Investors, including the $194 billion State Board of Administration of Florida (SBA), are using factor analysis to decompose returns, select active managers and negotiate fees.
Prominent CIOs say active management’s place is secure, even as passive strategies surge in popularity. But the two types of strategies aren’t as distinct as in years past.
Factor investing has become a topic du jour, but according to four experts, there are only a handful of factors that are persistent and robust. If used strategically, these can be useful.
Renewable energy infrastructure is an immature market and needs an accepted definition of equity risk, according to Jim Barry, global head of Blackrock Infrastructure Investment Group.
The impact of size is a delicate point for asset managers. For specialist asset classes, and boutique managers, being small and nimble can be a source of alpha. On the other hand, being large can reduce fees and increase innovation and product offering. But now there is evidence to show that the emergence of the... Read more »
Andrew Ang believes factor investing is a more efficient way to organise a portfolio as it allows liquid and illiquid strategies to be managed across the portfolio. It also has the added benefit of honing managers on value creation. He’s been working with a handful of investors while Professor of Finance at Columbia University on... Read more »
As the fixed income asset class undergoes rapid change and the opportunity set expands, unconstrained bond funds have become popular. But as this article examines, with that expanded opportunity set comes new considerations including a wider risk/return spectrum among managers. Trends in the global investment universe tend to come around every six months or... Read more »
Blackrock has a favourable view on equities, relative to bonds, but within fixed income it advocates an unconstrained approach. Amanda White spoke to chief investment strategist, Russ Koesterich. Equities look cheap relative to bonds or cash, says chief investment strategist for Blackrock and iShares chief global investment strategist, Russ Koesterich, with the manager recommending... Read more »
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... Read more »
The prospect of a seismic shift from bond to equity investments looks set to pass most of the world’s pension funds by, argue experts. The concept of a ‘Great Rotation’ rose to prominence following its use by Bank of America Merrill Lynch in October. It argued in a note that “the era of bond outperformance... Read more »
They may be on opposite sides of the Earth, but Chile in Latin America and Central Asia’s sparsely populated Mongolia share more than a few similarities. Both boast some of the biggest copper deposits in the world and now Mongolia has turned to Chile for advice on how best to steward income from its forecast... Read more »
If Tony Broccardo, head of Oak Pensions Asset Management, the investment arm of the £23-billion ($35.6-billion) pension fund for employees of London-headquartered bank, Barclays, wasn’t a fund manager he would have been an architect. But Broccardo has applied similar skills of stress testing, planning and making something structurally secure to the return-seeking fund, one of... Read more »