The document discusses the performance of various model investment portfolios from 1973-2010. It provides the annualized compound returns and annualized standard deviations for 5 model portfolios over this period. The model portfolios had varying allocations to US and international stocks, bonds, and emerging markets. Model portfolio 5, which had the most diversified allocation, achieved the highest annualized return of 11.65% and relatively low standard deviation of 11.26% compared to the other portfolios.
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.
Pillar Capital provides investment management services focused on dimensions of returns, diversification, and investor discipline. Dimensions of returns refers to systematic differences in expected returns based on factors like company size, relative price, and profitability. Historical data shows that investing based on these dimensions has rewarded long-term investors. Portfolios can be structured to target dimensions shown to produce premiums, like favoring small cap, value, and high-profitability companies.
The document discusses different methods for calculating rates of return on investments. It provides details on simple rates of return, adjusted rates of return, and holding period returns. Historical data on rates of return for various asset classes like stocks, bonds, and bills from 1926-1999 is presented, showing average annual returns and standard deviations. The risk-return relationship and concept of risk premiums are also covered.
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.
The document provides an overview of markets and investment outlook from various managers in the last quarter. Key points include:
- Markets performed well despite initial Brexit reaction, with UK and international equities rising. Bonds and commodities also rose.
- Managers are assessing economic outlooks, seeing potential for US growth but concerns in Europe. Some see opportunities from coordinated fiscal plans.
- Managers have mixed views on regions like Japan, Europe, and property exposure. Bonds are largely held for safety over yield.
- The outlook discusses navigating uncertainty after Brexit through diversification. Unemployment rates suggest the UK economy remains stronger than Eurozone economies.
An index reflects movements in the underlying market and expresses price changes over time. Indices are used by institutional investors to analyze strategies and measure performance. The most important type is the market-value weighted index, where components are weighted by their total market capitalization. This includes major indices like the S&P 500. Investors can purchase index funds to obtain returns matching the performance of indices like the ALSI at low cost.
This document provides an overview and analysis of the European listed real estate sector from the perspective of Degroof Petercam Asset Management. It discusses key debates around interest rates, volatility, valuation, and efficiency compared to other asset classes. It then introduces the investment team, philosophy, and process for several funds managed by Degroof Petercam, including the Petercam Securities Real Estate Europe fund. Tables provide financial details and forecasts for numerous European real estate companies.
The document discusses the performance of various model investment portfolios from 1973-2010. It provides the annualized compound returns and annualized standard deviations for 5 model portfolios over this period. The model portfolios had varying allocations to US and international stocks, bonds, and emerging markets. Model portfolio 5, which had the most diversified allocation, achieved the highest annualized return of 11.65% and relatively low standard deviation of 11.26% compared to the other portfolios.
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.
Pillar Capital provides investment management services focused on dimensions of returns, diversification, and investor discipline. Dimensions of returns refers to systematic differences in expected returns based on factors like company size, relative price, and profitability. Historical data shows that investing based on these dimensions has rewarded long-term investors. Portfolios can be structured to target dimensions shown to produce premiums, like favoring small cap, value, and high-profitability companies.
The document discusses different methods for calculating rates of return on investments. It provides details on simple rates of return, adjusted rates of return, and holding period returns. Historical data on rates of return for various asset classes like stocks, bonds, and bills from 1926-1999 is presented, showing average annual returns and standard deviations. The risk-return relationship and concept of risk premiums are also covered.
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.
The document provides an overview of markets and investment outlook from various managers in the last quarter. Key points include:
- Markets performed well despite initial Brexit reaction, with UK and international equities rising. Bonds and commodities also rose.
- Managers are assessing economic outlooks, seeing potential for US growth but concerns in Europe. Some see opportunities from coordinated fiscal plans.
- Managers have mixed views on regions like Japan, Europe, and property exposure. Bonds are largely held for safety over yield.
- The outlook discusses navigating uncertainty after Brexit through diversification. Unemployment rates suggest the UK economy remains stronger than Eurozone economies.
