Michael Recce: The goldilocks approach to neuroscience, AI and investing

Apologies for the sound here, this interview was recorded using Skype and occasionally the quality drops.

I chat with Michael, Chief Data Scientist at Neuberger Berman, on using alternative data sets to improve insights into portfolios, deep diving into specific companies and industries and how these sets allow us to look at the world in a richer and more immediate fashion than ever before.

Nothing on this podcast is to be considered investment advice or a recommendation. No investment decision or activitiy should be undertaken without first seeking qualified and professional advice.

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Future Fund: AI world order defined by US-China split will hurt capital owners

Future Fund: AI world order defined by US-China split will hurt capital owners

A geostrategic standoff between the US and China over AI would be “extremely damaging for capital owners” according to the Future Fund, Australia’s A$337 billion ($237 billion) sovereign wealth fund, which outlined four “secular scenarios” around AI and its investment implications.

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Towards a new generation of pension funds in Australia

Numerous surveys suggest that Australians are not completely satisfied with superannuation as it exists today. First, fund members tend to think that they will not have enough to retire and second, that investment plan providers are not necessarily acting in their best interest. In this context, we asked in a recent study supported by AXA

The OECD’s plan for long-term investment

G20 financial ministers and central bank governors welcomed the findings of the G20/OECD roundtable on institutional investors and long-term investment last month, which included clear plans to incentivise institutional investors to undertake more long-term investments. The roundtable, “From solutions to actions: implementing measures to encourage institutional long-term investment financing”, held in Singapore recognised that long-term

Why long-horizon investors should adopt factor-based asset allocation

Long-horizon investors can withstand macro-economic volatility and so should tilt towards strategies that are exposed to that, including value, small cap and momentum. Oleg Ruban, vice president in the applied research team at MSCI says this validates factor-investing and factor-based asset allocation for these investors.   Appropriate asset allocation requires explicit attention be paid to

The case for long-termism

Keith Ambachtsheer’s lead article in the Fall 2014 edition of the Rotman International Journal of Pension Management, takes readers through an historical and logical journey that supports the case for long-termism. Importantly he validates this with four high-profile investor case studies which demonstrate that a long-term view benefits society but also the investors, willing to

When factors disagree

Generic strategies designed to harvest a certain factor premium regularly conflict with other factor premiums. We find that the premiums associated with these strategies tend to shrink, sometimes even to zero, in these periods of factor disagreement. Enhanced factor strategies, on the contrary, are explicitly designed to avoid stocks that are unattractive on other established

Are your managers as active as you think they are?

Measuring how active managers actually are is a useful tool for investors. A metric called “active share” can be used by institutional investors to assess active fees, measure and monitor managers styles and maintain portfolio diversification. By Thusith I. Mahanama, chief executive of Assette. Seven years ago, professors Martijn Cremers and Antti Petajisto introduced a

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