The difficulties associated with estimating equity duration do not detract from its importance in portfolio immunization, tactical asset allocation, and risk management.
Explore the potential opportunities and remaining challenges for green bonds as green finance investment instruments.
In this paper, we explore how a stylized, factor-based framework could be applied to equity markets in Latin America and whether performance can vary in different Latin American countries.
Environmental, social, and governance (ESG) as an investment theme has held some clout in the market for a while, but it continues to evolve as an asset class.
In recent years, income-seeking market participants have shown increased interest in buy-write strategies that exchange upside potential for upfront option premium.
S&P Global Equity Indices Monthly Update February 2017
While comparing active funds against a benchmark index is a typical practice used to evaluate their performance, persistence is an additional test that reveals fund managers’ skills in different market environments.
The S&P Target Date Scorecard provides performance comparisons, equal- and asset-weighted category averages, and analytics covering the target date fund (TDF) universe.
One of the key measurements of successful active management is the ability of a manager to deliver consistent positive excess returns for some period, on a net-of-fees basis.
While sustainable investing is not a new concept, it was overlooked in the financial markets up until a few years ago. Thanks to a few key catalysts, namely the United Nations-backed Principles for Responsible Investment (PRI),2 environmental, social, and governance (ESG) research, and academic studies focusing on evidence around materiality, sustainability is in the day-to-day conscious of financial market participants
S&P Global Equity Indices Monthly Update January 2017
The widespread adoption of the low volatility strategies by retail and institutional market participants to gain exposure to the factor indicates that low-risk investing is here to stay. It is important that market participants understand the fundamental differences between the two established forms of low-risk index construction: rankings based versus optimization based.
A number of key developments are likely to shape environmental, social, and governance (ESG) trends over the course of 2017. Managing these transitions and the deeply interconnected risks they entail will require long-term thinking, investment, and international cooperation.
S&P Dow Jones Indices Shariah Quantitative Analysis: Q4 2016
Does Past Performance Matter?
While traditional high dividend payers have performed strongly in recent years, they have become quite expensive by most valuation metrics. The previous low-interest-rate environment paved the way for many of these businesses to load up on debt to expand their operations, while continuing to pay high dividends. As a result, many of these companies may come under pressure when rates rise.
The existence of factor risk premia is well established in the global market. A factor can be thought of as an element that helps to explain the source of risk/return characteristics of a portfolio.
At the December 2015 Conference of the Parties (COP 21) in Paris, 197 countries agreed on their aim to keep global temperature rise “well below” 2ºC from pre-industrial times. Explore the ramifications of that goal and the movement toward COP 22.
Low volatility strategies, as the name suggests, typically perform well in times of market instability. Challenging traditional capital asset pricing theory, they have also outperformed their benchmarks over time despite exhibiting lower risk.