An index reflects movements in the underlying market and expresses price changes over time. Indices are used by institutional investors to analyze strategies and measure performance. The most important type is the market-value weighted index, where components are weighted by their total market capitalization. This includes major indices like the S&P 500. Investors can purchase index funds to obtain returns matching the performance of indices like the ALSI at low cost.
This document provides an overview and analysis of the European listed real estate sector from the perspective of Degroof Petercam Asset Management. It discusses key debates around interest rates, volatility, valuation, and efficiency compared to other asset classes. It then introduces the investment team, philosophy, and process for several funds managed by Degroof Petercam, including the Petercam Securities Real Estate Europe fund. Tables provide financial details and forecasts for numerous European real estate companies.
The document provides an overview of the Long Term Growth Fund, a life settlement fund managed by Carlisle Funds. It discusses what life settlements are, the advantages of the asset class, the fund's investment strategy of purchasing life insurance policies and building a diversified portfolio, and the benefits and risks involved. The fund aims to generate above-average returns with low volatility through a buy-and-hold approach in the uncorrelated life settlement market. Key details about the fund such as its structure, service providers, fees and liquidity are also summarized.
The Long Term Growth Fund seeks to build a large diversified portfolio of life insurance policies purchased beyond the contestability period. The fund isolates mortality risk and employs detailed actuarial and financial analysis to account for longevity risk. Policies are marked to market monthly. The fund is managed by Carlisle Management Company and has a 2% management fee and 20% performance fee. As of the report date, the fund has a large number of policies diversified across carriers, ages, genders, medical conditions, face values, and more.
This document discusses innovations in finance from the 1950s to today. It begins by outlining conventional wisdom from the 1930s that focused on picking individual winners and holding concentrated portfolios. It then summarizes several seminal works and developments that helped shift the field: James Tobin's separation theorem emphasized diversification; William Sharpe developed the single-factor capital asset pricing model relating risk and return; Eugene Fama developed the efficient market hypothesis asserting that markets accurately reflect information. This led to the development of index funds by John Bogle, providing low-cost, passive investment options. Overall, the document outlines major theoretical and practical innovations that professionalized the field of finance and emphasized diversification, risk-adjusted returns, and passive investing.
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.
The document provides information about the Catalyst Millburn Hedge Strategy Fund, a multi-strategy hedge fund managed by Millburn Capital Management. It discusses Millburn's research process which integrates multiple data inputs within statistical learning models. The fund trades over 125 liquid markets using a fully systematic strategy and has achieved strong long-term returns with lower drawdowns compared to stocks and other hedge funds since 1997. Millburn has over 45 years of experience in quantitative investing across global markets and asset classes.
Pursuing a Better Investment Experience with Capital AssociatesRobUgiansky
This document outlines 10 key principles for improving the odds of investment success:
1) Embrace market pricing and the information incorporated into prices.
2) Don't try to outguess the market through stock picking or market timing as most funds do not outperform their benchmarks.
3) Resist chasing past performance as it does not predict future returns.
4) Let markets work for you through long-term investing as this has rewarded investors over time.
Indexed universal life (IUL) provides permanent life insurance protection with the potential for higher returns than traditional universal life due to its indexing of interest credits to external market indexes. IUL offers downside protection from market downturns while providing upside potential from market growth. Wealth Designs Advisors Group is available to consult on IUL case design and carrier selection to help clients meet their retirement, college funding, and other financial goals.
An index is constructed to measure movements in financial markets like stocks and bonds. The SENSEX is India's oldest stock market index, first compiled in 1986 based on 30 large, established companies. It uses a free-float methodology, where the index level reflects the free-float market value of component stocks relative to a base period. Stocks are selected based on criteria like market capitalization, liquidity, and representation of key industries.
The document provides an introduction to stock markets and investing. It discusses key concepts such as stocks, bonds, indexes, market orders, short selling, and margin trading. It also outlines different market sectors including defensive sectors like utilities and cyclical sectors that are more sensitive to economic changes. Finally, it introduces the LHA Stock Market Game, where students will each receive $100,000 to invest and trade stocks against their classmates.
