Professor of finance at the EDHEC Business School and member of the EDHEC Risk Institute, Abraham Lioui, looks at the spillover effect that counter-cyclical regulation affecting one part of the market, banning short-selling, has on the broad market. By examining the effect of the ban on short-selling in 2008 on market indices in the US and Europe the research shows a broad impact on the markets, which did not ease the downward pressure in financial markets.
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.
In this paper, Ashby Monk and Rajiv Sharma from the Global Projects Center at Stanford University, examine the balance of power among the various parties in the private assets investment food chain. They argue that fund managers have too much power, as do the consultants that act as gatekeepers to those managers. While the authors
Factor-investing has not yet won the right to be the endurable and dominating asset allocation method, according to new research.
A new study of active and indexed-based mutual funds shows the impact of different countries’ regulatory and financial market environments. The study finds that the average alpha generated by active management is higher in countries with more explicit indexing and lower in countries with more closet indexing. The evidence suggests that explicit indexing improves competition in the mutual fund
With so many asset owners looking towards long-term investing, it is considered for funds managers to ask how their business models are aligned with those client aims, or not. In this research paper, Geoff Warren, research director for the Centre for International Finance and Regulation looks at how investment management organisations might be built to
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
A research paper that concludes that the funds recommended to institutional investors by investment consultant do not add value, has won the Commonfund Prize, awarded for original research relevant to endowment and foundation asset management. The paper, by academics at Saïd Business School, Oxford University and University of Connecticut School of Business, found that there
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