Although most factor research focuses on the equity market, the concept and benefits of factor investing apply equally well to the corporate bond market. A smart way of investing is combining the factors into a multi-factor credit portfolio in order to diversify across factors. A multi-factor portfolio retains the high Sharpe ratio of the individual factors, but with smaller drawdowns and lower tracking error versus the market. Moreover, in a multi-asset portfolio, corporate bond factors also add value, beyond the equity factors. Read more about this white paper.
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Smart credit investing: harvesting factor premiums
Jeroen van Zundert, Patrick Houweling PhD, research, Robeco Asset Management
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Why Asian equities’ growth will outlast the AI-driven semiconductor cycle
In the latest episode of the Fiduciary Investors Series, Liao spoke with Top1000funds.com Asia Pacific correspondent Darcy Song on why the convergence of innovation, demographics and improving shareholder returns makes Asian equities an increasingly compelling diversification trade for asset owners navigating a geopolitically fractured world.
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The Path Forward: Designing the Ideal Defined Contribution Plan
The Path Forward: Designing the Ideal Defined Contribution Plan poised the question: “How would you design the ideal workplace DC plan if you were freed from existing laws, structures, history and standard practices?” This paper shares the 10 characteristics that plan sponsors and consultants believe would define the ideal DC plan structure. Click here to
Catching the wave: Regulatory change creates new opportunities for tax-transparent cross-border pooling
Regulatory changes currently sweeping across Europe are creating a wave of opportunity for the European tax-transparent cross-border pooling industry. Northern Trust’s Aaron Overy, head of business development for cross-border pooling, explores the key drivers shaping the European cross-border pooling industry including UCITS, Solvency II, US regulations and more. Click here to download the reportmrec4inarticleinline Sponsored
Wind of Change
Luxembourg is emerging as a key gateway for hedge fund managers as rapidly evolving investor demands and legislative changes are creating a fundamental shift in their business models. Northern Trust’s Ian Headon, product manager for hedge funds in EMEA, explores the jurisdiction’s growing opportunities for hedge fund managers. Click here to download the reportmrec4inarticleinline Sponsored
Insights on the Impact of Currency on Performance
Amidst increasing demand for enhanced transparency around currency management, a new Northern Trust white paper examines the impact of currency on performance. Highly topical at a time when currency is increasingly treated as a separate asset class allocation, the paper includes insights on the impact of currency movements on an investment portfolio and common currency
The Changing Shape of European Investment Management
The European investment management industry is undergoing unprecedented change. The financial crisis and an evolving regulatory environment have reinforced cost pressures that have been building in recent years, creating an urgent need to achieve scale and efficiencies through a focus on core competencies. Already, a wave of consolidation has begun that is set to continue
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