The document provides an overview and analysis of the DIAS Conservative Income Portfolio, which aims to preserve capital and deliver over 5% annual income. It describes the portfolio's composition, including a 56% allocation to equities focused on high-dividend sectors and a 28% allocation to fixed income, primarily through short-term bond ETFs. It explains that the portfolio's performance should not be compared to stock market indexes due to its unique strategy and composition. The goal of the portfolio is to preserve capital with no losses to principal each year.
Attached please find our monthly market perspectives piece for September. In light of the recent market volatility, we outline alternative investments, in particular market neutral investments. Currently, our preference is to use market neutral strategies for portfolio defense. In today’s market conditions, particularly in fixed income, traditional asset allocation strategies comprised solely of stocks and bonds may be challenged to provide an adequate balance of investment risk and return.
1. The document provides information to help investors diversify their retirement plan investments and manage risk. It discusses the basics of different asset classes like stocks, bonds, and capital preservation instruments.
2. Sample investor profiles are provided to help investors determine an appropriate asset allocation based on their time horizon and risk tolerance. A variety of ready-mixed and individual fund options are available through the plan.
3. Rebalancing is discussed as a strategy to manage risk over time by adjusting allocations back to their original targets when market fluctuations cause them to diverge.
Market volatility is part of investing in stocks. But how often does the market turn down? What is the long term impact? For buy-and-hold investors, it is important to have some perspective on the vulnerabilities and resiliency of the stock market.
The document outlines a successful investing strategy of buying a low-cost index fund and holding it forever. It explains that most actively managed mutual funds fail to beat the market after fees, which average 2.5% annually. Over long periods of time, these costs overwhelm returns and compound, so that an initial $100,000 investment grows to only $1,450,400 in 50 years at a net 5.5% return in a mutual fund, versus $4,690,000 at an 8% gross market return in a low-cost index fund. Therefore, the best strategy is to keep costs low by investing in broad-based index funds.
Our work demands often leave us with little or no time to spend with the family. This routine can lead to unwarranted stress and fatigue.
Both work and family are the cornerstones of life, neither of which can be ignored. That is why we need to strike a right balance between work and personal life to lead a happy and a healthier life.
Balancing both aspects of your life means you have to give yourself equally so that one will not suffer at the expense of the other. In the long run, the joy, happiness and fulfilment derived from both are worth the effort.
Investing in balanced funds (also known as Hybrid funds) is not much different. Similar to work-life balance, balanced funds are here to give us the best of both worlds.
Today’s lesson by Prof. Simply Simple attempts to explain the importance of balanced funds.
Look forward to your valuable feedback at professor@tataamc.com
- After interviewing their investment manager partners, the consensus is one of cautious optimism about further stock market gains, but managers note the path remains precarious.
- Managers favor value stocks over growth and are underexposed to emerging markets and commodities despite recent strength in those areas.
- Within fixed income, emerging market bonds are becoming more attractive due to US dollar weakness.
- Government bonds are viewed more as portfolio insurance than a source of return given their low yields.
Parametric provides strategies for exploiting increased market volatility, including rebalancing portfolios and using options strategies. Rebalancing reduces concentration risks and volatility over time by selling assets that have increased in value and buying those that have decreased, capturing returns from volatility. Options strategies can also provide downside protection for portfolios while retaining upside potential. Parametric implemented an options overlay for a client in 2008 that protected against a 5-20% market decline while retaining upside to 30%, balancing protection and participation in gains.
Developing an Asset Allocation Strategy and the Military Familymilfamln
This webinar discusses asset allocation, diversification and strategies to implement an individualized investment plan https://learn.extension.org/events/1715
Simplifying Build Scripts With Gradle [Groovy based build automation] IndicThreads
Session presented at the 6th IndicThreads.com Conference on Java held in Pune, India on 2-3 Dec. 2011.
http://Java.IndicThreads.com
--
This session will introduce the audience to Gradle, the various DSLs used to describe builds as well as the plugin infrastructure that allows for extending Gradle’s capabilities.
- http://www.indicthreads.com/9265/simplifying-builds-with-gradle/
The document provides an overview of the Long Term Growth Fund, a life settlement fund managed by Carlisle Funds. It discusses what life settlements are, the advantages of the asset class, the fund's investment strategy of purchasing life insurance policies and building a diversified portfolio, and the benefits and risks involved. The fund aims to generate above-average returns with low volatility through a buy-and-hold approach in the uncorrelated life settlement market. Key details about the fund such as its structure, service providers, fees and liquidity are also summarized.
