Quantitative investing has taken a battering during the global financial crisis, with many big firms suffering lower-than-average performance for much of the past two years. But the stuff that gave quants a compelling story before investor behavioural biases – is now helping them again.
What’s the role of an asset consultant post crisis?
Asset consultants have recently started offering medium-term asset allocation advice, often as a separately priced service.
Watson Wyatt Worldwide calls it “dynamic strategic asset allocation”. Russell Investments calls it “enhanced asset allocation”. Whatever the term, the advice sits between tactical asset allocation at the short end and strategic asset allocation at the long.
Diversification – based investing – the new balanced
Not withstanding the effect, for investors, of globalisation, country and sector bets still drive the performance of global equity portfolios. And research shows that whole countries tend to stray from fair value for a lot longer than individual stocks do. Deutsche Asset Management has produced a paper on ‘Diversification-Based Investing’, which leads one to think … Read more
QIA buys agribusiness, but not land, to feed Qatar
A food company owned by the $65 billion Qatar Investment Authority (QIA) has launched a joint venture in Sudan as part of its strategy to generate profit and secure food supply by investing in overseas agricultural businesses.
What the world needs now: greater surveillance on exchange rates
The world needs to move back to a rules-based system of oversight over currencies and enhanced global surveillance of national macroeconomic policies, according to a leading Professor of Economics at the University of Oxford, UK.
ING the latest to hive off funds management
Another big bank is set to hive off its funds management business to shore up its balance sheet, with this week’s announcement of the proposed divestments by ING Group.
