Building better core:Integrating factors in low tracking error equity portfolios
Institutional investors are increasingly searching for new ways to add value to equity portfolios, without taking on unnecessary risk.
Curious how we create a balanced combination of factors aimed at consistently outperforming a benchmark with controlled tracking error?
You are invited to join Michael Strating (Head of the Quantitative Equities team) and Wilma de Groot (Portfolio Manager Quantitative Equities) who will discuss how low tracking error multi-factor approach can add value, without affecting your risk budget.
RecordedJul 7 201652 mins
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Francis Condon and Christopher Greenwald, UBS Asset Management; Brendan Maton, IPE
As the need intensifies for the world to transition to a low-carbon economy, we look at the ways in which aligning to the 2 degree global warming scenario can provide investors with opportunities. In particular, we will explore the benefits of adopting a low cost, rules-based approach to integrating climate risk, with a focus on:
• Incorporating a forward looking approach aligned to forward-looking carbon reduction targets
• The use of qualitative and quantitative factors to tilt exposures towards those companies more likely to follow the 2 degree reduction scenario and away from those likely to track the 6 degree scenario
• The role of an active engagement and proxy voting policy to drive positive climate change action
- Christopher Greenwald, PhD, MBA: Head of Sustainable and Impact Investing Research and Stewardship, Executive Director, UBS Asset Management
- Francis Condon, M.Phil: Sustainable and Impact Investing Research Analyst, Executive Director, UBS Asset Management
Armit Bhambra, Head of UK Retirement, iShares by BlackRock; Maya Beyhan, Investment Strategist, Kempen; Brendan Maton, IPE
Since 2009, ETF assets have increased from c.$1trn to above $4trn today*. As AUM has increased, so too has the volume traded over exchanges, which has the direct impact of reducing transaction costs versus trading in the primary markets. This changing landscape requires a more holistic view of costs.
In this webinar, we focus on ETFs and when and why it maybe more cost efficient to use an ETF instead of an alternative wrapper. We will look at the Total Cost of Ownership (TCO) framework and how it can help drive cost efficiencies for your Pension Fund, for both ETFs and IMFs. It also enables you to evaluate the most cost-efficient vehicle and gives you a better reflection of true costs.
We will discuss how you can make cost efficiencies for your pension fund and address the following key questions:
· What are the cost benefits of ETFs?
· How will it fit within our current pension fund portfolio?
· What is the Total Cost Ownership (TCO) framework?
· How does TCO differ to the traditional cost analysis model for mutual funds?
· Should I consider ETFs as a key investment strategy for our pension fund?
· ETFs have been on the rise for the last few decades, will the trend continue?
· What is the key strategy to achieving a strong return and cost-efficiencies?
* Source: Kempen Capital Management, as of July 2018
Mark Austin, Head of UK Institutional Investor Group; Stuart Lawson, Alternatives Global Product Manager, Northern Trust
As institutional investors /pension schemes boost their exposure to alternative assets at transformational levels, they are exploring a variety of ways to access the investments. An evolving approach is to venture beyond the investor role by entering the realm of the asset manager and establishing their own investment vehicles.
This can offer advantages such as full alignment to their requirements and greater control. Yet it also requires a high level of in-house expertise and operational considerations.
The webcast will:
• Examine the drivers and challenges for investment in alternative assets
• Explore the changing relationship between ‘LPs’ and ‘GPs’
• Outline key considerations for direct investment
- Mark Austin, Head of UK Institutional Investor Group, Northern Trust
- Stuart Lawson, Alternatives Global Product Manager, Northern Trust
Alex Morozov, CFA, Dir. of European Equity Research, Morningstar; Philipp Schlegel, Managing Director, Van Eck Switzerland AG
"Competitive advantages drive superior performances"
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• An intuitive combination of quality and value.
• How the power of Economic Moats can impact your portfolio.
• VanEck’s approach to accessing US Equities with a MOAT advantage.
WHY MOATS MATTER
Just as moats around a castle kept the enemy at bay, Economic Moats protect the high returns on capital enjoyed by the world’s best companies. Morningstar’s concept derives from legendary investor Warren Buffet who introduced the idea of the sustainable competitive advantage.