The Long Term Growth Fund seeks to build a large diversified portfolio of life insurance policies purchased beyond the contestability period. The fund isolates mortality risk and employs detailed actuarial and financial analysis to account for longevity risk. Policies are marked to market monthly. The fund is managed by Carlisle Management Company and has a 2% management fee and 20% performance fee. As of the report date, the fund has a large number of policies diversified across carriers, ages, genders, medical conditions, face values, and more.
This document discusses innovations in finance from the 1950s to today. It begins by outlining conventional wisdom from the 1930s that focused on picking individual winners and holding concentrated portfolios. It then summarizes several seminal works and developments that helped shift the field: James Tobin's separation theorem emphasized diversification; William Sharpe developed the single-factor capital asset pricing model relating risk and return; Eugene Fama developed the efficient market hypothesis asserting that markets accurately reflect information. This led to the development of index funds by John Bogle, providing low-cost, passive investment options. Overall, the document outlines major theoretical and practical innovations that professionalized the field of finance and emphasized diversification, risk-adjusted returns, and passive investing.
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.
The document provides information about the Catalyst Millburn Hedge Strategy Fund, a multi-strategy hedge fund managed by Millburn Capital Management. It discusses Millburn's research process which integrates multiple data inputs within statistical learning models. The fund trades over 125 liquid markets using a fully systematic strategy and has achieved strong long-term returns with lower drawdowns compared to stocks and other hedge funds since 1997. Millburn has over 45 years of experience in quantitative investing across global markets and asset classes.
Pursuing a Better Investment Experience with Capital AssociatesRobUgiansky
This document outlines 10 key principles for improving the odds of investment success:
1) Embrace market pricing and the information incorporated into prices.
2) Don't try to outguess the market through stock picking or market timing as most funds do not outperform their benchmarks.
3) Resist chasing past performance as it does not predict future returns.
4) Let markets work for you through long-term investing as this has rewarded investors over time.
Indexed universal life (IUL) provides permanent life insurance protection with the potential for higher returns than traditional universal life due to its indexing of interest credits to external market indexes. IUL offers downside protection from market downturns while providing upside potential from market growth. Wealth Designs Advisors Group is available to consult on IUL case design and carrier selection to help clients meet their retirement, college funding, and other financial goals.
An index is constructed to measure movements in financial markets like stocks and bonds. The SENSEX is India's oldest stock market index, first compiled in 1986 based on 30 large, established companies. It uses a free-float methodology, where the index level reflects the free-float market value of component stocks relative to a base period. Stocks are selected based on criteria like market capitalization, liquidity, and representation of key industries.
The document provides an introduction to stock markets and investing. It discusses key concepts such as stocks, bonds, indexes, market orders, short selling, and margin trading. It also outlines different market sectors including defensive sectors like utilities and cyclical sectors that are more sensitive to economic changes. Finally, it introduces the LHA Stock Market Game, where students will each receive $100,000 to invest and trade stocks against their classmates.
The document provides an overview and analysis of the DIAS Conservative Income Portfolio, which aims to preserve capital and deliver over 5% annual income. It describes the portfolio's composition, including a 56% allocation to equities focused on high-dividend sectors and a 28% allocation to fixed income, primarily through short-term bond ETFs. It explains that the portfolio's performance should not be compared to stock market indexes due to its unique strategy and composition. The goal of the portfolio is to preserve capital with no losses to principal each year.
Attached please find our monthly market perspectives piece for September. In light of the recent market volatility, we outline alternative investments, in particular market neutral investments. Currently, our preference is to use market neutral strategies for portfolio defense. In today’s market conditions, particularly in fixed income, traditional asset allocation strategies comprised solely of stocks and bonds may be challenged to provide an adequate balance of investment risk and return.
1. The document provides information to help investors diversify their retirement plan investments and manage risk. It discusses the basics of different asset classes like stocks, bonds, and capital preservation instruments.
