perspectives

Active versus passive

The active versus passive debate was recently given a boost when Warren Buffet suggested in his annual letter that most investors are better off investing passively.

Dominic McCormick, Select Asset Management 1 comment Opinion

perspectives

The Fed's exit strategy

The Fed's published policy on how it will exit QE is fairly old. Overall, though, there is not a huge overhang of securities that the Fed needs to sell to exit.

Dr Robert Gay, Fenwick Advisers Opinion

perspectives

Investing for retirement: the defined contribution challenge

Target date funds are becoming the workhorse for DC plans but there are problems with the approach. This paper offers a portfolio construction framework to overcome them.

Ben Inker & Martin Tarlie, GMO White paper

perspectives

Divorcing your debt benchmark

Divorcing your debt benchmark and adopting more unconstrained approach to debt investing and offering degrees of freedom to the portfolio manager is the new "core".

Lisa Kim, PIMCO Opinion

perspectives

Emerging markets on trial

Against a backdrop of currency slides, yield spikes and chronic equity underperformance, we invited our EM experts to defend their asset class against three charges.

BlackRock Investment Institute White Paper

markets summit

Quantitative squeezing - differentiation in EM Investing

Emerging Markets were a focal point in 2013, repricing as US stimulus, commodity prices and China's boom subsided. In future, EM performance will depend on individual merit.

Kathryn Koch, Goldman Sachs Asset Management Resources

perspectives

The changing face of global risk

Economic, financial, and geopolitical risks are shifting. A year or two ago, six risks stood at center stage. These have now reduced. But six others have been growing.

Nouriel Roubini, Roubini Global Economics 1 comment Opinion

perspectives

Rise of the machines - how will the EMs keep pace?

In theory, recent currency devaluations should make EM countries more competitive. But they're also facing a technological jump that they may not be able to keep up with.

Hon. Dr Pippa Malmgren, Principalis Asset Management Opinion

perspectives

The euthanasia of pensioners in Peoria

So the US budget deficit is contracting because government consumption is falling? It is really just an accounting illusion. Financial repression is still the order of the day.

Charles Gave, GaveKal Opinion

perspectives

Age banding - a model for planning retirement income needs

In recent months, we've highlighted one school of research on funding retirement income, being the sustainable withdrawal rate approach. This paper takes a different approach.

Angela Ashton, PortfolioConstruction Forum 1 comment Research

perspectives

The changing face of correlation?

The challenge for investors over the past several years is that diversification did not work as expected. The dynamic nature of correlation must be factored into portfolio modeling.

Dan Farley, State Street Global Advisors 1 comment White paper

markets summit

The sweet spot of the global economy

There is no doubt that some countries are better placed than others in The Great Escape. In fact, Australia and NZ have the chance to be rock star economies of the 21st century.

Oliver Hartwich, The New Zealand Initiative Resources

perspectives

Safety in numbers?

When any investment and, in particular, an alternative investment begins to be considered mainstream with attendant big inflows, the end is generally nigh.

Tim Farrelly, farrelly's Opinion

perspectives

The global economy's tale risks

Just as it is hard to make a blockbuster film every time, no leader can consistently shape the narratives that affect the economy. But they need to try.

Robert J. Shiller, Yale University Opinion

perspectives

The takeaways from the latest Fama-French research

Does Fama and French's latest work, A Five-Factor Asset Pricing Model, provide any information that can be of practical value to advisers or investors? The answer is no.

Michael Edesess, Fair Advisors 1 comment Opinion

markets summit

The wrong route to the right destination?

We must challenge common assumptions about the US and emerging markets to ensure we are focusing on the best routes to the right destination.

Ronald Temple, Lazard Asset Management Resources

perspectives

Monitoring the success of target date funds

The nature of target date funds - encompassing multiple objectives and changing asset allocations over time - raises challenges for performance reporting.

Sean Henaghan, AMP Capital Investors White paper

perspectives

Malthus, Marx, and Modern Growth

Will each future generation continue to enjoy a better quality of life than its immediate predecessor? The likely answer is yes, but the risks seem higher.

Kenneth Rogoff, Harvard University 1 comment Opinion

perspectives

Thoughts on investing - scale and skill in active management

It's the eternal debate - can active management outperform? Two recent reports offer some interesting insights into the issue.

Angela Ashton, PortfolioConstruction Forum Research