This document discusses the importance of building investment portfolios without relying solely on skill or chasing past performance. It argues that investors' main needs are excess returns above benchmarks like inflation that are achieved at an acceptable cost and risk level. The document shows that long-term portfolio returns of over 15% can be achieved through simple diversification without relying on manager skill. It advocates using risk factors like value and size rather than chasing top-performing funds, and focusing on reducing costs and risks within core passive holdings. The conclusion is that wealth accumulation comes from portfolio efficiency rather than chasing skill.
Risk Parity, a relatively new portfolio construction method, took Wall Street by storm overcoming the traditional mean-variance and 60/40 methods. Why this method is better and when?
Combining the Best Stock Selection Factors by Patrick O'Shaughnessy at QuantC...Quantopian
Patrick will explore how to combine the value factor with other stock selection factors to build a superior stock selection strategy. He will discuss unique ways of using momentum, share buybacks, and quality factors to improve on a simple value screen. He will discuss portfolio concentration, rebalancing, and risk management. He will also explain why the best versions of these strategies are only possible for smaller firms and investors.
"Is Momentum Still Relevant for Today’s Markets?" by Anthony Ng, Senior LecturerQuantopian
Presented at QuantCon Singapore 2016, Quantopian's quantitative finance and algorithmic trading conference, November 11th.
Despite being ‘discovered’ over 20 years ago, there is still confusion on what a momentum strategy entails and people ‘invest in momentum’. There are two generally accepted definitions of momentum in academic literature. In the quantitative equity investment sphere, momentum is frequently referred to as across securities or assets (cross-sectional or relative) and typically traded in a long-short or hedged manner. In futures trading, momentum is often referred to the past return of the security (time-series) and normally traded in a directional fashion.
Following from the above, we conducted an analysis on the performance of a momentum strategy of different asset classes: equity, fixed income, futures, and currencies. The study showed that both types of momentum are prevalent and persistent across all asset classes. Furthermore, as the correlations between the two types of momentum strategies and amongst the asset classes are quite low, substantial diversification benefit can be derived by combining them.
"Snake Oil, Swamp Land, and Factor-Based Investing" by Gary Antonacci, author...Quantopian
BlackRock forecasts smart beta investing oriented toward size, value, quality, momentum, and low volatility to reach $1 trillion by 2020 and $2.4 trillion by 2025. Gary’s talk will show that this growth may not be justified due to these factors' lack of robustness, consistency, persistence, intuitiveness, and investability. Gary will also show that the success attributed to these factors would be better directed toward macro momentum and the short interest ratio.
Deep Value and the Aquirer's Multiple by Tobias Carlisle for QuantCon 2016Quantopian
How to beat The Little Book That Beats The Market: An exploration of the deep value investment strategy. This talk will combines engaging anecdotes with industry research to illustrate the principles and reasoning behind a counterintuitive investment strategy.
netwealth educational webinar - The evolution of asset allocationnetwealthInvest
On April 14, 2016 Tracey McNaughton, Head of Investment Strategy at UBS presented to financial advisers on the evolution of asset allocation during a netwealth educational webinar.
"Maximize Alpha with Systematic Factor Testing" by Cheng Peng, Software Engin...Quantopian
Factor modeling and style premia are historically well documented and extensively researched in generating abnormal returns. Despite the large amount of research around factors, there is less clarity around effectively capturing and extracting this alpha from a given universe. In this presentation, Cheng will demonstrate different techniques for combining multiple factors, and the rationale behind maximizing alpha while maintaining scalability.
Risk Parity, a relatively new portfolio construction method, took Wall Street by storm overcoming the traditional mean-variance and 60/40 methods. Why this method is better and when?
Combining the Best Stock Selection Factors by Patrick O'Shaughnessy at QuantC...Quantopian
Patrick will explore how to combine the value factor with other stock selection factors to build a superior stock selection strategy. He will discuss unique ways of using momentum, share buybacks, and quality factors to improve on a simple value screen. He will discuss portfolio concentration, rebalancing, and risk management. He will also explain why the best versions of these strategies are only possible for smaller firms and investors.
"Is Momentum Still Relevant for Today’s Markets?" by Anthony Ng, Senior LecturerQuantopian
Presented at QuantCon Singapore 2016, Quantopian's quantitative finance and algorithmic trading conference, November 11th.
