All Returns articles
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White papersSustainable dividends: The pursuit of quality and prudence
With the fight against inflation still under way amid the banking turmoil, dividend-income investment opportunities could grow in importance and play a significant role in total return. In this interview, Aline Avzaradel, portfolio manager of the Capital Group Capital Income Builder strategy, explains her focus towards dividend sustainability, as well as the need to avoid dividend cutters, which can undermine a portfolio’s long-term return potential.
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White papersEquity-bond correlations: was 2022 an outlier?
Should we be shocked? Negative equity and bond returns in 2022 provided further evidence that annual performance by the asset classes is not as uncorrelated as commonly believed. How frequently do these so-called ‘outlier’ years occur, and how can investors with long-beta portfolios be better prepared?
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White papersWhy timberland now?
The case for investing in timberland now and for the long term rests on the asset class’s compelling combination of potential financial and environmental benefits.
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White papersEvidence of the low volatility anomaly
It is relatively easy to demonstrate the low volatility anomaly – the phenomenon that first came to light half a century ago showing that investing in higher risk equities is not necessarily rewarded with higher returns. Raul Leote de Carvalho explains.
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White papersIPM – Edition December 2022
3Q22 was a challenging one for private markets. Spreads between risk-free rates have narrowed or even reversed, leverage costs have soared and the economic outlook has weakened further. In this environment, it is crucial existing portfolios are positioned against some of the headwinds we know are coming next year.
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White papersAsset Class Returns Forecasts - Q4 2022
We reiterate the main driver affecting the current and forward-looking macro environments is a combination of sustained inflation, mounting recession fears and geopolitical developments. Price stability has become the paramount goal and even more complicated to reach, therefore CBs will make sure high inflation will not be entrenched in economic agents’ long-term expectations.
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White papersHow do institutions segment their investment universe?
In the first papers of this series, we addressed the issues of how institutional investors should set their investment objectives – a key element of any Investment Policy Statement (IPS) – and how to articulate their asset allocation across different horizons.
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White papersAccessing CLOs: risk, return and liquidity considerations
Outlines how to access and invest in the CLO market Compares open-end vs. closed-end CLO fund structures and single-manager and multimanager CLO approaches
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White papersSDG Engagement Equity Fund 2022 H1 Report
The Federated Hermes SDG Engagement Equity Fund has the dual purpose of delivering attractive returns and measurable real-world impact.
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White papersReal assets in focus: What does the data say? Our monthly data-inspired series
In this month’s instalment of our visual series on topical themes, we look at some of the key recent trends in the real asset universe.
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White papersThe Case for Unconstrained Multi-Asset Portfolios: Navigating the Challenges of Public-Private Investing
As investors navigate the challenges of integrating public and private markets we believe a single, unconstrained multi-asset portfolio can deliver a more efficient and opportunistic solution.
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White papersEuropean Real Estate Debt: Why Now?
Against a backdrop of decades-high inflation and rising rates, real estate debt is worth considering—especially given the potential for attractive returns, duration risk mitigation, and diversification.
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White papersAccelerated Migration Post-Pandemic Drives Real Estate Returns - Q2 2022
The onset of the COVID-19 pandemic largely accelerated many location changes that began before March 2020. Nationwide, some migratory patterns related to American industry and demographic shifts became more pronounced by type of region, metro, and location − some areas experienced unprecedented booms, while others reported sizeable declines.
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White papersSwitching Gears for an Uphill Ride: Combining Capital Preservation, Return Potential and Liquidity for Official Institutions
In the second of our articles on working with Official Institutions, we ask whether portfolios can be built to withstand a profoundly changed outlook for the economy and investment returns without blowing through their risk constraints.
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White papersCredit Factor Investing with Machine Learning techniques
The most common models to assess asset returns are a linear combination of risk factors. We have employed tree-based machine learning algorithms to capture nonlinearities and detect interaction effects among risk factors in the EUR and USD credit space. We have built a nonlinear credit pricing model and compared it to our baseline linear credit pricing model using error metrics on training and testing sets and during different periods.
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White papersAsset Class Return Forecasts - Q2 2022
The continuing surging inflation due to the supply shocks and the Ukrainian conflict have dominated headlines compounding to the possible repercussions surrounding climate change, further affecting economic and financial indicators in the medium term and beyond.
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White papersPrivate assets: returns, diversification, and sustainability
Change is a powerful force in the world of investment. The long-term changes we face now can best be represented by the powerful themes underlying the Age of Transformation: climate change, demographics, and innovation. However, we are also in the midst of shorter-term changes that can have huge repercussions on our investment choices: inflation, an energy shock, tighter monetary policy, to name a few.
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White papersResilience and Transition: Infrastructure Outlook
As major investors of pension capital, we see a number of emerging investment opportunities that can generate positive returns while contributing to the resilience of infrastructure assets that working people rely on every day.
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White papersAsset Classes Views: Keeping up with climate change
The third year of the Covid crisis began with renewed concerns over the interplay between surging inflation and an economic recovery contingent on concerns over policy tightening, a trend further accelerated by the Russian-Ukrainian conflict.
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White papersNon-traditional property types are no longer niche – they are the future of commercial real estate
REITs have spearheaded the growth of real estate investors into non-traditional property types. The U.S. institutional private real estate market is also rapidly expanding into these property types and we anticipate a material allocation to non-traditional properties in the future.
