Posts Tagged ‘asset allocation’

Emerging Markets: Finding value through specialists and dynamic management

Are you giving emerging markets the attention they deserve? We believe emerging markets deserve at least as much time and effort as developed market allocations. The longer-term growth projection (in GDP, population and consumption) shows that by 2025, emerging markets may represent over 45% of global consumption.1 Many multi-asset portfolios could benefit from this kind

May 4, 2017 Categories: Market Updates, Markets

The unseen value of active management

When it comes to achieving outcomes, I believe that there is no purely passive approach. We all need to be active investors in some way. We all make choices, saying yes to some market exposures and investment strategies and no to others. That’s why, at Russell Investments, we believe in both active and passive approaches—as part of a multi-asset investment solution to help achieve desired

Mar 23, 2017 Categories: Multi-asset

Multi-asset investing: Wizard of Odds

In probability theory the Kelly criterion is a way to decide the optimal size of a series of bets. It was discovered by a physicist named Kelly who figured out the idea when he was working in telecommunications research at Bell Labs in the 1950s. Kelly figured out the formula which showed the optimal amount

Nov 25, 2016 Categories: Investment, Market Updates

Crystal ball revealed: what does the future hold for equity investors if this time is not different?

In my last blog I argued that even long-term equity investors are not always rewarded for the risk they are taking. It all boils down to the price they pay for stocks. With hindsight the best time to buy is when everyone rushes to the door and the worst time is when everyone scrambles to

Jun 11, 2015 Categories: Investment Strategy, Markets

One step forward, two steps back – How pension funding plans are evolving

Earlier this month, The Pensions Regulator published its annual analysis of defined benefit scheme funding and recovery plans. It’s no news that funding levels continue to be hammered by falling yields, and that many recovery plans have been blown off course as a consequence – but in this analysis we can begin to see how

May 28, 2015 Categories: Investment Strategy

Equity risk without a premium?

My last blog considered a range of plausible return outcomes for a multi-asset fund over the next 10 years and argued that a repetition of the bull run of the last 10 years requires a very constructive view on the equity premium. This premium is what economists Lubos Pastor and Robert Staunbaugh back in 2001

May 21, 2015 Categories: Investment Strategy, Markets

Asset allocation: What if I have to start from here?

In my last blog I examined the importance of starting valuations for subsequent investment returns. It was fun to imagine we could pick and choose our investment scenarios, but it is time to stop pretending that a time machine is available. Sadly we can’t turn the clock back to the happy days of the end

Mar 11, 2015 Categories: Investment Strategy, Markets

Asset allocation: I wouldn’t start from here!

A local Irish man once told a visitor “If I were going there I wouldn’t start from here”. Financial advisers these days must be tempted to give the same advice to their clients. If we were able to choose the starting point of our long-term investment decisions I think everyone would be very careful to

Mar 6, 2015 Categories: Investment Strategy, Markets

The big questions in asset allocation: tough challenges and realistic answers

A famous Danish physicist once said “Prediction is very difficult, especially if it’s about the future”. This is very true of capital markets where forecasting the future direction of yields and prices is extremely challenging. Even so-called investment gurus often get them spectacularly wrong. In January 2010 Pimco founder Bill Gross famously said “The UK

Feb 26, 2015 Categories: Investment Strategy, Markets

Diversification: weathering the storms

Everyone has experienced it. One minute the sun is shining and the sky is blue, and the next, great big storm clouds have gathered overhead and you are caught in a torrential downpour (usually on the days you left the house without an umbrella!). In a similar way, every pension trustee board faces storms too,

Jul 10, 2014 Categories: Investment Strategy


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