Despite being ‘discovered’ over 20 years ago, there is still confusion on what a momentum strategy entails and people ‘invest in momentum’. There are two generally accepted definitions of momentum in academic literature. In the quantitative equity investment sphere, momentum is frequently referred to as across securities or assets (cross-sectional or relative) and typically traded in a long-short or hedged manner. In futures trading, momentum is often referred to the past return of the security (time-series) and normally traded in a directional fashion.
Following from the above, we conducted an analysis on the performance of a momentum strategy of different asset classes: equity, fixed income, futures, and currencies. The study showed that both types of momentum are prevalent and persistent across all asset classes. Furthermore, as the correlations between the two types of momentum strategies and amongst the asset classes are quite low, substantial diversification benefit can be derived by combining them.
"Snake Oil, Swamp Land, and Factor-Based Investing" by Gary Antonacci, author...Quantopian
BlackRock forecasts smart beta investing oriented toward size, value, quality, momentum, and low volatility to reach $1 trillion by 2020 and $2.4 trillion by 2025. Gary’s talk will show that this growth may not be justified due to these factors' lack of robustness, consistency, persistence, intuitiveness, and investability. Gary will also show that the success attributed to these factors would be better directed toward macro momentum and the short interest ratio.
Deep Value and the Aquirer's Multiple by Tobias Carlisle for QuantCon 2016Quantopian
How to beat The Little Book That Beats The Market: An exploration of the deep value investment strategy. This talk will combines engaging anecdotes with industry research to illustrate the principles and reasoning behind a counterintuitive investment strategy.
netwealth educational webinar - The evolution of asset allocationnetwealthInvest
On April 14, 2016 Tracey McNaughton, Head of Investment Strategy at UBS presented to financial advisers on the evolution of asset allocation during a netwealth educational webinar.
"Maximize Alpha with Systematic Factor Testing" by Cheng Peng, Software Engin...Quantopian
Factor modeling and style premia are historically well documented and extensively researched in generating abnormal returns. Despite the large amount of research around factors, there is less clarity around effectively capturing and extracting this alpha from a given universe. In this presentation, Cheng will demonstrate different techniques for combining multiple factors, and the rationale behind maximizing alpha while maintaining scalability.
Trade Like a Chimp: Unleash Your Inner Primate by Andreas Clenow at QuantCon ...Quantopian
It is a long established fact that a reasonably well behaved chimp throwing darts at a list of stocks can outperform most professional asset managers. It is less known why this is the case. While there would be obvious advantages with hiring chimps over hedge fund traders, such as lower salaries and calmer tempers, there are also a few practical obstacles to such hiring practices. For those asset management firms unable to retain the services of a cooperative primate, a random number generator may serve as a reasonable approximation of their skills.
The fact of the matter is that even a random number generator can, and will, outperform practically all mutual funds. Such random strategies may seem like a joke, and perhaps they are, but if a joke can outperform industry professionals we have to stop and ask some hard questions.
When designing investment strategies, it can be very useful to have an understanding of random strategies, how they work and what kind of results they are likely to yield. Given that random strategies perform quite well over time, they can act as a valid benchmark. After all, if your own investment approach fails to outperform a random strategy, you may as well outsource your quant modeling to the Bronx Zoo.
Financial analysts are concerned with factors, or common sources of risk that contribute to changes in asset prices. Analysts may be able to control a portfolio’s risk more efficiently and perhaps even improve its returns by identifying such factors.
Factor analysis is a powerful tool for quantifying the risk profile of a portfolio, constructing a portfolio relative to a benchmark, and controlling risk.
Asset Allocation in a Low Interest Rate WorldWindham Labs
Constructing a well-diversified portfolio has become increasingly difficult in recent years. Central Banks around the world have influenced asset prices and driven down interest rates. The Capital Asset Pricing Model (CAPM), Modern Portfolio Theory (MPT), and global diversification have been under attack. The distortion in interest rates and the instability of risk have made generating model inputs challenging.
In this presentation, we discuss an approach to constructing portfolios in this "New World."
