State of the Art of Investing: Issue 12
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 complete guide to factor-based investing
- Institutional Investor Journal special issue on factor investing (registration required)
- Fundamental drivers, not industry classification, make companies "peers"
The effect of the low/negative interest rate environment
- Are T-bond futures facing a long dry spell?
The effects of pension funding shortfalls
- Governance separates the strong from the weak pension plans
- Pension trustees are human (and thus subject to behavioral biases)
- A trifecta of headwinds
- Is the funding ratio a misleading statistic?
- The megatrend that will define the next 40 years
Increasing allocations to alternative investments
- How have allocations to alternatives affected pension risk and return?
The importance of understanding financial market history
- What can we learn from MF Global's collapse?
- Lessons from the Amaranth debacle
- Financial crises: Lessons from history
- A History of the United States in Five Crashes
The role of ESG factors in investing
- China's green finance market
- ESG screens matter (a little)
- Are ESG issues really just long-term operational business risks?
The increasing need for private wealth management
The rise of passive vs. active investing
- Active managers are on a hot streak.
The need for investment professionals with soft skills
- Time tested techniques for gaining influence
The role of "big data" and Fintech in the investment process
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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