Month: April 2016

Seven Research Reports you don’t want to miss #7

Here are the seven featured research reports of this week. We accumulated reports with a broad range of interests. NIRP, behavioural finance, China, FX, Endowments and portfolio construction. This and much more can be found on OpinioPro.

  1. In “Is your portfolio ready for turbulence?” Blackrock is making a case for strategies that manage downside volatility. Even at the cost of giving up some gains (less upside in up markets), they have historically been additive.
  2. Is it time to revisit Chinese stocks?. Source is noticing that “there currently seems little enthusiasm for Chinese stocks among either foreign or domestic investors…”. But maybe this signals a buying opportunity?
  3. Research Affiliates explains why “negative rates are dangerous to your wealth”. Because starting yields predict future investment returns, hence negative real interest rates predict negative real returns.
  4. Do you need an update on Behavioural finance? In “from behavioural bias to rational investing” Northern Trust take a look at some biases that can meaningfully affect investment outcomes. But also the counter measures to mitigate these effects are covered.
  5. AXA is making it pretty clear: “Short euro and yen: we shall not surrender”. They note that Euro and yen keep appreciating against the US$ but they (still) believe this trend will reverse because of monetary and fundamental divergences.
  6. This is a nice phrase to start an annual report: “With annual net ten-year investment returns of 10.0%, the Endowment’s performance exceeded its benchmark and outpaced institutional fund indices”. Read all about it in The Yale Endowment 2015
  7. Deutsche Asset Management is taking a look at Negative interest rates and the Economic consequences and side effects in their April CIO View.

Weekly Roundup OpinioPro

The Ascent of Money vs OpinioPro

AscentOfMoneyThe Ascent of Money: A Financial History of the World  is actually a history book. The writer Naill Ferguson is a British historian who specializes in financial and economic history. Issues such as hyperinflation, bond markets and the first shares are discussed elaborately. The book gives a good picture about the role of money over time.

In six chapters, he establishes a link between money and world history. With authority and his British humor, he describes what money means. How it started in the form of gold and coins, until the form it has nowadays: a piece of paper in which we have confidence. The book was published in the credit crisis in 2008, but also bank accounts, stock trading and coming of derivatives are discussed.

Investment professionals benefit greatly from the adage “who does not know his history, will have no future” to delve into the past. But the saying that history repeats itself indicates that the book The Ascent of Money: A Financial History of the World definitely is worth reading, in order to develop a vision for the financial world.

Do you not want to read? In visual form, this book also on YouTube. In 4 hours Naill Furguson leads you through the core of the book.

OpinioPro vs The Ascent of Money: A Financial History of the World

If history is important, then the recent past  is also interesting. Often the first question is how the markets reacted to certain news items. What OpinioPro can offer is how asset managers looked at the various asset classes  last year. The start of OpinioPro in 2015 therefore makes it feasible to go back in time. The database makes it possible to, for example, compare investment research from now to that of last year

The way the opinion towards China is changing in a year is only one topic to compare, in addition, there is a lot more investment research to be found. Likewise the changes in opinion on the topics interest rates, inflation, asset allocation or Quantitative Easing can also be found.

OpinioPro has currently over 2,500 investment research reports on these subjects at its platform. The best ‘research engine’ is now available without registration at www.opiniopro.com

Seven Research Reports you don’t want to miss #6

Here are the seven featured research reports of this week. The unavoidable “Brexit” still features in four of the seven research reports as a major risk factor. Speaking about factors, factor investing is also a popular theme these days.

  1. Schroders is signalling in “Global update: Panic over, what’s next?“ that after a rocky start of the year the tail risks in the markets have eased, but the question remains whether the outlook has brightened. According to hem that depends on whether the outlook for global activity will improve. They expect a steady growth, but nothing spectacular.
  2. Abn Amro is signalling the still lingering political risks in the euro zone. The usual suspects are Greece and Portugal, but also Spain that has to form a new government and of course the Brexit referendum.
  3. In their monthly asset allocation publication “Investment Monthly”, HSBC continues to favour risk assets such as global equities, corporate bonds and high-yield debt relative to developed market (DM) government bonds. However, US equities are now underweighted.
  4. In the Global Investment Outlook Q2 2016 BlackRock takes a look at Q2. Stabilizing growth, a slower pace of rate increases by the U.S. Federal Reserve (Fed) and a pause in the U.S. dollar’s rise bode well for markets in the near term, they believe. Main risks remain a Chinese Yuan devaluation and a Brexit.
  5. In “Brexit update” AXA takes a look at the polls and spread bets. At the time of writing the UK is most likely to remain in the EU. But “…event risk provides the greatest uncertainty to the outcome of the 23 June vote over the coming months…”.
  6. FX Prospect collects all currency exchange rate forecasts drawn up by various parties and processes it to average exchange rate expectations. In the March edition of Consensus FX Forecasts it becomes clear that the Brexit threat has provided for a sizeable drop in GBP; risks remain tilted to the downside into the June 23 referendum.
  7. Lately we see a lot of articles about Factor Investing. The Factor Approach by BlackRock gives a solid introduction to the subject. More Factor reports can be found here.

Weekly Roundup OpinioPro

 

High Performing Investment Teams vs OpinioPro

High Performing Investment Teams is a must for every investor. Of course there are super investors, but often a team is behind these top performances. With the subtitle How to Achieve Best Practices of Top Firms, this book clearly indicates what it is about. Namely, how teams can get optimal performance and successful. The fact that there are five writers related to this theme already indicates this, you often do not get successful on your own.

The heart of the book is to communicate clear and bright. This looks like a cliché, but with the help of  examples from practice the reader is given insights in the different aspects of miscommunication with the means of actual attended meetings. Where the lack of integrity is often referred to as the main source for the credit crisis, which is another component.

The argument is clear: Meetings should be about arguments, not about your opinion. That is what the five authors keep repeating. Support your case with arguments, statistics and remove any trivialising counterarguments to belittle your colleagues or put them in a corner.

If successful teams develop themselves based on the principles of the book High Performing Investment Teams then gaps are not created if a colleague switches to another team. If an asset manager starts to get a high job-hop frequency, then this should be the reason to analyse the culture and see what could be done better.

Finding good arguments to support your own specific case will always be important. It is therefore useful to have a good database, on which every investment case can rely.

 OpinioPro vs High Performing Investment Teams

If it involves Brexit, then OpinioPro is up to date to find arguments. Currently, Brexit is the topic with one of the most publications in the past weeks, but it is also the topic that is read about the most. The large number of publications of known and lesser known parties form a good insight to support your case.

And Brexit is only one subject, but also when it comes to asset allocation, Smart beta or Quantitative Easing, you can find it all at OpinioPro.

OpinioPro has currently over 2,500 investment research reports on these four subjects at its platform. The best ‘research engine’ is now available without registration at www.opiniopro.com

HighPerformingInvesmentTeams