Market Risk And Return PowerPoint Presentation Slides SlideTeam
Presenting this set of slides with name - Market Risk And Return Powerpoint Presentation Slides. Our topic specific Market Risk And Return Powerpoint Presentation Slides presentation deck contains twenty eight slides to formulate the topic with a sound understanding. This PPT deck is what you can bank upon. With diverse and professional slides at your side, worry the least for a powerpack presentation. A range of editable and ready to use slides with all sorts of relevant charts and graphs, overviews, topics subtopics templates, and analysis templates makes it all the more worth. This deck displays creative and professional looking slides of all sorts. Whether you are a member of an assigned team or a designated official on the look out for impacting slides, it caters to every professional field.
"From Alpha Discovery to Portfolio Construction: Pitfalls and Solutions" by D...Quantopian
From QuantCon 2017: Implementation is the efficient translation of alpha research into portfolios. It includes portfolio construction and trading. It is a vital step in the quant equity workflow, as poor implementation can ruin even the best alpha ideas. Two crucial challenges must be solved: how to construct a portfolio that most efficiently captures a given alpha signal; and, in the presence of multiple signals, how to optimally combine them into a single composite alpha factor.
This talk addresses these challenges, examines common pitfalls in the implementation of quantitative strategies and good practices to avoid them. A common theme is striking the right balance between factor signal purity and investability. We look at how factor models and optimisation techniques help professional investors answer three key questions:
· What risks should your risk model be cognisant of?
· What objective function should you use?
· What effect do investability constraints have on your portfolio?
In this presentation, we review methods and best practices for the portfolio construction and evaluation process. The presentation covers risk and return estimation, mean-variance optimization as well as techniques for analyzing exposure to loss and wealth potential.
On 1/26/2017, we hosted a webinar featuring Richard Lindsey, Managing Partner and Head of Liquid Alternative Strategies at Windham Capital Management. Rich discussed how to model portfolio returns, risk premia, and how to decompose portfolio risk.
"Opportunities and Pitfalls in Momentum Investing" by Gary Antonacci, Author ...Quantopian
Presented at QuantCon Singapore 2016, Quantopian's quantitative finance and algorithmic trading conference, November 11th.
Gary will begin by explaining the origins and history of momentum investing. He will show why momentum is called “the premier anomaly.” He will describe the way momentum is most commonly used and why this may not be the best approach. He will discuss the hidden risks associated with momentum and other factor based investments.
Using easily understood examples and historical research findings, he will show how relative strength momentum can enhance investment returns, while trend-following absolute momentum can dramatically decrease risk exposure.
Gary will show which assets are best to use for momentum investing. Finally, he will describe the behavioral biases you must deal with and the mind set you need to become a successful momentum investor.
In this talk you will learn how to:
a) Spot the best momentum investment opportunities in any market environment.
b) Protect yourself from bear market risk exposure and behavioral biases.
c) Construct your own low-cost, rules-based dual momentum portfolio that is simple to understand and easy to maintain.
Dual Momentum Investing by Gary Antonacci QuantCon 2016Quantopian
Gary will begin by reviewing the most common investment vehicles throughout history while explaining their advantages and disadvantages. He will then show how momentum can help accentuate the positives and eliminate the negatives. Using easily understood examples and historical research findings, Gary will show how relative strength momentum can enhance investment return, while trend-following absolute momentum can dramatically decrease bear market exposure. Finally, Gary will show how you can implement and easily maintain your very own dual momentum portfolio using the best assets classes.
Mark Weetman, Vunani Private Clients, introduces you to his Autopilot Retirement Blueprint where he covers retirement life stages and investing using passive ETFs
A recent Fidelity (2014) study reports that, among 12.5 million DC participants, 41% of those between ages of 20 and 39 cashed out part or all of their DC assets when switching jobs, incurring tax penalties along the way.
Trade Like a Chimp: Unleash Your Inner Primate by Andreas Clenow at QuantCon ...Quantopian
It is a long established fact that a reasonably well behaved chimp throwing darts at a list of stocks can outperform most professional asset managers. It is less known why this is the case. While there would be obvious advantages with hiring chimps over hedge fund traders, such as lower salaries and calmer tempers, there are also a few practical obstacles to such hiring practices. For those asset management firms unable to retain the services of a cooperative primate, a random number generator may serve as a reasonable approximation of their skills.
The fact of the matter is that even a random number generator can, and will, outperform practically all mutual funds. Such random strategies may seem like a joke, and perhaps they are, but if a joke can outperform industry professionals we have to stop and ask some hard questions.
