Content (49)

  • Coronavirus Update - Market Risk of Epidemics

    White papers

    Coronavirus Update: Market Risk of Epidemics

    2020-01-30T11:11:00Z

    Investors face a new risk management challenge with the coronavirus. Past epidemics may shed some light on what could happen next. 

  • Capital Market Assumptions - 5 Year Outlook

    White papers

    Capital Market Assumptions - 5 Year Outlook

    2020-01-21T10:57:00Z

    Every year, Northern Trust’s Capital Market Assumptions Working Group develops forward-looking, historically aware forecasts for global economic activity and financial market returns that drive our five-year asset class return expectations and inform our asset allocation decisions. All of this comes together in the form of our long-term strategic asset allocations, which are used by institutional and individual investors worldwide.

  • 2020 Outlook - Everything In Moderation

    White papers

    2020 Outlook: Everything In Moderation

    2020-01-21T10:31:00Z

    We think 2020 will be another year of slow growth — durable enough to avoid recession but disappointing to those looking for improvement. The combination of moderate growth and technological innovation will continue to suppress inflation, bolstering the global central bank easing cycle underway.  This leaves us continuing to favor “lower-risk risk assets” such as U.S. equities and high-yield bonds.

  • Simple sustainable investing solutions may not work for bond investing

    White papers

    Simple sustainable investing solutions may not work for bond investing

    2020-01-09T13:00:00Z

    Combining sustainable investing and fixed income has the potential to deliver attractive long-term returns while delivering positive change. However, there are risks with doing so in a naïve way.

  • Bringing Sustainable Investing to the Bottom Line

    White papers

    Bringing Sustainable Investing to the Bottom Line

    2019-11-11T11:42:00Z

    By integrating ESG factors into their portfolios, investors are increasingly recognizing they can go beyond conventional financial criteria and invest in companies whose emphasis on corporate citizenship matches their own values. Yet even the staunchest proponent of sustainable investing acknowledges the importance of financial criteria. How, specifically, can we combine traditional and ESG research to achieve investment objectives surrounding risk, return and ESG performance?

  • Factor Profile: Quality

    White papers

    Factor Profile: Quality

    2019-10-09T10:25:00Z

    Quality Investment strategies are often focused on identifying companies that have a sustainable competitive advantage and / or have generated consistent shareholder value over time.

  • Share Buybacks or Composite Equity Insurance

    White papers

    Share Buybacks or Composite Equity Issuance?

    2019-10-09T10:05:00Z

    Even though factor investing is widely supported in academia and investment practice, forecasting and harvesting factor returns remains challenging for various reasons. One signal that has received more than a little attention of late is share buybacks.

  • Time to Refresh What Value Means

    White papers

    Factor Profile: Value

    2019-10-09T09:43:00Z

    While select equity factors have historically outperformed the broad equity market over the past 50 years, investors should be careful about assuming that what has worked to identify the right factors in the past will work in the future. The value factor is a good example. As technology and service companies become a larger part of the global economy, the traditional and simpler value metrics don’t work as well. Here is what investors can do.

  • Factor Profile: Momentum

    White papers

    Factor Profile: Momentum

    2019-10-09T09:30:00Z

    The momentum factor can provide alpha and diversification, but it can also be redundant because a significant proportion of the momentum premium stems from momentum in other factors. This is commonly referred to as factor momentum and can unintentionally lead to a doubling down on factor exposure and risks in multi-factor portfolios. Skilful risk management of factors is critical to avoiding this mistake. 

  • Where Factors Come From

    White papers

    Where Factors Come From

    2019-08-07T14:08:00Z

    A select group of equity factors — value, small size, momentum, low volatility, dividend yield, and quality — has been the primary source of equity outperformance over the broad equity market for five decades.

  • Time to Refresh What Value Means

    White papers

    Time to Refresh What Value Means

    2019-08-07T13:55:00Z

    While select equity factors have historically outperformed the broad equity market over the past 50 years, investors should be careful about assuming that what has worked to identify the right factors in the past will work in the future.

  • Handle the Momentum Factor with Care

    White papers

    Handle the Momentum Factor with Care

    2019-08-07T13:42:00Z

    The momentum factor can provide alpha and diversification, but it can also be redundant because a significant proportion of the momentum premium stems from momentum in other factors.