20 Top Whitepapers from June 2019
Popular and Trending Papers from June 2019
Our selection of 20 top papers for the month of June covers a wide variety of different topics, including economics, pensions issues, ESG investing, the equity risk premium, and much more besides.
Some of the papers selected have a restricted geographical distribution, so you may not see all 20 papers in the list below. However, you can visit Savvy Investor today to browse more than 20,000 white papers, and quickly identify the best papers on the topics that matter to you.
Global Economic Outlook: Expectations Diverge (Franklin Templeton, Jun 2019)
(For compliance reasons, this paper is only accessible in Certain Geographies)
Franklin Templeton's new June outlook considers an economic environment where inflation is subdued and slower growth is a rising concern, but some central banks are constrained in the policy response they can make. With bonds markets remaining expensive, how should investors position themselves?
Evaluating and Implementing Defensive Equity Strategies (Intech, 2019)
(For compliance reasons, this paper is only accessible in Certain Geographies)
Intech examines the different approaches to defensive equity strategies, classifying them by outcome, and analysing their efficacy.
Signs of Danger in CLOs? Not So Fast (PineBridge, Jun 2019)
Some commentators are warning that CLOs will be the next harbingers of doom, suggesting that an imminent economic slowdown will see CLOs suffer the same fate that CDOs suffered prior to the 2008 financial crisis. This paper argues a contrary view - that the doomsayers are ignoring some important facts and CLOs will actually perform well in the next downturn.
Revving Pension Plans’ Funding Engines (Cambridge Associates, 2019)
In recent years, many corporate DB pension plans have seen improvements in their funded status. Recent market movements, however, have rolled back some of this improvement and many funds still need to deliver significant returns. This papers offers a framework for plan sponsors to meet their objectives, in the context of a difficult market environment where valuations are high and the economic and credit cycles are extended.
Green Investments: Pick Your Poison (Fidelity Intl blog, Jun 2019)
(For compliance reasons, this paper is only accessible in the UK & Europe)
In this short note, Fidelity makes a simple point - green investing is NOT black and white. In fact it's littered with grey areas. Consensus opinions can and will change over time, and so value judgements made today may not hold in the future. How should investors think and act, in the light of this difficult reality?
Time to get your core in shape (BlackRock, 2019)
(For compliance reasons, this paper is only accessible in Certain Geographies)
This BlackRock paper explains how a strategic process based around indexing and ETF selection can be used to build better core portfolios.
Board effectiveness: Lessons from companies to trustees (LGIM, 2019)
(For compliance reasons, this paper is not accessible in the United States & Canada)
This short paper from LGIM considers the lessons that pension trustees can learn from the best governance practices at corporations. The paper considers the importance of transparency, the benefits of having a Senior Independent Director, the role of external advisers, and the need for a diversity of thought and skills.
Opioid exposure presents risks to pharmaceutical industry (Eaton Vance, Jun 2019)
(For compliance reasons, this paper is only accessible in the United States & Canada)
This Eaton Vance paper explains the risks that the opioid crisis presents to companies within the pharmaceutical industry.
Invesco Real Estate House View: H1 2019 European Market Outlook
(For compliance reasons, this paper is only accessible in Certain Geographies)
This 27-page report by Invesco provides a detailed analysis of the outlook for the European real estate market.
Modern Monetary Theory: Could it go mainstream? (Aviva Investors blog, Jun 2019)
David Nowakowski discusses an obscure branch of economic theory, which is gaining significant political support and could potentially have major ramifications for monetary policy. He explains that conventional macroeconomic theory suffers from a major flaw - the failure to coherently explain the causes of inflation - which makes the current consensus vulnerable.
Equity Risk Premiums: Determinants, Estimation and Implications (Damodaran)
Professor Aswath Damodaran presents the 2019 edition of his highly respected work on equity risk premiums (ERP). The paper covers a wide range of ERP related issues, beginning by considering the economic determinants of the ERP and closing with a discussion of how to choose the best value for ERP in practice, given that different approaches yield different values.
Value Investing: Bruised by 1000 Cuts (GMO, 2019)
This four-page research paper analyses the recent underperformance of "value" and discusses the effectiveness of value as a style. The paper explains why value investing has added value historically and examines the reasons why value has underperformed more recently. The paper finishes by exploring what the future might hold and providing some advice for investors.
Smart Beta Strategies: A Main Driver of ETF Demand (BlackRock, 2019)
(For compliance reasons, this paper is only accessible in the United States)
This two-page note from Greenwich Associates reveals the results of interviews with over 180 institutional investors to understand how they use ETFs to capture factor-based premiums.
Tackling the plastic age (NNIP, 2019)
It is difficult to imagine a world without plastics. They will not easily replaced, but the environmental damage that they do is becoming more and more apparent. In this 8-page paper, NNIP identifies three key areas that responsible investors can focus on, in their engagement with companies, to help mitigate the problems caused by plastics.
ESG: Do you or Don't you? (UBS AM, 2019)
This 60 page report from UBS examines the attitude, motivations and practices of asset owners around the world with regard to ESG. It explores a whole host of questions, including how ESG impacts manager selection, DC pensions and financial performance.
The impact of ESG momentum on valuations (Lyxor ETF, 2019)
(For compliance reasons, this paper is only accessible in the UK & Europe)
Lyxor highlights research from MSCI which provides evidence to suggest a financial, as well as a moral, imperative to ESG investing. This research shows a positive correlation between an improvement in a company's approach to ESG (defined using MSCI's measure of ESG momentum) and subsequent investment performance.
Practical considerations for listed infrastructure (FTSE Russell, 2019)
In this 19-page paper, FTSE Russell examines the characteristics of listed infrastructure, the indexes available to capture returns, and how this differs from investing in unlisted infrastructure.
MFS? Institutional Investor Compass? - An Asset Owner Survey (2019)
This 8-page paper reveals the results of a survey of over 540 asset owners, who were asked their thoughts relating to the market outlook, confidence in asset managers, manager evaluation and time horizons, and diversification within (and into) fixed income.
ETFs: A Primary Means of Obtaining Fixed Income Exposure (BlackRock, 2019)
(For compliance reasons, this paper is only accessible in the United States)
This study from Greenwich Associates reveals how institutional investors are increasingly using ETFs as a primary means of obtaining fixed income exposures. The paper examines the reasons behind the trend towards bond ETFs; these include greater liquidity, speed and low expenses.
How America Saves 2019 (Vanguard)
This comprehensive 120-page report from Vanguard examines the retirement savings behavior of Americans in almost 2,000 defined contribution plans, revealing trends in how DC plan members invest and access their retirement savings.
ABOUT THE AUTHOR
Andrew Perrins is a former Actuary and Asset Allocator. as an Actuary, he worked for 15 years in, serving as Director of Asset Allocation for Abbey Life Chase Manhattan, before setting out on a more entrepreneurial path.
To contact him, email [email protected]