Jane Hume MP: Policy in unprecedented times

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Computing power, not sanctions, the real lever over China: Kotkin

Computing power, not sanctions, the real lever over China: Kotkin

Computing power offers efficient leverage that Hoover Institution historian Stephen Kotkin argues the US has against China, with the US dominating world’s compute capacity at 75 to 80 per cent. In a keynote address to the Fiduciary Investors Symposium at Stanford University, Kotkin also examined how Nvidia's Jensen Huang could become the central actor reshaping that balance.

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Factors trump skill: MSCI

MSCI research has shown that, among top-performing funds, more than half of active returns come from factors, rather than manager skill, and style factors have the biggest impact.

Equity risk premium appears intact

The equity risk premium will reflect long-term averages, based in part on a Financial Analysts Journal article that shows buybacks are now top drivers of equity returns, replacing dividends.

The governance-performance link

Academics at Switzerland’s University of St. Gallen find that governance is positively related to both excess and risk-adjusted net returns but only marginally related to funds’ asset choices.

GPIF, ADIA: complex success

Japan’s GPIF has only recently moved into equities, while ADIA has a rich history of investing in a variety of asset classes. The returns of both giants show the benefits of diversification.

Fund braces for geopolitical risk

SEB has restructured its risk factor portfolio and raised the allocation to senior secure loans within its large alternatives portfolio. The changes address rising global uncertainty.

Calif. fund seeks ‘safe’ returns

San Bernardino County Employees’ Retirement Association seeks value assets with income and a contract. These qualities help ensure a return, while increasing holdings in cash and alternatives.

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