• MOAT focus on quality U.S. companies that Morningstar believes possess sustainable competitive advantages, or “moats”.
• Morningstar’s equity research process is supported by over 100 analysts who cover over 1,500 stocks globally and seeks to identify economic moats.
• Morningstar’s fair value research allows each index to target companies trading at attractive prices to avoid overpaying for quality, moat-rated companies.
• Alex Morozov, CFA, Director of European Equity Research, Morningstar
• Philipp Schlegel, Managing Director, Van Eck Switzerland AG
• Brendan Maton, IPE
For Financial Professionals Only.This content originates from VanEck Investments Limited (“VanEck”) and does not constitute an offer to sell or solicitation to buy any security. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.
Brian D. Singer, CFA, Partner, Head of the Dynamic Allocation Strategies Team, William Blair; Brendan Maton, IPE
Easy monetary policies across the globe have unleashed a troop of 800-pound gorillas to harass capital markets, and in doing so, have created unintended risks—and significant opportunities.
Get insights on this and three other compounding issues that have heightened concerns of a market disruption, and learn how to navigate this environment and pursue resulting opportunities.
In this webinar, Brian Singer, CFA, head of William Blair’s Dynamic Allocation Strategies Team, will discuss:
How the current market environment is interesting but not unique
• 1980s: Black Monday
• 1990s: Dot-com bubble
• 2000s: Global Financial Crisis
• Today: Different book, same story (final chapter hasn’t been written yet)
How the story keeps getting repeated
• Monetary stimulus
• High asset prices
• Low volatility
• Systematic over fundamental
• Reckoning at the end
Why the troop of 800-pound gorillas (global central banks) and compounding issues may exacerbate a market downturn
• Global quantitative easing
• Rules-based strategies
• The Volcker Rule
• Circuit breakers
Why it’s important to be aware and where opportunities may emerge
• Positioning portfolios to step into opportunities
René Kassis - Managing Director, Head of Private Debt, La Banque Postale Asset Management; Brendan Maton, IPE
In the current low-rate environment, the search for yield has led investors to alternative fixed income categories. Besides investments like mortgage loans and asset-backed securities, infrastructure debt offers institutional investors various advantages. Being a less liquid investment, investors in infrastructure debt receive an attractive illiquidity premium. On top of that, this asset class offers diversification benefits within a fixed income strategy, historically low default rates, high recovery rates and low capital charges under Solvency II.
At present, more than half of all infrastructure projects relate to the renewable energy transition. Infrastructure debt is about assets that provide essential public services such as transport, energy, healthcare, utilities and telecom infrastructure. This also includes companies that tackle environmental problems, e.g. water treatment and minimizing energy wastage. In the long term, these assets generate predictable and stable cash flows and contribute to a more sustainable world.
René Kassis, Managing Director, Head of Private Debt at La Banque Postale Asset Management will tell you more about this.
DISCLAIMER: Professional investors located in the following countries can sign in for the webcast: Netherlands; Belgium; Luxemburg, Germany; UK; Austria; Switzerland; Norway; Sweden; Finland; Denmark; Italy, Spain and France
Lorna Brown, Robin Martin and Tom Sumpster, LGIM Real Assets; Brendan Maton, IPE
The interest in growing Real Asset exposures in portfolios has boomed in recent years. But with an asset class that encompasses a range of Real Estate and Infrastructure sectors, and different shades of debt and equity, investors are faced with many options.
Tune in to this webcast to hear LGIM's market experts Lorna Brown, Head of Real Estate Debt, Rob Martin, Real Assets Research Director and Tom Sumpster, Head of Infrastructure Finance talk about the different roles the asset class can play in meeting investors’ objectives.
