has come to play an ever-larger role in our productive economy.
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
This research examines the effect of tail risk, or extreme risk, on pension funds, concluding that all extreme scenarios have an immediate negative impact that can significantly jeopardise the smooth functioning of a pension scheme, probably as much as the other non-extreme risks. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Investment managers are more bullish about markets with US large cap growth the flavour of the moment, according to the latest Russell Investment Manager Outlook, which among other findings shows the percentage of surveyed managers rating the market as fairly valued at the highest level since March 2007. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Investors can learn a thing or two from the human foibles displayed by Tiger Woods, according to new research by academics at the Wharton School of the University of Pennsylvania. The research refers, however, to his tendency to be too risk-averse when ahead for a putt, rather than his recently exposed sexual escapades. Woods and
A number of new research articles have deunked two universally held beliefs in the investment industry, that shares are a good long-term bet and that economic growth is good for equities. Dr Arjuna Sittampalam, Research Associate with the EDHEC-Risk Institute and editor, Investment Management Review, examines the research. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Pension funds in Australia allocate a higher proportion of assets to shares than pension funds in any other country, according to a survey which looked at the asset allocation of pension funds in selected OECD countries. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
According to academic research analysed by the Mercer Responsible Investment business unit in its latest report, there is a growing engagement by the investment community in responsible investment, just as the link between environmental, social and governance issues and performance proves to be a positive relationship. Amanda White spoke with Helga Birgden, head of responsible
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