State of the Art of Investing: Issue 11
Links to Topics of Increasing Interest to Investment Professionals
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
- More investors than ever believe bonds are overvalued
The effects of pension funding shortfalls
Increasing allocations to alternative investments
The importance of understanding financial market history
The role of ESG factors in investing
- How ESG standards underpin investment analysis
The increasing need for private wealth management
- Tech and wealth management: Transformative or disruptive?
The rise of passive vs. active investing
- Portfolio concentration and its impact on performance
- The flight to passive is making it even harder for active managers
- The active equity renaissance
- How much of the shift to passive is really just a mirage?
- Without real evidence of outperformance, why choose active management?
- Active managers can win if they stick to core principles.
The need for investment professionals with soft skills
The role of "big data" and Fintech in the investment process
- Regtech helps global financial firms deal with fragmented regulatory regimes
- Automated investing systems should be held to the fiduciary standard
- A curated list of AI and machine learning resources
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?
Photo by htmvalerio