When designing investment strategies, it can be very useful to have an understanding of random strategies, how they work and what kind of results they are likely to yield. Given that random strategies perform quite well over time, they can act as a valid benchmark. After all, if your own investment approach fails to outperform a random strategy, you may as well outsource your quant modeling to the Bronx Zoo.
Financial analysts are concerned with factors, or common sources of risk that contribute to changes in asset prices. Analysts may be able to control a portfolio’s risk more efficiently and perhaps even improve its returns by identifying such factors.
Factor analysis is a powerful tool for quantifying the risk profile of a portfolio, constructing a portfolio relative to a benchmark, and controlling risk.
Asset Allocation in a Low Interest Rate WorldWindham Labs
Constructing a well-diversified portfolio has become increasingly difficult in recent years. Central Banks around the world have influenced asset prices and driven down interest rates. The Capital Asset Pricing Model (CAPM), Modern Portfolio Theory (MPT), and global diversification have been under attack. The distortion in interest rates and the instability of risk have made generating model inputs challenging.
In this presentation, we discuss an approach to constructing portfolios in this "New World."
Market Risk And Return PowerPoint Presentation Slides SlideTeam
Presenting this set of slides with name - Market Risk And Return Powerpoint Presentation Slides. Our topic specific Market Risk And Return Powerpoint Presentation Slides presentation deck contains twenty eight slides to formulate the topic with a sound understanding. This PPT deck is what you can bank upon. With diverse and professional slides at your side, worry the least for a powerpack presentation. A range of editable and ready to use slides with all sorts of relevant charts and graphs, overviews, topics subtopics templates, and analysis templates makes it all the more worth. This deck displays creative and professional looking slides of all sorts. Whether you are a member of an assigned team or a designated official on the look out for impacting slides, it caters to every professional field.
"From Alpha Discovery to Portfolio Construction: Pitfalls and Solutions" by D...Quantopian
From QuantCon 2017: Implementation is the efficient translation of alpha research into portfolios. It includes portfolio construction and trading. It is a vital step in the quant equity workflow, as poor implementation can ruin even the best alpha ideas. Two crucial challenges must be solved: how to construct a portfolio that most efficiently captures a given alpha signal; and, in the presence of multiple signals, how to optimally combine them into a single composite alpha factor.
This talk addresses these challenges, examines common pitfalls in the implementation of quantitative strategies and good practices to avoid them. A common theme is striking the right balance between factor signal purity and investability. We look at how factor models and optimisation techniques help professional investors answer three key questions:
· What risks should your risk model be cognisant of?
· What objective function should you use?
· What effect do investability constraints have on your portfolio?
In this presentation, we review methods and best practices for the portfolio construction and evaluation process. The presentation covers risk and return estimation, mean-variance optimization as well as techniques for analyzing exposure to loss and wealth potential.
On 1/26/2017, we hosted a webinar featuring Richard Lindsey, Managing Partner and Head of Liquid Alternative Strategies at Windham Capital Management. Rich discussed how to model portfolio returns, risk premia, and how to decompose portfolio risk.
"Opportunities and Pitfalls in Momentum Investing" by Gary Antonacci, Author ...Quantopian
Presented at QuantCon Singapore 2016, Quantopian's quantitative finance and algorithmic trading conference, November 11th.
Gary will begin by explaining the origins and history of momentum investing. He will show why momentum is called “the premier anomaly.” He will describe the way momentum is most commonly used and why this may not be the best approach. He will discuss the hidden risks associated with momentum and other factor based investments.
Using easily understood examples and historical research findings, he will show how relative strength momentum can enhance investment returns, while trend-following absolute momentum can dramatically decrease risk exposure.
Gary will show which assets are best to use for momentum investing. Finally, he will describe the behavioral biases you must deal with and the mind set you need to become a successful momentum investor.
In this talk you will learn how to:
a) Spot the best momentum investment opportunities in any market environment.
b) Protect yourself from bear market risk exposure and behavioral biases.
c) Construct your own low-cost, rules-based dual momentum portfolio that is simple to understand and easy to maintain.
Dual Momentum Investing by Gary Antonacci QuantCon 2016Quantopian
Gary will begin by reviewing the most common investment vehicles throughout history while explaining their advantages and disadvantages. He will then show how momentum can help accentuate the positives and eliminate the negatives. Using easily understood examples and historical research findings, Gary will show how relative strength momentum can enhance investment return, while trend-following absolute momentum can dramatically decrease bear market exposure. Finally, Gary will show how you can implement and easily maintain your very own dual momentum portfolio using the best assets classes.
