Publication
Thematic ETFs: Correct Narrative, wrong prices: A history of attention-grabbing wealth destruction?
Overview Thematic investing has generated significant interest across the investment community in recent years. In tandem, thematic index investing is increasingly making headlines as investors seek passive options that offer the same exposure as an active thematic...
Coolabah Active Composite Bond Fund (Hedge Fund) (CXA: FIXD) August
Key Points: The Coolabah Active Composite Bond Fund (Hedge Fund) (the Fund or FIXD) is an active, fixed-income strategy. It is listed on the CBOE. Its focus is on mispricing in the government and corporate bond markets, with the aim of delivering superior...
Understanding ETF Trading Dynamics: The Role of Market Makers and Bid-Ask Spreads
Overview Unlike equities, ETF trading is heavily influenced by institutional brokers/investors referred to as authorised participants (APs) or market makers. Though these two terms are sometimes used interchangeably, they have distinct functions. APs manage the...
Climate Change Action: How do we invest in it and what do we need to keep in mind?
Source: iStock This blog piece discusses the urgency required for climate change action, as well as how investors can contribute to climate impact through mechanisms of selective capital allocation and shareholder engagement. It explains the frameworks that should be...
How We Should Be Thinking About Carbon Risks in Portfolios
Source: ABC News (2019) Carbon risk data can be useful in highlighting a fund's ESG position, though it is also not wholly encompassing of a fund's carbon impact. This blog post explores the importance of taking a 360-degree perspective on carbon risk analysis in...
Learned Lessons on ESG Investing from the Current Boohoo Slavery Scandal
There has been a strong chorus for sustainable investing in the financial sector, with more than 120 billion Euros poured into across 360 ESG-focused funds in Europe last year, according to data provider Morningstar. However, ESG-focused funds have since highlighted...
Australian Equity Factor Performance During Stressed Markets
The aim of this research paper is to present our analysis of the key drivers (factors) of the Australian share market over the medium-to-long term, as well as during stressed market periods of the current Global Virus Crisis (GVC), the Global Financial Crisis (GFC),...
A Guide to Portfolio Stress Testing.
Using our collective experience across investment management, investment research, data science and risk analytics, we have pulled together this guide for members of the investment community wanting to better understand Stress Testing. The guide is designed to help...
Asset markets price Covid-19 induced recession fast, fear gauge spikes and remains elevated
In this edition of the Cross Asset Review, we assess the past performance of various asset classes and draw implications for multi asset investors. During Q1, investors sold down their growth exposure as concerns about COVID-19 induced global recession took hold....
Global pandemic fears lead to growth asset correction whilst safe haven assets outperform
In this month’s Cross Asset Review, we assess the past performance of various asset classes and draw implications for multi asset investors. During the month of February, investors sold down their growth exposure as concerns about virus-induced global recession took...
GLOBAL FIXED INCOME REPORT
REVIEW OF ASSET ALLOCATION TRENDS, ASSET CLASS AND MANAGER PERFORMANCE Key Points: Institutional allocation to GFI has been rising in recent times. GFI sectors and asset class has done very well over year and decade on the back of falling rates around the world. In...
Bond proxies and Gold outperform on the back rising uncertainty
In this month’s Cross Asset Review, we assess the past performance of various asset classes and its implications for multi asset investors. Bond proxies such as infrastructure and real estate assets were the standout in January 2020 with strong positive return despite...
Outlook for AUD is more balanced, Case for hedging still weak
The continued weakness of the AUD has emerged from heightened policy uncertainty which negatively affected international trade and business investment The data shows AUD’s weakness continued over the past 12 months, mainly against Swiss Franc, Japanese Yen, USD and...
Defensive assets outperformed over the quarter against broad based weak-ness in AUD
In this month’s Cross Asset Review, we look at the performance of various asset classes in September 2019 and what this means for investors. Our analysis shows that investors continued to bid for safe-haven assets such as gold, bond and bond proxy assets in September....
Defensive assets shine on the back of escalating investor fear
In this month’s Cross Asset Review, we look at the performance of various asset classes in August 2019 and what this means for investors. In this edition, we introduce Global and Australian equity volatility indices to track market risk appetite and investor...
Gold and AREITs top the cross-asset performance tables
In this month’s Cross Asset Review produced by Foresight Analytics, we look at the performance of various asset classes in the last Financial Year. Central Bank policy pivot was the single largest factor in our opinion that defined the cross-sectional variation of...
What is the latest allocation structure and preference of the Australian Superannuation funds?
Representing 80% of the $3.6 trillion Australian Managed Fund Industry assets, the Australian Superannuation funds have become highly influential in global capital markets. Their asset allocation trends and preferences have important implications for other asset...
Weak fundamentals and rising geopolitical-trade tensions continue to weigh on AUD
Key Insights AUD index against major trading partners shows a clear negative trend for currency since its peak in 2012. Over the past 12 months, AUD has weakened against most major currencies, the largest weakness was noted against the Yen and Swiss Franc. AUD...
Foresight Global Small Cap Report
Factor Rotations: Evidence from global equity markets
Developed Markets There has been quite a bit of style rotation going on in global markets since 2016. After a strong relative performance from value factors in 2016, growth factors have been the driving force in developed markets so far in 2017. Return premiums have…
Industry Intelligence: Australian Funds Management Industry
Australian funds management industry experienced an increase by $24.5 billion to $1.68 trillion in the first quarter of 2017. Total assets under management for discrete mandates grew significantly, accounting for the biggest share of the market. Meanwhile, the…
Smart beta may not be so smart: risk diversification or risk amplification
Over the last few years, we have witnessed the proliferation of smart-beta and factor-tilting strategies. These strategies can play an important role in portfolios but investors need to understand the nature of risk introduced by these strategies. Our analysis of a…
Global Equity Market Environment Review
Our latest review of the global equity market shows continued leadership from emerging and frontier markets. Eastern European markets such as Bulgaria, Austria and Poland delivered stellar returns in excess of 40% over the past 12 months. From a global sector…
Super Industry Intelligence: ATO regulated SMSFs continue to outpace system growth
Based on the ABS and ATO data-sets, the Australian managed funds industry represented $2.8 trillion assets at 31st March 2017. This was almost 9% higher than the same period last year. Superannuation segment still took the biggest share with asset under management of…