IPE’s Brendan Maton, will be quizzing Lorna, Rob and Tom on:
• How investors should be thinking about allocating to Real Assets
• The current market environment in the UK
• Which areas of the market look most interesting now
• What are the risks that investors need to consider
Lorna Brown - Head of Real Estate Debt, LGIM Real Assets
Robin Martin - Director of Research, LGIM Real Assets
Tom Sumpster - Head of Infrastructure Finance, LGIM Real Assets
Paul Woolman and David Gibbs, CME; Brendan Maton, IPE
Market participants around the world – from major institutional investor to active individual trader – use futures and ETFs to gain access to benchmark equity index exposure. These two instrument types are typically preferred for their liquidity, pricing, and ease of trading, relative to the alternatives.
Take a deeper dive with David Gibbs and Paul Woolman as they walk through different scenarios to help uncover the optimal solution for different trading strategies.
Join our experts for an interactive webinar that will address the differences between futures and ETFs across these five key factors:
• Cost comparison of expenses that affect the total cost between futures and ETFs
• Liquidity analysis across several US benchmark equity futures and ETFs
• Capital efficiencies and benefits of margin offsets in futures vs the fully funded nature of ETFs
• Operational efficiencies, such as opportunities for currency exposure, UCITS eligibility and managing the roll
• Tax considerations and applications for futures and ETFs
• David Gibbs, Director of Market Development and Education at CME Group
• Paul Woolman, Senior Director, Equity and Alternative Index Products group and Head of EMEA, CME Group
Mark Carver and George Bonne, MSCI; Brendan Maton, IPE
Factors have historically been identified as critical drivers of portfolio risk and return and can now be used to better inform the investment process and provide insight into market performance.
Join our webcast to learn about MSCI’s latest factor research and how it can be applied to understanding recent market events. We will also examine how multi-factor strategies can provide core portfolio diversification.
In this webcast we will:
- Look at the current market dynamics through the lens of Factors
- Introduce MSCI’s latest research on factor influence on recent market events
- Analyze multiple-factor strategies and the power of diversification
- Mark Carver - Executive Director, Global Head of Factor Indexes, MSCI
- George Bonne, PhD, PRM - Executive Director, Equity Factor Research, MSCI
- Brendan Maton, IPE
Larry Antonatos, a Portfolio Manager on the Real Assets Solutions team for Brookfield’s Public Securities Group, explores how investors can reap the rewards of both public and private real assets by combining them within a single hybrid portfolio. By diversifying the drivers of risk and return, the potential investment benefits of this hybrid approach are:
- Enhanced risk-adjusted returns
- Dynamic asset allocation of public securities
- Strategic diversification of private funds
Please join us for a discussion on the underlying characteristics and risk/return profile of a public/private real assets portfolio along with an analysis of the “illiquidity premium” attributed to private funds.
Presented by: Larry Antonatos – Portfolio Manager, Brookfield’s Public Securities Group
Moderated by: Brendan Maton, IPE
Pauline Fiastre, Senior PM, Infrastructure Debt & Philippe Deloffre, Head of Real Estate Debt at BNP Paribas Asset Management
Real Asset financing is becoming increasingly popular. This is not surprising given the diversification benefits they bring and the sustainable, inflation-beating investment returns they can deliver.
Tune in to this webcast to hear Pauline Fiastre, Senior Portfolio Manager, Infrastructure Debt and Philippe Deloffre, Head of Real Estate Debt at BNP Paribas Asset Management, talk about why Real Assets are an important component of an investment portfolio.
IPE’s Brendan Maton, will be quizzing Pauline and Philippe on:
- Size and scope of the real asset debt market
- Current market environment across Europe
- Why these illiquid alternatives can offer stable and predictable cash-flow
- The risk profile of these asset classes
- How ESG can be a defining factor in selecting quality assets
Mark Austin, Northern Trust; Aaron Overy, Northern Trust Asset Management; Sonia Gogna, Aon
Pension investment costs and charges: Towards greater transparency
Trustees and pension fund executives increasingly need to understand the full cost of managing their investments to enable them to determine if they are receiving value for money. Yet many find it difficult to obtain the information required to complete this analysis. As pension investment costs and charges come increasingly to the fore of industry debate, this webcast will provide ideas for those seeking to gain deeper insight into schemes’ investment costs and charges.