2. Sample investor profiles are provided to help investors determine an appropriate asset allocation based on their time horizon and risk tolerance. A variety of ready-mixed and individual fund options are available through the plan.
3. Rebalancing is discussed as a strategy to manage risk over time by adjusting allocations back to their original targets when market fluctuations cause them to diverge.
Market volatility is part of investing in stocks. But how often does the market turn down? What is the long term impact? For buy-and-hold investors, it is important to have some perspective on the vulnerabilities and resiliency of the stock market.
The document outlines a successful investing strategy of buying a low-cost index fund and holding it forever. It explains that most actively managed mutual funds fail to beat the market after fees, which average 2.5% annually. Over long periods of time, these costs overwhelm returns and compound, so that an initial $100,000 investment grows to only $1,450,400 in 50 years at a net 5.5% return in a mutual fund, versus $4,690,000 at an 8% gross market return in a low-cost index fund. Therefore, the best strategy is to keep costs low by investing in broad-based index funds.
Our work demands often leave us with little or no time to spend with the family. This routine can lead to unwarranted stress and fatigue.
Both work and family are the cornerstones of life, neither of which can be ignored. That is why we need to strike a right balance between work and personal life to lead a happy and a healthier life.
Balancing both aspects of your life means you have to give yourself equally so that one will not suffer at the expense of the other. In the long run, the joy, happiness and fulfilment derived from both are worth the effort.
Investing in balanced funds (also known as Hybrid funds) is not much different. Similar to work-life balance, balanced funds are here to give us the best of both worlds.
Today’s lesson by Prof. Simply Simple attempts to explain the importance of balanced funds.
Look forward to your valuable feedback at professor@tataamc.com
- After interviewing their investment manager partners, the consensus is one of cautious optimism about further stock market gains, but managers note the path remains precarious.
- Managers favor value stocks over growth and are underexposed to emerging markets and commodities despite recent strength in those areas.
- Within fixed income, emerging market bonds are becoming more attractive due to US dollar weakness.
- Government bonds are viewed more as portfolio insurance than a source of return given their low yields.
Parametric provides strategies for exploiting increased market volatility, including rebalancing portfolios and using options strategies. Rebalancing reduces concentration risks and volatility over time by selling assets that have increased in value and buying those that have decreased, capturing returns from volatility. Options strategies can also provide downside protection for portfolios while retaining upside potential. Parametric implemented an options overlay for a client in 2008 that protected against a 5-20% market decline while retaining upside to 30%, balancing protection and participation in gains.
Developing an Asset Allocation Strategy and the Military Familymilfamln
This webinar discusses asset allocation, diversification and strategies to implement an individualized investment plan https://learn.extension.org/events/1715
Simplifying Build Scripts With Gradle [Groovy based build automation] IndicThreads
Session presented at the 6th IndicThreads.com Conference on Java held in Pune, India on 2-3 Dec. 2011.
http://Java.IndicThreads.com
--
This session will introduce the audience to Gradle, the various DSLs used to describe builds as well as the plugin infrastructure that allows for extending Gradle’s capabilities.
- http://www.indicthreads.com/9265/simplifying-builds-with-gradle/
Jisc RSC Eastern Web 2.0 Your new business partner? Apr 2010 '"Why" you need ...JISC RSC Eastern
This document discusses the use of Web 2.0 tools in business strategies. It begins with an introduction to a presentation on how Web 2.0 can be used as a business partner. The document then provides examples of main Web 2.0 tools for promotion and customer interaction, such as contact management, email, websites, podcasts/blogs, and social media. It also discusses ensuring commitment from leadership, clarifying objectives, and integrating online strategies with other marketing communications.
Jisc RSC Eastern eFair July 2013 'A leg to stand on... (Jisc Techdis, inclusi...JISC RSC Eastern
Recently published guidance for disabled students itemises a range of technology based "reasonable adjustments" they should expect to find in any post 16 learning provider.These expectations are based on advice and guidance that has been available to the sector for more than 6 years so learning providers claiming they didn't know wouldn't have a leg to stand on.
