How can allocators find the right opportunities today?

Explore at length three of themes which are re-defining the investment process. Asset allocation is a broad topic. However, thinking about it from different angels can help investors spot new opportunities. Then, the coming of the green economy cannot be ignored. Even if ESG investing may seem out of favor right now, the world is moving towards a greener future. Finally, quantitative methods can be used to both augment a human-drive investment process or, in some cases, to fully replace it.

ASSET ALLOCATION

5-Year Expected Returns: Triple Power Play (Robeco)

Expected returns are a vital element of any investor’s strategic decision-making. This report explores the complex developments which will drive returns in the years ahead.

The Big Picture – Global Asset Allocation Sep 2023 (Invesco)

For compliance reasons, this paper is only accessible in the United States

Monetary aggregates in key economies have been declining in recent months. This does not bode well for the global economy. Here is how investors can navigate this situation.

Tactical Asset Allocation During the 2022 Bear Market (Allocate Smartly)

Tactical Asset Allocation is a useful approach to investing, but it does not enable investors to perfectly call market tops and prevent all the drawdowns.

Asset Allocation Monthly: September – Complacent? Not Us (BNP Paribas AM)

Recent data have challenged the consensus narrative for a ‘Goldilocks’ outcome of improving economic growth and lower inflation.

GREEN ECONOMY

How Do Rising Interest Rates Affect Natural Capital Investments? (Nuveen)

This analysis provides evidence of timberland and farmland’s resilience through rising interest rate environments and associated contractionary economic environments.

Investing In The Green Economy – The Next Phase Of Growth (FTSE Russell)

For compliance reasons, this paper is only accessible in certain geographies

After a downturn in 2022, the global green economy has returned to form in 2023. Find out what key drivers have been behind this comeback.

Impact Bond Analysis: Global Green Bond Issuance Booms Q2 2023 (ICE)

Global issuance of green bonds reached a record high of US$314 billion in 1H 2023, despite signs of saturation from the leading issuing countries.

Natural Catastrophe Review 2023 (WTW)

Natural hazards only become disasters when they intersect with an inadequately prepared society. Will the green economy of the future be better prepared?

QUANT INVESTING

Investing In U.S. Core Income with Macro and Style Factors (PMR)

Macro and style factors can help investors allocate more efficiently to fixed income, capturing better risk premiums in rates and credit.

Integrating ESG Into Factor Index Solutions (UBS AM)

This analysis shows that historical simulations demonstrate that factor ESG solutions can be considered a good alternative to their traditional counterparts.

The Research and Development Factor (Alpha Architect)

Studies show that R&D expenditures and future stock returns are closely related. Therefore, allocators should also focus on this factor when they look for opportunities.

Carbon Reduction and Active Exposure: U.S. Equity Portfolios (D. E. Shaw Group)

This paper examines emission correlation, style-factor exposure, and portfolio construction as key elements for reducing overall carbon emissions of a portfolio.