Mark Weetman, Vunani Private Clients, introduces you to his Autopilot Retirement Blueprint where he covers retirement life stages and investing using passive ETFs
A recent Fidelity (2014) study reports that, among 12.5 million DC participants, 41% of those between ages of 20 and 39 cashed out part or all of their DC assets when switching jobs, incurring tax penalties along the way.
Chaos Cruncher is the most advanced iteration of an automatic trading system designed, developed and used by Quant Trade. As our leading trading system, we have devised a way to offer it to our clients as a system service, in our Commodity Trading Advisor, or as a desktop application.
World Currency Markets: A True Alternative InvestmentCurrensee
Currensee CEO Dave Lemont's presentation from the Traders Expo in New York City. Dave lays out the landscape of alternative investing and introduces the Currensee Trade Leaders Investment Program.
Can the public outperform Warren Buffett? Our research shows exactly how using 10 years of data. We simplify the approach so anyone can easily follow it, and how we did it ourselves.
Swallow Financial Planning's presentation to clients explaining our investment strategy and our approach to investing for the long term.
The presentation briefly covers:
- why we believe in asset-backed investments;
- why asset classes perform differently;
- why we believe it’s essential to diversify your investments;
- why risk and reward are always related;
- why risk reduces over the long term and;
- why we prefer passive funds.
- A financial portfolio optimization model in Python, where investments are made in various assets (stocks, bonds, index funds) using the Mean absolute Deviation Markowitz model.
- Applied to real time data obtained for a period of over 24-months.
- Final Product: We have created an interactive decision support system which allows a user to choose an acceptable risk level, total investment amount, and re-balancing intervals.
- A graphical representations of investment and portfolio health is shown.
Beating Buffett - Become a world class fund manager with softwareAlpesh Patel
Welcome to the software which outperformed the world's best investor. Fintech which makes you a world class fund manager. See www.trading-champions.com to learn by looking over the shoulder of an award winning fund manager.
Dimensional Fund Advisors' powerful slides on the small cap and value effect detail how small stocks and value stocks enhance portfolio returns and explain portfolio performance.
This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with fourty five slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Contribution PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...
Senate group; Why skill is never enough - November 2013
1. Why
Chasing Skill
is Never Enough!
How to build better investment portfolios without skill
Roland Rousseau
Quantitative Portfolio Construction Research
Roland Rousseau – Portfolio Construction Research – November 2013
1
2. What do Investors Really, Really Need?
Do we need skill-based performance?
Investors need a return that covers or exceeds their opportunity cost of not investing
They need an excess return (e.g. above inflation, benchmark, liabilities etc)
They need a positive return after costs
They need a return without excessive ‘risk’
Excess
Return
Acceptable
Costs
Value
for Money
Is skill-based performance
Necessary and Sufficient to
achieve your investment goals?
Tolerable
Risk
Let’s see…
Roland Rousseau – Portfolio Construction Research – November 2013
2
2
3. What Returns can we expect without skill?
Portfolio Weights and Returns (pa) since 1985
ALBI
ALSI
Cash
Offshore
Return
60%
20%
10%
10%
15.3%
50%
30%
10%
10%
15.6%
40%
40%
10%
10%
15.9%
30%
50%
10%
10%
16.1%
20%
60%
10%
10%
16.2%
15%
70%
10%
5%
16.6%
CPI Inflation (pa)
since 1985
8,4%
Source: Barclays, ABSA Capital, Inet
16.6%
Long-Term
Portfolio Returns
for different
Equity Allocations
15.6%
15.9%
16.1%
16.2%
15.3%
20%
30%
40%
50%
60%
70%
Source: Barclays, ABSA Capital, Inet
Roland Rousseau – Portfolio Construction Research – November 2013
3
4. “Mommy, where do Excess Returns come from?”
Return
= risk free rate +
10%
=
2%
±
Exposure to Equity factor
Exposure to Bond factor
Exposure to Currency factor
Exposure to commodity factor
Exposure to Emerging Market factor
Exposure to Value factor
7%
+
uncorrelated
excess skill from
fund manager
±
1%
Skill is the residual excess-return, after ALL returns from the risks have been accounted for
Up to 90% of excess returns come primarily from excess risk, not skill!
