Climate Change – UpdateThis Review updates the Climate Change Review of 2013(10), summarizing a number of climate change articles, all dating back to November 2015 and onwards – reflecting the large amount of information written on this topic. We begin with a summary under Climate Change Readings from publications: “Bloomberg”, “The Economist”, “The Globe and Mail”, and the ICD Directors Journal” plus an article about Al Gore in “The Atlantic”. We have also included very good Website References kindly provided by friends at Ontario Teachers, as done last time. The articles generally have links and these are provided wherever available so the reader can follow-up on the full story. We then conclude with Investment Implications as we did in the previous Review. Membership Required.
Liability Driven Investing (LDI) – UpdateThis Review follows two earlier Reviews on this topic written in 2013(3) and 2014(4), and provides a further update on bond information plus detailed summary of LDI returns of what is called a “dual-portfolio” or “two-fund” approach to LDI investing. We present a background by Barton Waring on the two-fund approach, discuss liability duration in terms of real and nominal rates, cover the latest funding status of Canadian pension plans, provide about 60 years of LDI returns plus Fed tightening, and before concluding, we add a number of alternatives to bonds in LDI strategies. We conclude with a detailed outlook for two-fund LDI returns, given today’s very low interest rates. While we overall quite commend the use of LDI strategies over the past 34 years, i.e., since rates peaked in 1981, we suggest that pension funds may be better off today modifying their LDI strategies. Membership Required.
2015 Review and OutlookThis Review and Outlook of the year 2015 and 2016 -as we did last year - is based on three annual year-end publications; “BloombergBusinessweek”,“TheEconomist”,and“Fortune”. Webrieflysummarizeanumberofarticlesfromeachmagazine, along with a link for each magazine. “Bloomberg” covers he global outlook plus several other areas. “The Economist” is quite extensive with a wide array of topic. And “Fortune” covers very well significant number of business and investment topics. I personally applaud all three publications for their very good articles and hope our readership finds these useful. Membership Required.
Long-Term InvestingIn this Review we discuss the concept of “Long-Term Investing” with the great help of two very notable authorities in this area – Mark Wiseman, President and CEO of the Canada Pension Plan Investment Board) and Charles Brandes, Founder and Chairman of Brandes Investment Partners – Mark Wiseman being a very significant pension fund manager and Charles Brandes being also very significant as a fund manager. We very much appreciate their comments and contribution to this Review. We also include several other writers on this topic which support the beliefs and practices of these two. Membership Required.
Big data TechnologyThe concept of Big data and Technology was first introduced in our 2013(7) Review of Al Gore’s book entitled “The Future: Six Drivers of Global Change in a chapter entitled: “The Global Mind – The Digital Age and Influence of the Internet” – a summary of which we include here as an Appendix. In this Review we begin with a discussion purely about Big Data and then follow up with Data Centre Software and Cloud Computing, Robotics and Drones, and finally Technology’s Economic Implications. Overall, big data and technology has and will continue to have a huge impact on what we do, how we do things, and its economic impact. Membership Required.
Active Share“Active share” is a subject made famous by Martijin Cremers and Antti Petajisto of Yale in their original 2009 study, and followed - up in two 2013 studies. It has grown significantly in use and importance in active investment management. The application of the concept has been expanded from mainly large cap to include medium and small cap. In this Review we sum up the original papers on Active Share plus recent ones, including one which questions some of the original premises, followed by a reply by the original author Petajisto. Our overall conclusion is in support of the concept of Active Share and in agreement with the original work of Cremers and Petajisto. Membership Required.
Environmental, Social, and Governance (ESG)This is a Review of the topic Environmental, Social, and Governance (ESG). Recent changes by the Province of Ontario have required ESG be included in all Ontario Plan SIPPs. Plan sponsors are not required to include ESG factors in their investment strategy, but they must state in the SIPP whether or not ESG factors are considered in investment decisions, and if so, how. We have include a very good discussion on ESG by Debora Ng of Ontario Teachers’ Pension Plan, plus we discuss a recent article on how ESG following has grown significantly. Membership Required.
Updates on Previous Review TopicsThis Review provides some recent update information on five previous Review topics, these being: Private Equity Returns, US Small Cap, Risk Premiums, Breakeven Rates on Bonds, and Asset Mix vs. Security Selection. There are various reasons for updating these topics including new information plus simply discussing current status. We have done several update reviews in the past and we hope these updates are helpful to our subscribers and as always, we welcome any comments or suggestions. Membership Required.
01 Jun2015Membership Required.