State of the Art of Investing: Issue 3
Benjamin Graham once said that the true investment professional would "develop a more professional attitude towards his work and a keener interest in maintaining and advancing the standards of his calling." Those standards continue to advance, as most investment professionals can attest.
To keep the CFA program current and relevant, CFA Institute continuously interviews investment management practitioners, employers and regulators through its practice analysis. Recent trends identified include:
Risk factor based asset allocation
The effect of the low/negative interest rate environment
The effects of pension funding shortfalls
- The four horsemen of pension destruction
- How liquidity and capital constraints affect asset allocations
Increasing allocations to alternative investments
- Should there be less regulatory oversight of Private Equity firms?
The importance of understanding financial market history
The role of ESG factors in investing
- Lies financial advisors tell
- Gaining momentum for ESG
- The 6 types of institutions that integrate ESG decisions
- For investment managers, poor governance could be an existential threat
- Why the fiduciary rule should be fully implemented
- Do accounting standards still play a governance role?
- Will new revenue recognition rules allow earnings manipulation?
- ESG investing can deliver outperformance
- Or, it neither hurts nor helps
- The math says ESG investing shouldn't outperform but would still serve its purpose
- Standards and Advocacy monthly briefing from CFA Institute
The increasing need for private wealth management
- The 2nd Annual India Wealth Management Conference
- The safe retirement withdrawal strategy could be suboptimal
The rise of passive vs. active investing
- The debate
- Why shooting par may be the most winning investment strategy
- How alpha becomes beta
- The impact from smart beta
The need for investment professionals with soft skills
- How to create a client-oriented culture
- Ask questions instead of giving direct orders
- Let others save face
- The message, the mission, and the messenger
The role of "big data" and Fintech in the investment process
- AI applications in investment management
- The latest news on Fintech for financial advisors
- Are robots any good at value investing?
These seem like good places to start, and as I advance my own knowledge I will try to share links to interesting resources in posts like this one. Opinions expressed are mine, not those of CFA Institute. Whether you find them useful or can suggest improvement, please let me know (both so I can learn more and so I can make these posts more useful to others.)
Anything else I should be reading?
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