Active management leaves a unique fingerprint on portfolio returns. The return contribution of security selection and market timing – commonly […]
The idea that outperformance comes more easily to a fund manager managing portfolios with a larger Active Share is in […]
Developing policies to address questions that arise in the face of population ageing is a huge challenge for governments because there is no precedent.
If investors now view Bunds as more fairly priced, what could prompt a return of the euro parity trade in currency markets?
Investors who have been inclined to dismiss listed real estate as an attractive asset class since the financial crisis should […]
What’s hot: a report from our men at the Joint Spring Seminar with Inquire UK at the Coombe Abbey Hotel […]
As 2015 starts, it looks like the issues that defined 2014 will dominate the New Year as well: oil prices continue to fall and the euro faces more pressure.
There is broad agreement in the investment community that the steep slide in oil prices will serve to support world growth through a number of channels.
Sector-neutral, low-risk equity strategies can efficiently generate alpha while reducing exposure to defensive sectors and thus the interest rate exposure
Inflation has fallen significantly in the eurozone this year, forcing the ECB to announce a series of measures to head off deflation. So far, though, there is little sign of an end to the disinflationary trend.
The volatility of asset class returns is not constant over time. Similarly, traditional strategies aiming to capture factor premia also show variable volatility over time. Constant volatility approaches can be successful ways to exploit these anomalies, also when applied to factor investing.
Overview from the latest Axioma Quant Forum in London on 24 September 2014
During the summer, we created a quiz to work out which of the four main alpha quant factors suits each individuals personality best. Being quants, we could not resist the temptation to analyse the results…
Highlighting the importance of combining the four cardinal virtues of Plato in relation to the four main long-term factors of equity outperformance, rather than “timing” them.
Many investors became accustomed to earning attractive returns with hardly any risk from investing in money markets, but with interest rates now lingering near all-time lows, they have little choice but to take more risk to earn anything like an appealing yield.
The constraints of the zero lower bound means developed economies may be confronted with the prospect of a future of chronically weak demand and slow economic growth
Most investors are risk-averse: they are more sensitive about losing money (even if the loss is unrealised, i.e. they haven’t sold the loss-making position yet) than about missing out on a nice opportunity.
The fallout of the Great Recession and the way it has been addressed have only made finding an appropriate investment strategy more daunting than ever.