The document summarizes the services provided from 2009-2010, including 26 events attended by 289 delegates, 11 forum meetings with 228 attendees, and 8 online briefings with 21 participants. It also covered content, amplification, and partnership and collaboration, seeking comments and feedback on the services.
Go Programming Language - Learning The Go Lang wayIndicThreads
The document summarizes a presentation on the Go programming language. It covers the basics of Go including that it is open source, has no semicolons, uses namespaces and the "main" keyword. It then walks through examples of printing multiplication tables, using arrays and slices, testing code, concurrency using goroutines and channels, working with structs and interfaces. The presentation highlights Go's simplicity, reliability and efficiency and provides a GitHub link for the example code.
Understanding Bitcoin (Blockchain) and its Potential for Disruptive ApplicationsIndicThreads
Presented at the IndicThreads.com Software Development Conference 2016 held in Pune, India. More at http://www.IndicThreads.com and http://Pune16.IndicThreads.com
--
Http2 is here! And why the web needs itIndicThreads
The document summarizes the evolution of HTTP from versions 0.9 to 2.0. It outlines the limitations of HTTP/1.1 for modern web pages with many dependent resources. HTTP/2 aims to address these limitations through features like multiplexing, header compression, server push and priority to reduce latency. It discusses implementations of HTTP/2 and the impact on developers. The document also briefly mentions upcoming protocols like QUIC that build on HTTP/2 to further optimize performance.
The document provides an analysis of Land Securities Group PLC, a UK property company. It includes the following key points:
- Land Securities is the largest property company in the UK by market capitalization and is a member of the FTSE 100.
- The analysis estimates the cost of equity for Land Securities to be 6.78% based on the company's beta of 0.9 calculated from its market model, a market risk premium of 5.2%, and a risk-free rate of 2.1%.
- Using the dividend valuation model with a dividend growth rate of 2.6% and the estimated cost of equity, the document values Land Securities' share price at £0.782, which
The document provides an overview of markets and investment outlook from various managers in the last quarter. Key points include:
- Markets performed well despite initial Brexit reaction, with UK and international equities rising. Bonds and commodities also rose.
- Managers are assessing economic outlooks, seeing potential for US growth but concerns in Europe. Some see opportunities from coordinated fiscal plans.
- Managers have mixed views on regions like Japan, Europe, and property exposure. Bonds are largely held for safety over yield.
- The outlook discusses navigating uncertainty after Brexit through diversification. Unemployment rates suggest the UK economy remains stronger than Eurozone economies.
This document discusses retirement planning and decumulation strategies. It provides historical context on retirement in Greek culture and the transition to individual saving. It also discusses the challenges facing retirees in the US, including managing withdrawals, market risks, and longevity risks. The document advocates for combining safety and growth in retirement portfolios, and outlines strategies like target date funds, income replacement, and combining various account types to help solve decumulation challenges.
The document provides an explanation for why long-term investing in assets is recommended over cash or inflation. It discusses diversifying investments across asset classes to reduce risk and increase returns. Passive funds are preferred over active funds due to higher costs and lack of evidence that active funds consistently outperform indexes. Risk is reduced by combining low-correlated assets from different categories in portfolios tailored to individual risk tolerances.
The document discusses various investment and protection services available through RL360. It begins by summarizing the Isle of Man's history and reputation as an offshore financial center. It then discusses RL360's regulation and client protection schemes. The document goes on to provide examples of regular contribution investment plans, single sum investments, and independent discretionary management services. It also introduces a new emerging market equity income fund and describes international protection plans.
Chartwell Wealth Management is a fee-based financial advisory firm that has provided bespoke financial solutions since 1992. They offer holistic financial planning and manage risk-based investment portfolios through their own wrap platform. Their investment philosophy focuses on managing risk through diversification, cost reduction, and regular strategic reviews of fund managers and client portfolios. Performance of their risk-graded portfolio series has been strong, with annualized returns ranging from 11.09% to 26.84% over various periods from 2010 to 2013.
1. The document discusses key principles for improving the odds of investment success, including embracing market pricing, not trying to outguess the market through timing, and resisting chasing past performance.
