Traditional Asset Classes

All the articles about Traditional Asset Classes
From newest to oldest

The Myth of Market Concentration
By Susan McDermott, CFA Chief Investment Officer, Institutional Advisory
Recently, there have been a number of articles discussing concentration of the S&P 500 Stock Index. Particular focus has been on the FAANG stocks – Facebook, Apple, Amazon, Netflix and Google (Alphabet) – as well as the Technology sector. Some of the articles outline parallels with the tech bubble of 2000. A natural question is whether or not some action should be taken to adjust portfolios. Read in PDF
Pavilion’s Capital Market Assumption and Outlook
By Pavilion Advisory Group Inc.
Each January, Pavilion updates its views on the long-term (10-15 years) expected returns of the major asset classes. These expected returns, along with volatility and correlation measures, form our capital market assumptions. The assumptions are incorporated into our asset allocation modeling work and serve as a foundation for our strategic asset allocation advice. Read in PDF
Risk Update: Equities in a rising rate environment
By Dr. Robert Lee, Ph.D., Director of Risk Management and Strategic Analysis.
As markets prepare for likely Fed rate hikes, concerns have grown regarding the possible implications for equity valuations. While no one can say with certainty what will ultimately transpire, a combination of history and theory does provide some guidance. Read in PDF
Publication thumbnail Currency Exposure: Diversifier or Unrewarded Risk?
By Yusuke Khan, CFA Senior Consultant
Currency movements have the potential to impact significantly the return and risk profiles of globally-invested portfolios, especially in an environment of renewed talk of currency wars. Read in PDF
Publication thumbnail How global equity indices are constructed
By Susan McDermott, CFA Chief Investment Officer, Institutional Advisory
There are a number of providers of global equity indices. Each has different index construction rules although there are many similarities. For simplicity, in this article we review the composition of the global equity indices based on MSCI’s rules. MSCI’s global equity indices are among the most popular benchmarks for non-U.S. and global equity portfolios. Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Fixed income investors have options to increase returns lower risk
By Michael McMurray, CFA, Senior Consultant
As all investors are aware, fixed income yields and overall returns generally have been trending downward for many years, impinging on the ability of institutions to meet their return targets. With interest rates at such low levels, the risk of negative returns due to rising rates is a concern. Read in PDF (CAN) | (US)Read as an online magazine FlexPaper Version - (CAN) | FlexPaper Version - (US)
Publication thumbnail Implementing a risk assessment when managing change
By Eric Bolduc, Vice President, Institutional Sales & Servicing
While the decision to leave a manager is difficult, plan sponsors must find answers to important questions. Do I cut ties quickly or stay with my existing manager until a replacement has been appointed? How long will this take? What are the risks of doing something vs. nothing? Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Factors to consider when selecting managers
By David Finstad, Director Hedge Fund Management, OMERS Capital Markets
In this article, I review the methodology and the results of the original study and refresh the data up to the end of 2012 to see whether the same factors that influenced performance then are still relevant. Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail The Investment Style Box – Adding substance to style
By Pierre Collins, CA, CFA, Senior Consultant
We’ve all seen the famous 3 x 3 Investment Style Box, with Size (Large, Mid, Small) on the vertical axis, and Style (Value, Core (or “Blend”), Growth) on the horizontal axis…Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Unconstrained Fixed Income Strategy – A review
By Alyssa Cheatham, CFA, CAIA, Senior Consultant
Unconstrained strategies are not managed against an index. Rather, sector allocation, duration positioning and security selection are based on the manager’s assessment of absolute value. Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail What defines an Emerging Market?
By Susan McDermott, CFA, CIO, Institutional Advisory
Most of the organizations that attempt to define emerging markets are large nongovernmental organizations such as the Organization for Economic Cooperation and Development, the International Monetary Fund and the World Bank…Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Re-examining the Core Fixed Income Portfolio
By Samantha Cleyn, Research Analyst
Core Fixed Income portfolios have traditionally helped investors reach a number of their objectives such as paying benefits, funding operating budgets and capital expenditures, protecting capital, as well as lowering volatility and mitigating future contribution levels. Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Passive Aggressive Investing – Ideas and Insights into Different Forms of Passive Investing
By Pierre Collins, CA, CFA, Senior Consultant
Identifying top managers is no easy task, and there are always surprises along the way, with some managers
considered to be strong firms lagging their peers and benchmarks for uncomfortably long periods of time. Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Does Investing in Income-Oriented Strategies Pay Dividend?
By Yusuke Khan, CFA, FRM, Senior Consultant
…Investing in high dividend yielding stocks can provide investors with a defensive equity portfolio offering an attractive level of current income, while also allowing for the possibility of capital growth through share price appreciation. Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Going Long-Duration or Short-Duration Bonds: Does it Matter?
By Eric Fontaine, FSA, FCIA, CFA, Senior Consultant & Director, Multi-Manager Strategies
Investing in long duration bonds is the most appropriate approach for better matching pension assets with recognition of the plan’s liabilities (as a better risk management tool). Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Evolution of Investment Structures – What have we learned?
by Eric Fontaine, FSA, FCIA, CFA, Senior Consultant & Director, Multi-Manager Strategies
From 1990 to 1999, industry discussions were focused primarily on the use and sharing of pension surpluses. Simultaneously there was a continued push to raise the foreign content limit (despite an increase from 10 to 20 per cent in the earlier part of the decade).Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail Long/Short as Long-Only Equity Replacement – Evaluation of Long/Short Strategies: Active Extension, Equity Market Neutral and Directional
In this article we qualitatively review the three primary categories of long/short equity: active extension, market neutral and directional, with particular focus on the impact of adding the respective strategies to traditional fixed income and equity portfolios.Read in PDF | FlexPaper Version - Read as an online magazine
Publication thumbnail The Impact of Long/Short on your Portfolio
By Michael McMurray, CFA, Senior Consultant & Sunny Ng
From 1990 to 1999, industry discussions were focused primarily on the use and sharing of pension surpluses. Simultaneously there was a continued push to raise the foreign content limit (despite an increase from 10 to 20 per cent in the earlier part of the decade).Read in PDF | FlexPaper Version - Read as an online magazine