September’s publication summarizes two articles addressing sustainability issues in an investing context. The first suggests that security analysts who consider a broad dataset beyond financial data in making investment decisions may develop unique insights, and the second argues that firms with good performance on material sustainability factors outperform firms with poor performance.
The answer depends on what kind of investor you are.
For value-biased investors, energy master limited partnerships (MLPs) are (somewhat suddenly) more appealing than they have been in several years.
While by some metrics low volatility stocks appear richly valued today, low volatility strategies are still relevant to many investors and can play an important role in portfolio construction.
July’s publication summarizes three articles addressing risk factor investing. The first argues for the inclusion of a diversified factor strategy in a portfolio, the second outlines a broad framework aimed at identifying appropriate factors, and the third calls for higher statistical hurdles to test newly discovered factors.
Plans with active participants need a holistic, flexible risk budgeting approach—not a simple glide path
The situations in China and Greece, not to mention Puerto Rico’s debt woes, serve as a poignant reminder not to be complacent. Investors should take care that portfolios are well constructed, diversified, and consistent with their ability to absorb downside risks while meeting long-term return objectives. With risks rising in some areas, and few bargains…
This edition of VantagePoint reviews the potential for contagion from Greece, concluding that the ECB appears to have adequate ammunition to manage through current conditions, but longer-term political risks remain. We consider recent activity in Chinese equity markets and conclude that offshore Chinese H-shares offer more appeal than onshore A-shares, where upside potential is limited as highly leveraged investors seek to reduce exposure by selling into rallies. We examine the prospects for a sustained reversal of major trends that have persisted since last year, concluding that reversals appear unlikely for now.
While private impact investing has experienced significant growth and maturation, the field is in need of robust analysis on financial performance to help inform investor expectations. This report introduces the first Impact Investing Benchmark, which begins to address this important facet of the conversation.
Market Valuations at the Start of US Rate-Hike Cycles Charles Himmelberg et al., Goldman Sachs, April 26, 2015 The Federal Reserve’s expected decision to hike rates later this year has prompted questions about the impact on the market, particularly given the prolonged period rates have effectively been held at zero. In a recent article, Goldman…