2. It notes that most mutual funds do not maintain top performance over time and that past returns are not predictive of future returns. Investors are advised to consider the drivers of returns like market risk premia.
3. The principles also emphasize smart diversification across market segments, avoiding reactive investing to headlines, and focusing on controlling what you can, like expenses and discipline, rather than market movements.
The document provides disclosures and sources for several exhibits. Exhibit 1 discloses trading data sources for world equity trading volumes. Exhibit 2 describes the mutual fund sample and methodology used to determine "winner" funds that outperformed benchmarks. Exhibit 3 explains how the analysis was conducted to determine the percentage of top-ranked funds that maintained their ranking in subsequent years. The source for Exhibits 2 and 3 is also provided.
This article discusses the growing interest from investors in micro-cap and nano-cap equity strategies as a way to diversify portfolios and gain exposure to uncorrelated assets. It notes that popular funds investing in these small companies are constrained by their limited capacity. Wealth managers are therefore seeking ways to access these strategies through managers that have flexibility to invest across the market cap scale or through closed-end funds. The article also cautions that micro-cap investing requires a long time horizon due to the higher volatility, but that it may provide defensive qualities during market downturns.
This document introduces a diverse portfolio of investment opportunities including funds, futures and options, overseas property, telecommunications, carbon credits, fine wine, gold, arts and entertainment, and club and bar awards. Experienced investors can gain access to assets that may otherwise be unavailable. Appointments can be made with independent financial advisors to discuss the various funds and their terms and conditions in full. Capital-Investments serves as an introducer but does not provide advice directly.
The document provides an economic and market review for Q1 2009. It summarizes key economic indicators such as GDP, inflation, unemployment and housing prices. It also reviews the performance of major asset classes and indexes in 2008. Nearly all asset classes lost money last year except investment-grade fixed income. The S&P 500 fell over 30% while small cap and international markets declined over 35%.
The document provides information about pursuing a better investment experience by discussing various fees associated with mutual fund investments and noting that mutual funds are not guaranteed and past performance is not indicative of future returns. It emphasizes embracing market pricing, avoiding attempts to outguess the market through stock picking or market timing, and resisting chasing past performance. The document advocates letting markets work for the investor through long-term, globally diversified investments.
1. The document discusses inflation and its impact on purchasing power over time. Even at 2% inflation per year, the purchasing power of £1000 is reduced to £600 after 25 years.
2. It provides information on the Consumer Price Index (CPI) and Retail Price Index (RPI), noting key differences in their calculation and which is considered more relevant.
3. Examples are given of items that have been added to or removed from the CPI basket in recent years as it is annually reviewed and updated to reflect consumer spending habits.
- Hidden risks exist in markets from "bears" that are in plain sight and "bergs" that are hidden in the system.
- There is little compensation for risk in corporate debt markets globally as yields have fallen while risks of default have not decreased. Open-ended funds have also increasingly invested in corporate bonds.
- Diagnostic tools are needed to understand potential amplification and firesales from linkages between open-ended funds, dealers, and markets during periods of stress. System simulations can help explore these dynamics.
The document discusses whether traditional cautious managed funds are still relevant given changes in regulations and investment opportunities. It presents the benefits of a modern multi-asset fund compared to traditional funds, including exposure to alternative asset classes, tactical asset allocation, and manager selection. The Skandia Diversified fund is provided as an example of a modern multi-asset fund that aims to outperform its sector through diversification across asset classes and managers.
The presentation tries to give an overview of why an individual (retail investor) should opt for investing in the financial markets through various vehicles for getting returns that can beat inflation and other asset classes. Reach out for getting more clarity or assistance regarding the same.
2. Can I, or somebody I know, reliably predict enough superior performing investments, in advance, that will create excess return above the market, after costs, for my clients?
3.
4.
5. Focus on the dimensions of risk that deliver higher expected returns over the longer term
6. Maintain discipline and a commitment to a long term investment strategy, avoiding attempts to market time
7.
8.
9. Equity Returns of Developed Markets Annual Return (%) In British Pounds Highest Return Lowest Return Source: MSCI developed markets country indices (net dividends) with at least twenty-five years of data. MSCI data copyright MSCI 2009, all rights reserved. This material has been distributed by Dimensional Fund Advisors Ltd., which is authorised and regulated by the Financial Services Authority. Past performance is no guarantee of future results.
