The goal of the research was to drill deeply into the evolving forces in the industry and present a plausible picture of its future landscape, through both near-term and longer-term trends.
Our time horizon looked out towards 2020. We, however, acknowledge the considerable difficulties with longer-range forecasting given the increasing pace of change.
There is one word that captures the flavour of the next few years in the financial industry – complexity.
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.
Incorporating impact into a risk/return framework creates additional dimensionality and significantly increasing the complexity of the portfolio design challenge. David Bell from The Conexus Institute explores the technical challenge of navigating the 3-D investment framework.
Stephen Kotkin, the John P Birkelund Professor in History and International Affairs, Princeton University, cites the many risks of investing in China.
A new paper outlines how investors can align their portfolio to science-based carbon budgets consistent with 1.5 degrees of warming.
The traditional 60/40 portfolio allocation is no longer enough. The opportunity for alpha is not gone, but the low-hanging fruit has long been harvested, and the path toward higher absolute returns has gotten far more nuanced according to a new report from the Chartered Alternative Investment Analyst (CAIA)
Asset owners increasingly encourage their asset managers to improve diversity, but both owners and managers report the need to grow diverse talent coming into the investment industry, according to recent research.
Joe Biden will win the US election according to a technique used in finance to predict factor returns and the correlation of stock and bond returns. The technique, outlined in an MIT working paper, correctly predicted the past five elections, including 2016.
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The publication pushes the industry to question whether status quo processes and behaviours to tackle risks and opportunities will be sufficient in the future, and actively campaigns for diversity, sustainability, transparency, innovation and better alignment of fees in the investment industry.
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