The webcast will:
• Discuss recent industry developments and initiatives aimed at encouraging greater transparency over investment costs
• Outline key areas that trustees can assess when hiring or changing their investment managers
• Highlight the costs associated with certain types of transactions and less commonly known investment-related activity
• Mark Austin, Head of UK Institutional Investor Group, Northern Trust
• Aaron Overy, Director of Business Development, Northern Trust Asset Management
• Sonia Gogna, Head of Large Client Solutions, Aon
Gregg McClymont, Head of Retirement & Leandros Kalisperas, Global Head of Pensions Solutions, Aberdeen Standard Investments
Retirement is one of the biggest public policy challenges of this century. The global shift to defined contribution pensions reduces government and employer liabilities but can it deliver good outcomes for individuals carrying the investment risk?
Towards a new pensions settlement the international experience vols. I & II is a research project in which subject expert academics examine transitions to funded DC pensions in global comparative context.
Gregg McClymont & Leandros Kalisperas will discuss the emerging dos and don’ts of DC design based on evidence from across Europe, Asia, and the Americas in this webcast.
· Mandatory or quasi mandatory enrolment
· Pension funds with scale
· Fiduciary governance
· Default investment pathways
· Expecting individuals-to-act-as-engaged-consumers
· Ongoing or early access to savings
· Using pensions systems to achieve non pensions objectives
· Expecting DC savings to replace state pensions
A webcast for all those interested in understanding the international drivers for success in pension design in the 2020s and beyond.
Gregg McClymont, Head of Retirement, Aberdeen Standard Investments
Leandros Kalisperas, Global Head of Pensions Solutions, Aberdeen Standard Investments
Liam Kennedy, Editor, Editor, Investment & Pensions Europe
Felix Goltz, Head of Applied Research at EDHEC-Risk Institute, and Director of Research at ERI Scientific Beta
In this webinar, we will explore whether dynamic factor allocation can create value for investors. We will examine whether factor-based tactical allocation approaches are easy to implement and see how to account for cyclicality and conditionality of betas and premia in the context of factor investing solutions. We will present a case study of dynamic market beta adjustment and dynamic premia diversification of solutions to improve the conditionality of the performance of multi-factor strategies.
- Felix Goltz, Head of Applied Research at EDHEC-Risk Institute, and Director of Research at ERI Scientific Beta
- Brendan Maton, IPE
Dimitris Melas, Mark Carver, MSCI; Brendan Maton, IPE
Factor Investing is transforming the way investors construct and manage portfolios. Join our webcast to learn about the evolution from Style Investing to Factor Investing taking place today. MSCI’s latest Factor innovation, MSCI FaCS and Factor Box provide the framework and standard for evaluating, implementing and reporting Factor allocations.
In this webcast we will:
• Introduce MSCI FaCS and MSCI Factor Box
• Demonstrate how to analyze your portfolio, compare fund to fund or funds to benchmarks and report fund or style characteristics using MSCI FaCS
- Dimitris Melas, Global Head of Core Equity Research, MSCI
- Mark Carver, Executive Director, Americas Head of Factor Index Products, MSCI
Andrew Marks and Jason White, Artisan Partners; Brendan Maton, IPE
As the bull market enters its 10th year and valuations continue climbing across most market sectors, investors naturally begin to question where future growth may come from.
Artisan Partners Growth Team is focused on identifying high-quality franchises that are on the cusp of or in the early stages of compelling profit cycles—wherever they may occur.
As the market cycle matures, the team’s process becomes even more critical to identifying opportunities for accelerating profit growth.
The Growth team’s Jason White, lead portfolio manager for the recently launched Artisan Global Discovery Strategy, will discuss where the team is finding compelling opportunities, even against the backdrop of a maturing bull market.
Andrew Marks is a managing director of Artisan Partners UK and head of Europe, Middle East and Africa (EMEA) Distribution.
Jason L. White, CFA, is a managing director of Artisan Partners and a portfolio manager on the Growth team
Dan Carson, Head of Green Solutions, FTSE Russell; Brendan Maton, IPE
As sustainable investing moves into the mainstream of institutional investing many investors may be unsure why this once niche strand of portfolio construction has risen so rapidly in the rankings of investor consideration. Is it driven by values, global policy, or is it really about a pure investment rationale; enhancing returns and minimising risk? Or a mixture of all three?
