Analysis

Value will come back. It must do. It’s the most persistent of styles, dating back to the research of Benjamin Graham in the 1930s. Its underperformance cannot go on much longer. Surely. Reece Birtles, admittedly biased towards the style, provides a compelling argument as to why the time is now to dive back in. Birtles,…

by David Chaplin BlackRock has laid out the case for a coordinated fiscal and monetary shock policy to defibrillate the global economy as it struggles to register a pulse. In a paper published last week, the BlackRock Investment Institute argues that with both monetary and fiscal losing potency, more radical approaches – such as the…

These stories, thankfully, don’t come along too often. But they do come along. Here’s an entertaining – assuming you weren’t an investor – example of greed, hubris and a lavish lifestyle. And what better place to bring those factors together than in California? In its latest client note, Castle Hall, the global due diligence firm,…

John Peterson, an institutional advisor and investor who runs the Peterson Research Institute, has been monitoring like-for-like actual investment options offered by two big super funds, which track the relative performances of active versus indexed strategies. Here is his latest update, which shows active options widening their lead over passive during longer periods. In a…

The big super funds which take part on National Australia’s Bank’s two-yearly survey about currency management have exhibited a significant upgrade in their views and intent with respect to foreign currency. “It’s no longer a binary – passive or active – decision. It is much more nuanced and integrated in the whole investment process. There…

While quantitative managers, on average, had a rough trot during 2018, including the popular alternative risk premia strategy managers, new work indicates that certain styles will be more resilient in the current market climate, performing better in the event of investor ‘crowding’. A study, by Nick Baltas, head of R&D for systematic trading strategies at…

In a sample using UK stocks, Axioma, the global investment risk advisory firm, points back to some tried and true fundamental beliefs but adds a couple of new ones to assess the likely future behaviour of factors. The firm is rolling out an updated risk model (Version 4), starting with the UK in a blog…

In what a specialist consultant and Bitcoin trading firm, Goldbaum & Partners, sees as the development of an emerging asset class in ‘digital assets’, there may well be a challenge to the characteristics exhibited over the years by gold. It comes at a time when gold is being spruiked as a legitimate investment for institutions….

comment by Greg Bright There’s a reason that the big APRA-regulated super funds didn’t get hauled over the coals by the banking royal commission. They didn’t have anything to hide. The profit-for-member funds were unscathed compared with banks, quasi banks and bank-tainted commercial funds which had embedded financial advice. The super fund sector has been…

The world’s largest fund managers last week shone a spotlight on the difficulties the industry faced as two of them reported their second-quarter earnings results to US brokers and investors. Both BlackRock and State Street suffered further revenue declines in fee revenues. But BlackRock chief executive, Larry Fink, and State’s Street’s Ron O’Hanley were upbeat…

ASX-listed exchange-traded funds and exchange-traded products, such as actively managed listed funds, have become a phenomenon in the past few years, after a slow start. The latest rankings show that smaller organisations are competing well against the world’s largest fund managers. BetaShares, one of those smaller organisations, has observed in its latest industry-wide report, for…

The European alternative assets market is thriving despite a general air of gloom descending on the increasingly fractured continent, according to a new report from global hedge fund research house Preqin. Mark O’Hare, Preqin founder and chief executive, says in the report that “economic growth is not the same thing as activity and opportunities in…