Themes from the quarterly Quantitative Beta Research Summit
As the value factor is mired in one of its worst drawdowns in history, we analyze its underperformance and explain why we think it is cyclical, not structural.
We raised the probability of Recession to 55% after virus-induced shocks, oil prices’ collapse and violent market volatility. We are de-risking, adding very high quality duration, while expecting credit markets to cheapen and reserve currencies to do well
Our summer 2019 edition looks at UK pension buy and maintain strategies, the globalisation of real estate holdings and the importance of timing when investing in a volatile, late cycle environment.
UK pension funds are moving to globalise their real estate holdings, taking advantage of increased diversification benefits and greater scale of investment opportunities.
Caught our eye: UK pension buy and maintain strategies could bring demand pressure to sterling corporate bonds
In an already tightly held market for sterling corporate bonds, even modest moves by UK pension funds to adopt buy and maintain strategies could create stiff competition for these assets.
In the wake of the Global Financial Crisis, all eyes are on dynamic, responsive funding strategies that can deliver long-term goals in a risk-aware way.
The authors discuss sustainable investing, highlighting why there is not trade-off between a focus on sustainability and the maximisation of profit.
UK pension plans concerned about how to invest in a volatile, late cycle environment may want to consider two practices: continue effective rebalancing and don’t postpone further duration hedging in anticipation of rising rates.
The US recovery is now the longest on record. Nobody knows exactly how much longer this expansion will last.