Analysis

(pictured: Louis Kuijs) The currency investment decision for super funds is the biggest and, arguably, most difficult they have to make. The Australian dollar has had the largest depreciation of any Asia Pacific currency since mid-2014, benefitting most big funds. In a new study, Oxford Economics predicts the future for Asian currencies. According to the paper…

(pictured: Adrian Banner) Portfolio rebalancing has long been recognised as a way to add long-term value and maintain or improve diversification. However, it has always been difficult to measure its impact. Now, a US-based quant manager has applied to patent its algorithm for better performance attribution. Enhanced Investment Technologies (known as INTECH outside of Australia), an…

(pictured: Patrick Lemmens and Jeroen van Oerle)   To date it is the big banks which have invested most in the development of distributed ledger technologies, commonly known as ‘blockchain’. But uses other than streamlined payments are rapidly being explored. New research calmly examines the likely impact for all financial services players. The research, by investment…

(pictured: Damian Moloney)  Frontier Advisors is turning up the heat in the increasingly widespread debate about funds management fees, with its chief executive putting pen to paper for a thought-leadership piece which updates previous work by the asset consultancy. The latest paper, “Progressing a New Deal on Fees: Ideas for Institutional Investors” aims to: “Reiterate the…

(pictured: Pru Bennett)  In an increasingly risk conscious investing world ESG factors have come a long way since the mini-boom in ethical funds of the early 2000s. And, according to one of the most experienced investors in the field, Australia stands tall as a “mature” market for ESG and related practices. Pru Bennett, the Hong…

(pictured: Ian Silk) Comment by Greg Bright Quite possibly. AustralianSuper, the bellwether go-to and surprisingly innovative super fund, Australia’s largest and, arguably, best across a range of metrics, proved to all and sundry this week what can be achieved when you try. But maybe this is the time to also worry a little about the future…

(pictured: David Scobie) Investors should put more weight on alignment of interests when hiring or firing fund managers, according to a new Mercer report. And they should avoid changing managers wherever possible. While investors necessarily focus on a manager’s investment and operational strength, the study says the “often overlooked” alignment factor provides some important flow-on benefits. For…

(pictured: Craig Russ)  In uncertain times, such as these, investors have traditionally turned to the fixed interest market for their downside protection. But this time it really might be different. In the ‘new normal’ of low-to-zero-to-negative interest rates, investors may well be better off in the floating-rate debt market than taking on increasing duration –…

(pictured: Hugh MacNally)  Income and capital preservation are two of the main aims of many investors, especially retirees, but in recent months, with the drop-off in performance of the banks, investors are being prompted to seek out new core stocks for their portfolios. According to Hugh MacNally, founder and chairman of Private Portfolio Managers (PPM),…

(pictured: Daniel von Preyss) Renewable energy strikes a chord with institutional investors around the world, especially those in commodities-orientated countries like Australia. The questions, though, are not so much about ‘why’ but are rather: ‘how’, ‘how much’, ‘where’ and ‘when’. Daniel von Preyss of Impax Asset Management believes he has the answers. The managing director in…

Sports betting could become a new asset class, offering uncorrelated returns to a standard pension fund portfolio with potentially better returns than the average hedge fund, according to a UK study. The study by two quant research managers, Lovjit Thukral and Pedro Vergel Eleuterio, both of Long Rock Capital in London, showed that a relatively simple…

(pictured: Paul Moghtader) By Greg Bright In the evolution of funds management, coupled with the evolution of big super funds, quantitative investing has had its own twists and turns. Post-GFC, quants are enjoying a resurgence. They are blending investment styles to achieve an outcome. Paul Moghtader , Boston-based portfolio manager and head of a nine-person quant…