All Risk Management articles – Page 9
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White papersBuilding 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 papersMarket 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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White papersPausing 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 papersLow-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 papersMarket 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 papersThe 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 papersMarket 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 papersLiquidity 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 papersIncome 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 papers2021 Outlook: The Uneven Recovery
The recovery in many ways looks real and durable—but it also looks uneven and, in some cases, quite unpredictable. In this discussion, investment professionals from the public and private markets discuss where they expect to see risks and opportunities in the year ahead.
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White papersMarket scenarios and risks - November 2020
This month, we amend the narrative of our central and downside scenario to take into account a larger than expected Covid second wave in Europe and delayed fiscal support in the US. We reduce the probability of our central scenario from 70% to 65% and increase the probability of the downside scenario from 20% to 25%.
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White papersDegrees of Risk
Recognition as a PRI Leader on climate reporting will help us raise awareness of the importance of “Climate Value-at-Risk.”
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White papersLiquidity trends in the wake of Covid-19: implications for portfolio construction
The Covid-19 crisis has triggered the deepest liquidity squeeze since 2008. Unlike the Great Financial Crisis (GFC), an unprecedented real economy shock led to extremely quick deterioration of financial conditions and showed that, under extreme circumstances, liquidity may dry up not only within risk assets, but also within risk free ones.
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White papersHow best to approach climate change risk management?
Chris Wagstaff considers how asset owners might best approach climate change risk management by adopting a number of non-mutually exclusive mitigating actions to address transition and physical risks.
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White papersMarkets scenarios & risks - October 2020
This month, we do not amend the narrative of our central and alternative scenario. Economic data confirm a slower recovery path in line with our central scenario and Central Banks maintain their accommodative stace. We maintain the probability of our central scenario at 70%, 20% for the downside scenario and 10% for the upside.
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White papersGrowth versus Value: Balancing the Risks
Across Europe, measures implemented to contain the Covid-19 pandemic are being gradually lifted. The infection rates on the continent show different dynamics with some exceptions. At the same time, the capital markets are recovering. Therefore, we are currently at the crossroads between crisis and recovery.
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White papersGlobal Convertible Securities: A Strategic Choice For Lower-Volatility Equity Participation
An environment of unprecedented uncertainty has heightened the need for risk-managed investment solutions. Because of their structural features, convertible securities can address a range of strategic investment needs, providing lower-volatility equity market participation or serving as an enhancement to a fixed income portfolio.
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White papersA risk-based approach to harnessing alternative sources of income
The income-generating potential of alternatives seems to be largely underappreciated, despite the trend toward larger allocations to alternative asset classes and the need for yield. Investors can enhance their ability to capitalize on the yield and diversification benefits of alternatives by focusing on the risks that drive returns in each specific segment of the alternatives universe. Executing this, however, is no simple task. If done incorrectly, investors risk negating some of the diversification benefits that make alternatives such valuable contributors to stronger, more resilient portfolios.
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White papersMarkets scenarios & risks - July 2020
We marginally amend the narrative of our central and alternative scenario on the back of recent developments. We also increase
the probability of our central scenario from 50 to 60% while reducing the likelihood of the upside scenario from 30 to 20%.