Risks are out of our control. We should not take blame or credit for them
Roland Rousseau – Portfolio Construction Research – November 2013
4
5. Are we using the right benchmarks?
Higher Risk = Higher Return, regardless of skill
What are the odds of choosing a portfolio
with a return higher than eg. CPI+5%?
Same risk
Equal weight
(ie no skill)
Higher Risk = Higher Return
without skill!
Source: Barclays, ABSA Capital, Inet
Roland Rousseau – Portfolio Construction Research – November 2013
5
5
6. Battle of the Giants: Allan Gray vs. Coronation
Compound Performances are very misleading
1200
1000
800
30% Bonds 65% Equity 5% Cash
Allan Gray Balanced Fund
Coronation Balanced Fund
CPI+7%
CPI
600
400
200
0
Source: Barclays, ABSA Capital, Inet, Morningstar
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Roland Rousseau – Portfolio Construction Research – November 2013
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7. Relative Performances are more informative
Relative to arbitrary Balanced Fund: 30% Bonds + 65% Equity + 5% Cash
2.2
2.0
Allan Gray Balanced Fund relative performance
Coronation Balanced Fund relative performance
1.8
1.6
1.4
1.2
1.0
0.8
Source: Barclays, ABSA Capital, Inet, Morningstar
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Roland Rousseau – Portfolio Construction Research – November 2013
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9. Building more efficient forecasts
Memorable
Average
(invest more efficiently)
(invest like everyone else)
• Use inconsistent
benchmarks
• Focus on active –
return (alpha)
• Chase past
performance
YOUR
INVESTMENT
CHOICE
• Fair and relevant
benchmarks
• Focus on active –
risk (beta)
• Only pay for
real skill
Roland Rousseau – Portfolio Construction Research – November 2013
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10. Getting the Basics Right first …
STEP 1:
STEP 2:
Choose a long-term, strategic, risk-profile
for your client (asset allocation)
Invest in low-cost
core portfolio
(i.e. passive)
STEP 4:
STEP 3:
Manage risk
actively within
core portfolio
Choose active funds that deliver true
skill (not risk that is disguised as skill)
Watch this space!
Roland Rousseau – Portfolio Construction Research – November 2013
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11. Risks are valuable sources of returns!
Risk-Factors
Risk-Factor
- Interest rates
- Currency
- Inflation
- Volatility
Risk-Premia
- Equity, Bonds, Credit Risk
- Event, Structural Risk
- Liquidity Risk
- Emerging Markets
- Property, Art, Wine, Timber
Accounting Risk-Premia
- Book-to-Market Ratio
- Cash-Flow to Price
Behavioural Risk-Premia
Return Quality, ability to ’predict/model’
eg currency, interest rates
Risk-Premium
eg. equity, value, momentum, small caps, emerging mkts
Outperformance
without active skill!!
But Risk-Premia are
risky (eg Value)!
- Momentum
- Price Reversals
- Earnings surprises/revisions
Roland Rousseau – Portfolio Construction Research – November 2013
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12. ‘Value’ Risk Premium using DY
900
21% pa
Super Duper Fund X
800
FTSE/JSE Div+ Index (J259T)
30 highest DY stocks
FTSE/JSE ALSI (J203T)
700
16% pa
600
500
400
300
200
100
0
2002
2003
2004
2005
2006
2007
2008
2009
Roland Rousseau – Portfolio Construction Research – November 2013
2010
12
2011
2012
2013
13. SA Benchmarking Issues: Peer Group Surveys
Top 20 General Equity Funds (3 years)
1
PSG Equity D
181.33
2
PSG Equity A
177.34
3
Discovery Equity
176.76
4
SIM General Equity B5
176.54
5
PSG Equity B
176.09
6
Foord Equity R
175.92
7
ABSA Select Equity
174.71
8
Marriott Dividend Growth R
174.28
9
SIM General Equity B4
173.69
10
SIM General Equity R
173.32
11
SIM General Equity A
172.21
12
PSG Equity C
172.20
13
Investec Active Quants Z
171.96
14
Old Mutual High Yield Opp A
171.68
15
Coronation Equity R
171.54
16
Aylett Equity A3
171.25
17
Old Mutual RAFI 40 Tracker B1
170.88
18
Metropolitan Multi-Manager Equity
170.40
19
Coronation Equity B2
170.37
20
Kagiso Equity Alpha
170.10
We always chase the Top Managers
Source: Morningstar
Inconvenient Facts and Truths
167 General Equity Funds over period
FTSE/JSE Top 40 ranked 34/167 (80%)
FTSE/JSE ALSI ranked 30/167 (82%)
FTSE/JSE RAFI ranked 28/167 (83%)
FTSE/JSE SWIX ranked 24/167 (86%)
FTSE/JSE Eq. weighted Top 40 8/167 (95%)
FTSE/JSE Div+ ranked 1/167 (100%)
Why are investors not being told about
low-cost, high performance, index funds?
