The use of a four-state probability model can more accurately predict stock market phases and improve investment and risk management decisions, said Tom McCurdy, professor of finance and Bonham chair in international finance at the University of Toronto’s Rotman School of Management, during the Canadian Investment Review’s 2022 Risk Management Conference. The proposed model incorporates […]
Despite the low-yield environment, fixed income continues to play an important role for institutional investors looking to make their portfolios work harder in a risk-controlled fashion, said Jeffrey Moore, a portfolio manager at Fidelity Investments Inc., during a session at the Canadian Investment Review’s 2021 Global Investment Conference. “For the bond market to hurt, there needs […]
As much as institutional investors fear stock market bubbles, they have an important role to play. The flooding of capital into new technologies and innovations leading up to a bubble’s bursting fuels innovation — an area that most corporations do not invest enough in, said Randall Morck, a finance professor at the University of Alberta, […]
A rally on the stock market in the fourth quarter helped boost the strength of Canadian defined benefit pension plans to end the year, a report by Mercer Canada said Monday. The consulting firm said its pension health index, which represents the solvency ratio of a hypothetical defined benefit pension plan, rose to 114 per […]
Despite this year’s extreme volatility, the past ten years have been an extraordinary time to be an equity investor. This can be seen by looking at the so-called equity risk premium, which is simply the difference between returns on global stock markets and risk-free assets, such as U.S. dollar bank deposits. Over the very long […]
With U.S. stock prices exceeding pre-coronavirus highs and credit spreads nearly as tight as before the pandemic, investors are signalling overconfidence in the market, says Rob Almeida, portfolio manager and global investment strategist at MFS Investment Management. While polls and betting odds appear to be favouring a Joe Biden win, that doesn’t align with what […]
During the coronavirus market crash, U.S. stocks with higher institutional ownership experienced worse performance, especially those held by active, short-term and domestic institutions, according to a recent paper. Institutional ownership of U.S. stocks has risen to massive levels, comprising 75 per cent of stock ownership overall, noted the paper by researchers at the University of […]
When it comes to emerging markets equities, it’s important to look for compounders that will create value over time, says Andrew Miller, chief investment officer for emerging markets equities at Mondrian Investment Partners Ltd. “Obviously, all of us that operate in the stock market and invest in the stock market, whether you’re a fund manager […]
More than half (61 per cent) of institutional investors think equities are peaking as 2019 gets rolling, according to research from Preqin. This number has been on the rise during the past 18 months, potentially hinting markets are due for a correction, the report noted. “It’s no surprise that this is throwing the role of […]
Institutional investors should anticipate next year to be one of increasing volatility.