Join Dan Carson, Head of Green Solutions at FTSE Russell as he seeks to elaborate on some of the issues and drivers that have led to the increased popularity of sustainable investing; explaining why green taxonomies are important and how FTSE Russell’s Green Revenues data model can help asset owners identify the companies that are engaged in the global transition to a green economy.
Dan will go on to demonstrate how Green Revenues data is used within index construction and how asset owners have successfully used sustainability data and smart beta to build index solutions that eloquently combine risk premia with varying degrees of sustainable preference or parameters.
- Dan Carson, Head of Green Solutions, FTSE Russell
- Brendan Maton, IPE
Jeppe Ladekarl, Allyson Pellissier & Paul Goldwhite, First Quadrant; Brendan Maton, IPE
Equity markets may be showing signs of vulnerability after experiencing a strong rally in stocks across some parts of the globe. With inflation concerns and rising rates weighing on fixed income assets, investors are wary of turning to this traditional source for return and diversification. Commonly used alternatives to these traditional beta sources come with their own challenges such as complexity, liquidity, lack of transparency and, in some cases, potentially stretched valuations.
In this webcast, we offer a liquid and transparent approach to generating returns, especially during times of market stress. Please join Jeppe Ladekarl, Paul Goldwhite and Allyson Pellissier from our Macro Investment team, as they discuss how an allocation to macro may improve your portfolio's risk-adjusted return profile and why currency can be an effective medium for expressing macro views and delivering returns when investors need them most.
Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.
- Jeppe Ladekarl: Partner, Investments, First Quadrant
- Allyson Pellissier, PhD: Associate, Investments, First Quadrant
- Paul Goldwhite, CFA: Director, Investments, First Quadrant
Eric Shirbini, Global Research and Investment Solutions Director, ERI Scientific Beta; Brendan Maton, IPE
Long/short factor strategies allow well-documented factor premia to be harvested and hedging out market risk effectively cancels a major source of risk. Market-neutral factor strategies can be useful additions to portfolios with strong market exposure due to low correlation with directional market risk. In this webcast, Eric Shirbini, PhD, Global Research and Investment Solutions Director with ERI Scientific Beta, will explore the following points:
• The challenges of a robust performance approach in the case of long/short multi-factor strategies
• Improving factor spreads without sacrificing performance stability: the challenge of allocating between factors adapted to long/short strategies
• How to ensure real market neutrality of long/short factor strategies
• The importance of investability of long/short strategies in factor investing
Willem Verhagen, Marcelo Assalin and Gabriella Kindert, NN Investment Partners; Brendan Maton, IPE
Should global growth and interest rates move durably higher, professional fixed income investors will need to reassess their course and look for short duration and specialized solutions. During this webcast NN Investment Partners sets out two growth scenarios and their impact on a wide range of fixed income assets. NN Investment Partners will focus on two interesting asset classes that yield compelling returns for those willing to look for them:
• Future growth scenario’s and their impact on fixed income asset classes
• Hidden EMD opportunities: Frontier Market Debt and Local Currency
• Stay afloat in a rising rate environment with Alternative Credit solutions
• Willem Verhagen, senior Investment Strategist, NN Investment Partners
• Marcelo Assalin, Head of Emerging Market Debt, NN Investment Partners
• Gabriella Kindert, Head of Alternative Credit, NN Investment Partners
This webcast channel is for pension funds and other institutional investment professionals in Europe, the USA and Asia. It is particularly relevant for pension fund executives, trustees, consultants and investment managers. IPE will be bringing its community live interviews with leading figures in the market, hosting roundtable discussions on specific topics such as asset allocation and also sharing latest thought-leadership from investment experts.
Building better core:Integrating factors in low tracking error equity portfoliosMichael Strating, Managing Director, Head of Quantitative Equities; Wilma de Groot, CFA, Director, Portfolio Manager; Robeco[[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]]51 mins