Roland Rousseau – Portfolio Construction Research – November 2013
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14. Indices and CPI are not Benchmarks!
Index:
collection of stocks that are weighted to capture some market effect
Benchmark: yardstick to measure and incentivise a fund manager’s skill against
Return Target: a goal or expectation for an average return over time (eg CPI+x%)
How can we beat the balanced-fund benchmark without skill:
60% Equity, 30% Bonds, 10% Cash?
Overweight Equities – ERP 3-6% pa
How can we beat the FTSE100 without skill?
Overweight value stocks or small caps – VRP 3-5%pa
How can we beat the MSCI World Index without skill?
Overweight Emerging Markets – EMRP 2-5% pa
Roland Rousseau – Portfolio Construction Research – November 2013
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15. Risks are out of our control/influence!
Ben
2 tons per hectare
Which farmer
is better?
Roy
4 tons per hectare
What if Farmer Roy had double the rainfall?
We cannot take credit/blame for the rainfall (ie risks)
and therefore they need to be stripped out of our performance!
Roland Rousseau – Portfolio Construction Research – November 2013
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16. SA Benchmarking Problems: Beware CPI Benchmarks
Good Benchmarks need to be a) Fair and b) Relevant
Example: is CPI+x% a relevant and fair balanced fund benchmark?
Typical Balanced
Benchmark
Portfolio with same
average Risk-Profile
Cash
Cash
Cash
Bonds
Average Active
Portfolio
Equity
10%
Bonds
Bonds
Equity
15%
12%
CPI+x% tell us nothing about the skill of the manager!
Roland Rousseau – Portfolio Construction Research – November 2013
Equity
16
17. Conclusion: Chasing skill is never enough
Wealth accumulation comes from portfolio efficiency,
not chasing past performance.
18. International Best Practice
Bill Miller
The Legg Mason Primary Value Fund is one of the most
successful active funds in the world and has
outperformed the S&P500 for 15 years in a row.
Example of Multi-Factor Benchmarking:
Dartmouth College lets its students, as part of their education, analyse how much the Legg Mason
fund’s return variability comes from value, size and market risk. Their conclusion is: “The high returns
are associated with the fund’s extreme exposure to small-cap and value-risk rather than the skill of
the manager. The three factors explain all but 8% of the variation in historical returns.” So 92% of the
returns’ variability come from just 3 risk-factors!
Roland Rousseau – Portfolio Construction Research – November 2013
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19. Future of Investment Portfolio Management
Harindra de Silva
Well-known academic and President of Analytic Investors Inc.
This article appeared in the CFA Magazine (Sept-Oct 2006).
“Maybe what we’re calling skill really isn’t skill. It may turn out that skill can be partially decomposed into what have
come to be called the Fama/French risk factors – the small-cap premium, the value-growth spread, the momentum
effect, etc. Discussion may turn to how the excess returns, now attributed to skill, are actually coming from such
factors.
Then, the question will become whether managers can structure their exposure to such factors better. We may go
from a world of [stock picking] to risk allocation! The skill becomes how you build portfolios to exploit the correlations
between these factors and how these factors pay-off at different points in time. As shown by beta-risks, returns to risk
factors are not a zero-sum game, I hope that repeatable and scalable ways of capturing excess returns can be devised
that will prove sustainable and benefit the entire industry.”
Roland Rousseau – Portfolio Construction Research – November 2013
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20. Conclusion: If you have your money invested in active
funds only, you can significantly improve portfolio
efficiency by including index funds, without
sacrificing any excess returns!
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