Insights

Insights


Multi-asset style factors: when should they outperform?

Alternative Risk Premia, Multi-Asset Style Factors

5/2020

In this paper, we analyze the performance of three style factors--Carry, Value and Momentum--across time and across different market regimes to address four main questions.

  • How do style factors behave in different phases of the equity market cycle?
  • How sensitive are style factors to volatility conditions?
  • How do style factors respond to changes in interest rates?
  • Any there style factors that are structurally more cyclical or defensive?

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Roads to a low carbon transition

Low Carbon Economy, Responsible Investment

5/2020

In this paper we examine 10 climate-related scenario models to draw conclusions about company-level valuations. These 10 scenarios are based on two main drivers of the low carbon transition: 1) climate policy and regulation; and 2) cost and performance of the technologies designed to reduce emissions. In our analysis, we identify the common characteristics of relative "climate winners" and "climate losers" across all scenarios.

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Insurance investing in a low-forever world

Insurance

2/2020

In this paper we look into the possible drivers for a low-forever interest rate environment and the impact on the balance sheet and business model for insurers. We then discuss three investment related dimensions along which insurers can make adjustments in order to succeed in such an economic environment.

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Oil market risks in the spotlight

1/2020

With heightened US-Iran tensions, Brent crude prices have risen by about 3% to just above $68bbl since January 2, 2020. Perceived safe-haven assets have also rallied with gold prices edging up to levels last seen in 2013. However, prices are still within 2019's $55 - $75 range and equity markets have proven relatively resilient.

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Investment Outlook 2020: the Age of Uncertainty

Macroeconomic

12/2019

2019 has been a year of contrast. On one hand, the narrative of the year in financial markets has been rather pessimistic; trade tensions, policy uncertainty, and recession worries have dominated the news headlines. On the other hand, investment market performance has been impressively strong — right across Fixed Income, Equities, and alternative assets. How the "age of uncertainty" dynamic developed in 2019, and why it still resulted in strong investment market returns, are the first questions we deal with in our Investment Outlook.

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