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Factor investing: good in theory, difficult in practice
Investors are always looking for higher returns at lower cost. This has never been truer than in today’s market environment. Not surprisingly many have responded by embracing “factor investing” – the idea that active managers actually earn most of their excessreturns...
Happy 7th anniversary US bull market: Where to now?
Fears over a global recession are overdone, but it is clear we have entered a period of slow growth domestically in the US and internationally. John Doe From a bottom up perspective, we are somewhat cautious on the market currently; we do not anticipate seeing...
A wake-up call for DGFs
There are many commonalities between the countless DGFs available for investors. Thomas Nehring The stated aim of most DGFs is to provide equity-like returns at less than half the volatility, while also targeting capital preservation over a three to five-year...
A return to 'normality'
When they write the final history of central banks and the financial crisis, recent weeks will be a prominent late chapter. Brad Tank Central banks have been looking into the abyss of spiralling negative rates and all-out currency war over recent months –...
Tech: A sector on sale
If you can keep calm and not panic, this market is presenting opportunities in fundamentally well-positioned tech companies at incredibly attractive valuations. Josh Spencer There are wonderful companies on sale, such as Amazon.com or Salesforce. In amarket...
Europe's recovery opportunities
urope remains on the slow road to recovery despite the recent negativity. Martin Todd Compounding the gloom amongst investors is the ratcheting up of event risk. Brexit is looming largest, driving down sterling and threatening sustained instability. However,...
Ardevora funds deliver strong outperformance
Ardevora Asset Management has recently celebrated the five-year anniversary of its fund range, with each of its distinctive strategies significantly outperforming its benchmark since inception. Ardevora, which now manages in excess of £3bn, has a unique investment...
End of active equity managers?
he active manager remains a thriving species in the UK. 76% of AUM is in active funds, 20% in passives, while only 3% is in enhanced index or smart beta funds. Nick Samuels It is curious how resilient active equity managers have been in the face of seemingly...
Investor Confidence rises in March by 8.0 Points to 114.6
State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for March 2016. The Global ICI increased to 114.6, up 8.0 points from February’s revised reading of 106.6. Investors across all regions expressed...
“Smart Beta is not Monkey Business”:
In new research published in the latest issue of the Journal of Index Investing, entitled “Smart Beta is not Monkey Business,” which can be accessed here, ERI Scientific Beta has rejected the claims of “monkey portfolio” proponents, who argue not only that allsmart...
Columbia Threadneedle: ECB reaction
The ECB’s decision to expand the pace of quantitative easing from €60bn to €80bn per month, to push deposit facility rates 0.1% further into negative territory to -0.4% somewhat exceeded market expectations. Negative interest rates will likely be a drag on European...
2016 is a really complicated year
An interview with Michael Browne, portfolio manager on the Legg Mason Martin Currie GF European Absolute Alpha Fund. Did you anticipate the current volatility in global markets? Michael Browne No-one can spot the precise moment when things began todeteriorate....
Making a splash with your cash
Mette Hansen Nobody is excited to hold cash. Historically, pension schemes have tended to hold only the minimum required to pay pensions and administrative costs. There has therefore been little interest in how to manage cash beyond bank accounts and liquidity...
Boost for Italian banks
Filippo Alloatti Italy has unveiled an initiative to minimise non-performing loans (NPLs) in the country's banking system, which will involve securitisations supported by a government guarantee. The programme is known as GACS - Garanzia sulla Cartolarizzazione...
Oil: A house of cards
Greg Bennett At the start of 2015, the median oil price being used by analysts was $80 and $85 for 2015 and 2016. Currently it is $55 and $58 – a 30% cut in the most important modelling assumption – unsurprisingly resulting in negative earnings revisions. Notwithstanding...