Asset Allocation: No Longer One Size Fits All (2014)
This paper highlights the latest investment themes pursued by four investor groups that account for around 80% of assets in the global investment universe:
• Defined benefits (DB) plans
• Defined contribution (DC) plans
• Retail investors
• High net worth investors (HNWI)
There is one common theme that runs across all four investor groups. Other characteristics are specific to individual groups. Accordingly, this paper first highlights the common theme; it then singles out the investor- specific themes. The data used to develop the themes emanate from the CREATE-Research 2012 and 2014 surveys.
Investing in a High-Frequency Trading Environment (2014)
Two unintended practices have recently evolved to create an uneven playing field in the Trading Environment.
One is HFT, which deploys high-speed computer algorithms to create a microsecond trading advantage. The other is so-called dark pools, which use electronic networks to enable investors to do block trades anonymously.
Both have their virtues. Used in excess, however, these are turning into vices.
Accordingly, this special report pursues two issues:
• What are the key forces that investors see as detrimental to the efficiency of financial markets today?
• As a result, how are their investment behaviours changing?
These questions were covered in the 2014 Principal Global Investors/CREATE-Research Annual Survey, involving 704 pension plans, sovereign wealth funds, insurance companies, asset managers and fund distributors in 30 counties. Of these, 68 were institutional investors collectively managing assets worth $5.9 trillion.
During the fieldwork of the survey, the topic of the impacts of HFT was a priority issue, hence the focus of this report.
Buy and hold, or trade in and out? (2014)
"With turmoil persisting, do big institutions treat emerging market assets as buy and hold investments or opportunistic bets?"
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Portfolio Construction in Australia (2013)
"Politics more than economics will drive the markets over rest of this decade"
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The 300 Club - Death Of Common Sense (2012)
The 2008 market crash was the outcome of a complex set of factors. One of them was modern portfolio theory which fostered the belief that markets are always right and mean reversion towards fundamental values is the norm.
This faulty thinking had profound impact on investor psyche and policy thinking. Its time to develop fresh thinking on how markets really work and highlight the issues that really matter to today's investors.
Leadership in the Age of Dilemmas (2010)
Leaders face acute dilemmas as they seek to reconcile the diverse aspirations of their organisations.
Leaders need numerous qualities to cope. This report outlines those qualities and how to prepare leaders to face such dilemmas.
This report is a transcript of the Inaugural Lecture given to Prudential Corporation in London UK, on 17 April 2002, but is still equally valid today.