State of the Art of Investing: Issue 14
13 Trends Significantly Impacting the Investment Profession (and current links to relevant information on them)
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. The 2017 practice analysis identified 13 trends likely to have a significant impact on the investment profession over the next three years. As I advance my own knowledge of these trends 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.)
The impact of regulation on investment decision making
- Do nudges work?
The role of "big data" in financial analysis
The effects of the low/negative interest rate environment
The effects of pension funding shortfalls
- Connecticut only off by $40 billion on their liability estimate
- "Employers aren't in the retirement business"
- The megatrend that will define the next 40 years
The use of robo-advisors in private wealth management
- Beyond fintech: Disruptive potential in financial services
- How many of your clients are rational?
- Investors should focus on the things they can control
Increased global demand for alternative investments
Risk factor asset allocation approaches
- Fama says stick to basic factors
- Factor-based investing for pension funds
- The complete guide to factor-based investing
The need for investment managers with fintech skills
The need for investment managers with soft skills
- Know why you do what you do
- Help your clients deal with their emotions
- Time tested techniques for gaining influence
"Smart Beta" strategies
- Live results seldom live up to the backtests
- Investors have some unrealistic expectations for index funds
Greater demand for active investment management
The role of ESG factors in investing
The importance of understanding financial market history
Anything else I should be reading?
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