All Risk Management articles – Page 6
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White papers
Market Scenarios and Risks - February 2022
We are marginally adjusting the narrative to take into account the recent economic news flow and the impact of the Omicron variant, but are keeping the probabilities of the scenarios unchanged.
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White papers
Macroeconomic Picture - February 2022
In 2022, the US economy will face a progressive deceleration in economic activity, hovering above trend first and eventually converging to potential in 2023. Activity indicators are pointing to a notable deceleration at the end of Q4 and start of Q1 (in part Covid-related), which we expect to be short-lived.
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White papers
Bolstering Asset Allocation Defenses Against COVID-19
The surge of the coronavirus omicron variant has implications not only for broader asset-class allocations but also for macro exposures within asset classes. We believe that modestly capping exposure to certain COVID-19-sensitive assets can enhance risk management.
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White papers
Why sustainability requires a modern approach to reputation risk management
Reputation and brand have long been understood to be major drivers of a firm’s long-term value – the 2021 UK Reputation Dividend report estimates corporate reputation contributes a third of FTSE-350 market capitalisation.
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Simple Equity Themes for Complex Times
Here’s why we think value and income can offer equity investors both a buffer against uncertainty and an attractive opportunity in an ongoing reflationary expansion.
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Quick Thoughts: Addressing Undiversified Risk
Our Chief Market Strategist, Stephen Dover, and Katrina Dudley, Investment Strategist for Franklin Templeton Mutual Series, discuss diversification risks.
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Banks in the post-Covid-19 world
We thought the banking sector was forever changed by the Global Financial Crisis (GFC): e.g., lower leverage, better risk management, greater transparency, etc.
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White papers
The “great acceleration” intensifies pressure on insurers
While the world is recovering from 2020’s massive shock, it accentuated the challenges facing insurers. There is now greater urgency to adapt business models and portfolios while looking afresh at asset-liability management.
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White papers
Big Tech Stocks: How to gauge regulatory risk
When it comes to America’s biggest technology companies, it seems like regulatory risk has never been higher. Most large technology platforms are facing pressure from US and European authorities, while lawmakers on Capitol Hill seem more inclined to doing something — rather than nothing.
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White papers
Building Short-Term Resilience Into Long-Term Premia
Strategies designed to deliver risk premia over time need help to survive potential potholes and hairpin corners along the way.
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White papers
Market Scenarios and Risks - May 2021
We note progress on the vaccine front despite logistics and side effects issues. In our central scenario, equities outperform on the back of abundant liquidity, improving fundamentals and accommodative monetary policy.
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Pausing for Breath on ‘Peak Growth’
Rates of change in economic data may be hitting their peaks, but that need not preclude more long-term upside for risky assets.
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White papers
Low-volatility investing, here for the long run
A decade ago, after undertaking comprehensive proprietary research into the characteristics of low-risk stocks, we launched our global low-volatility equity strategy.
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White papers
Market Scenarios and Risks - February 2021
This month, we maintain the probabilities and narrative of our central and alternative scenarios. We confirm our constructive medium-term view on the “financial recovery regime”, with more caution in the short-term on financial markets, given the virus-dependent news flow.
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White papers
The Market Measure Of Carbon Risk And Its Impact On The Minimum Variance Portfolio
Like ESG investing, climate change is an important concern for asset managers and owners, and a new challenge for portfolio construction. Until now, investors have mainly measured carbon risk using fundamental approaches, such as with carbon intensity metrics. Nevertheless, it has not been proven that asset prices are directly impacted by these fundamental-based measures.
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White papers
Market Scenarios and Risks - January 2021
This month, we update the probabilities and narrative of our central and alternative scenarios, taking into account 4Q20 developments in vaccinations, fiscal and monetary policies, and (geo)politics. We have a higher conviction on our central scenario and we are raising its probability from 65% to 75%. We are lowering the probability of our downside scenario from 25% to 15%, which remains above historical levels.
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White papers
Liquidity Stress Testing in Asset Management
This article is part of a comprehensive research project on liquidity risk in asset management, which can be divided into three dimensions. The first dimension covers liability liquidity risk (or funding liquidity) modeling, the second dimension focuses on asset liquidity risk (or market liquidity) modeling, and the third dimension considers asset-liability liquidity risk management (or asset-liability matching).
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White papers
Income investing: The return of Goldilocks and the three bears
The Goldilocks environment is back, but bears are lurking in the shadows. Francois de Bruin explores the risks and opportunities that need to be managed to get outcomes that are “just right”.
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White papers
Water disruption: investment risk from multiple angles
We believe water risk must be accounted for in portfolios today, not in 2030 or 2050. But how can this be done? We outline how water is impacting the day-to-day operations of investee companies and what the risks are.