20 Top White Papers from December 2020

Popular and Trending Papers from December 2020

Markets have recently traded with an underlying bullish tone – although somewhat conflicted by the continuing rollout of vaccine injection plans in the US and UK and the apperance of new Covid-19 variants causing consternation. The last FOMC meeting was largely uneventful, with eyes now turning to Fed policy moves in 2021. And the electoral college confirmed Joe Biden’s presidential victory. At the last minute, it appears that the EU and the UK have wrangled a trade deal from the jaws of defeat.

This month’s selection of papers features papers from across the spectrum of institutional asset management, including issues confronting pension asset owners, the increasing use of alternative assets and machine learning/big data. The Savvy Investor team thanks all our partners and members for their support during what turned out to be a truly unprecedented year, and wishes everyone a safe and happy holiday season!

Global Gold ETFs: A gateway to the gold market (World Gold Council, Nov 2020)

In this paper, the World Gold Council outlines the rise in the use of gold as a strategic asset, and how investor demand has led to an increasing range of gold-related ETFs.

Does Rebalancing Still Make Sense? (Intech, Dec 2020)

This Intech paper demonstrates how investors might benefit from the long-term stock outperformance potential derived from active diversification and systematic rebalancing.

Net-Zero Emissions, Net-Zero Cost: One route for the EU (McKinsey & Company)

McKinsey & Company explores net-zero emissions as one way the EU could deliver widespread economic benefits and reduce its emissions by 55% by 2030.

2021 Outlook: A V-shaped recovery (Northern Trust AM, Dec 2020)

Northern Trust AM presents their Outlook paper for 2021, in which their views of a V-shaped recovery are closely linked to the succesful deployment of Covid vaccines.

Data Governance and Distribution (FactSet, 2020)

FactSet outlines five key elements that should be considered when building a robust data governance and distribution process.

Fixed Income Insights: Recovery continues (PineBridge Investments, Dec 2020)

PineBridge Investments offers the latest in its regular series of insights into the world of fixed income investing.

The CLO Investment Opportunity (Eaton Vance blog, Nov 2020)

The authors of this Eaton Vance paper make the case for investing in collateralised loan obligations (CLOs). They present several advantages that come with investing in this often overlooked area of the debt market.

Equity Portfolio Manager Active Risk and Information Ratio (PGIM, 2020)

PGIM explores the relationship between high active risk and high information ratios across a range of global equity mandates.

Appraising Home Bias Exposure - Mexico (FTSE Russell, 2020)

FTSE Russell argues that despite the interconnectedness of financial systems and global markets, pension funds the world over tend to focus on their own markets. This paper looks at the investment effects of this in the Mexican pension fund market.

Ways to Improve Your Active Risk (AQR Capital Management, 2020)

AQR Capital Management examines the ways in which investors contribute, often unintentionally, to the active risk of a portfolio.

The Builder’s Guide to Bitcoin (Invesco, 2020)

Invesco deconstructs the Bitcoin price using its gold model and thinks the recent run-up in prices warrants some caution.

Alternative Investments: Improving portfolio performance (UBS AM, 2020)

In this paper, UBS AM takes a detailed look at alternative asset classes and why investors are increasingly turning to these kinds of assets to make up more substantial portfolio allocations.

PE Fund Debt: Capital flows, performance, and agency costs (2020)

This paper looks at PE firms that use subscription lines of credit (SLCs). It finds that many poorly performing firms use them. The authors argue that a conflict of interest exists between investors and fund managers.

‘Silver Squeeze’: Tackling decumulation dilemmas for UK retirees (LGIM, 2020)

This paper from LGIM looks at the post-retirement years as life expectancy increases, and its implications for both savers and their providers.

2020 US Defined Contribution Plan Sponsor Survey (Willis Towers Watson)

Willis Towers Watson's survey provides a useful snapshot into the US Defined Contribution industry, how it is evolving to meet many challenges, and what its future might hold.

FTSE350 DB Pensions Analysis 2020 (Hymans Robertson)

In this paper by Hymans Robertson, the authors investigate both the short-term impact of the COVID-19 pandemic on UK Defined Benefit schemes and the potential impact of covenant risk on endgames.

Can We Trust Machines to Pick Stocks? (State Street, 2020)

State Street offers an insightful look into machine learning and how sometimes, machines do spot relationships that humans may miss.

Historical Returns of the Market Portfolio (2019)

This paper is an invaluable reference tool for those investigating asset market returns and their associated risks from 1960-2017.

Visualizing Microeconomic Municipal Data (MetLife Investment Management, 2020)

MetLife Investment Management analysts model key housing, population, and labor force changes across the U.S. and show how it might be useful in aiding the selection of municipal securities.

Australia Real Estate — The enduring merit of education (Nuveen, Dec 2020)

The Australian student accommodation market is the focus of this paper from Nuveen, who highlight both the short-term challenges and longer-term opportunities that exist in this niche element of the real estate asset class.

ABOUT THE AUTHOR

Andrew Perrins is a former Actuary and Asset Allocator. After qualifying as an Actuary, he worked for 15 years in investment management, serving as Director of Asset Allocation for Abbey Life and for Chase Manhattan, before setting out on a more entrepreneurial path.

To contact him, email [email protected]