White Papers

Disequilibrium: Assessing the impact of the shift downwards in the equilibrium interest rate

October 2015

In this GIS Whitepaper, Tracey McNaughton, CFA, Head of Investment Strategy Australia and Michele Gambera, CFA, PhD, Head of Quantitative Analysis, GIS, examine the relevance to investors of the long-term equilibrium interest rate – a theoretical concept that has tended in the past to be of concern to academics only.

The investment drought: How can the problem of weak investment be fixed?

September 2015

This whitepaper explores the perceived investment deficit – driven by the reluctance of investors, governments and companies all over the world to engage in long-term investment - which comes at a cost of slower economic growth. It addresses some of the causes of the recent investment malaise, and proposes potential solutions.

Risk aware investment

May 2015

Integrating risk management into the multi-asset investment process helps in the construction of portfolios that are better tailored to clients' needs. This paper provides an in-depth overview of how Global Investment Solutions (GIS) manages portfolio risk – a core element of our investment process.

Managing inflation risk in defined contribution plans

March 2013

The paper looks at the tools Defined contribution (DC) plan sponsors can use to help their participants manage inflation risks.

Investing in 2013

November 2012

Investing in 2013

Is our flagship annual publication surveying the world in the upcoming year for investors, covering both cyclical and long-term themes. This year, topics include the future of the eurozone, new reserve currencies, the bleak outlook for pension plans, the end of the commodities super cycle, and the impact of the US fiscal cliff on global economic growth.

Strategic Investment Advisory – Americas

November 2012

Are voluntary contributions right for your corporate pension plan?

In a new white paper, the Asset Liability Investment Solutions team argues that despite lower minimum required contributions for many corporate pension plans, this could be a compelling time for corporations to use voluntary contributions to strengthen their plan’s funded status, while potentially receiving an attractive return on investment compared with other uses of capital.

NB THIS IS FOR PROFESSIONAL INVESTORS ONLY (INCLUDING CONSULTANTS)

White Paper

February 2012

Annuities as an asset class

The Defined Contribution Solutions team analyze annuities as a set of cash flows similar to a coupon bond. They argue that, for most participants in defined contribution pension plans, the decision for annuities should not be a binary one (0% or 100% annuities) but a question of diversification: How much of annuity should be purchased, and the strategy should be for building up the targeted allocation.

NB THIS IS FOR PROFESSIONAL INVESTORS ONLY (INCLUDING CONSULTANTS)

Strategic Investment Advisory – Americas

August 2011

Pension risk management: The discipline needed to protect contributions

Francois Pellerin, head of Asset Liability Investment Solutions, analyzes the impact of contributions made to US corporate pension plans, and dispels a common misconception that market performance is the main determinant of funded status. He also highlights the importance of protecting contributions through pension risk management and discusses how funded status may drive a plan sponsor's actions.

NB THIS IS FOR PROFESSIONAL INVESTORS ONLY (INCLUDING CONSULTANTS)

White Paper

March 2011

Hedge Fund Risk Modelling: Linking hedge fund and traditional asset risk

More and more investors hold hedge funds as an integral part of their overall portfolio, and growing numbers of multi-asset products include an allocation to hedge funds. These developments call for a consistent way of integrating hedge funds in an overall portfolio. A new model that achieves that objective is presented in this paper by Vincent Couson, head of strategic investment solutions, and Sa Lu, analyst. such as equities, fixed income or commodities.

NB THIS IS FOR PROFESSIONAL INVESTORS ONLY (INCLUDING CONSULTANTS)

Global Investment Solutions - Topical paper

December 2010

The European Single Currency: growing pains or structural flaws?

The integrity of the Eurozone and the feasibility of Europe's single currency are being seriously called into question. Ongoing tensions in the Eurozone financial markets are viewed by many as evidence that the single currency project is fundamentally flawed. Some economists argue that the peripheral European countries whose deficits have exploded cannot survive within the single currency area. Others argue that core Eurozone members like Germany will not want to remain in a currency system that could drag their own economies down.