13. Size and Value Effects Are Strong around the WorldAnnual Index DataPercent per Annum in £ Annualised Compound Returns (%) Standard Deviation (%) Value stocks are above the 30th percentile in book-to-market ratio. Growth stocks are below the 70th percentile in book-to-market ratio. Simulations are free-float weighted both within each country and across all countries. UK and Europe data provided by London Business School/StyleResearch. US value and growth data provided by Fama/French. This material has been distributed by Dimensional Fund Advisors Ltd., which is authorised and regulated by the Financial Services Authority. Past performance is no guarantee of future results.
14. UK Value vs. UK Market Monthly: July 1955-December 2009 5340.3 Percentage of All Rolling Periods Where UK Value Outperformed UK Market Source: UK Market is the FTSE All-Share Index. FTSE data published with the permission of FTSE. UK Value simulated by Dimensional from Bloomberg securities data, prior to 1994 data provided by London Business School. This material has been distributed by Dimensional Fund Advisors Ltd which is authorised and regulated by the Financial Services Authority. Past performance is no guarantee of future results.
15. UK Small vs. UK Market Monthly: March 1955-December 2009 Percentage of All Rolling Periods Where UK Small Outperformed UK Market Source: UK Small simulated by Dimensional from StyleResearch securities data; prior to July 1981, Hoare Govett Smaller Companies Index, provided by the London School of Business. UK Market is the FTSE All-Share Index. FTSE data published with the permission of FTSE. This material has been distributed by Dimensional Fund Advisors Ltd., which is authorised and regulated by the Financial Services Authority. Past performance is no guarantee of future results.
16.
17. Over longer time periods, the size and value premiums are more prevalent.
24. Over long time periods, high management fees and related expenses can be a significant drag on wealth creation.
25. Passive investments generally maintain lower fees than the average actively managed investment by minimising trading costs and eliminating the costs of researching stocks.£5,000,000 2% Fee £4,000,000 £3,745,318 3% Fee British Pounds £3,000,000 £2,806,794 £2,000,000 £1,000,000 1 Year 3 Years 5 Years 10 Years 20 Years 30 Years Time For illustrative purposes only.
26. The role of Fixed Interest investments within a portfolio
30. Historically, longer maturity instruments have higher standard deviations and have not provided consistently greater returns.Return (%) US Equities UK Equities 10 UK Bonds UK Bills US Bonds 5 US Bills 0 10 15 20 5 25 Standard Deviation (%) Dimson, Elroy, Paul Marsh, and Mike Staunton. Millennium Book II: 101 Years of Investment Returns. ABN AMRO and London Business School, 2001. This publication defines the data used for the above chart and matrix as follows: UK Bills are UK One-Month Treasury Bills (FTSE). UK Bonds are the ABN AMRO Bond Index. UK Equities are the ABN AMRO/LBS Equity Index. US Bills are commercial bills 1900-1918 and One-Month US Treasury Bills (Ibbotson) 1919-2000. US Bonds are government bonds 1900-1918, the Federal Reserve Bond Index 10-15 Years 1919-1925, Long-Term Government Bonds (Ibbotson) 1926-1998, and the JP Morgan US Government Bond Index 1999-2000. US Equities are Schwert’s Index Series 1900-1925, CRSP 1-10 Deciles Index 1926-1970, and the Dow Jones Wilshire 5000 Index 1971-2000.
Editor's Notes
This cartogram depicts the world not according to land mass, but by the size of each country’s stock market relative to the world’s total market value (free-float adjusted). Population, gross domestic product, exports and other economic measures may influence where people invest. But the map offers a different way to view the universe of equity investment opportunities. If markets are efficient, global capital will migrate to destinations offering the most attractive expected returns. Therefore, the relative size and growth of markets may help assess the political, economic and financial forces at work in countries. The cartogram vividly illustrates the importance of global diversification and the need for investors to avoid over-allocating capital to their home country’s stock market. Those who maintain a “home market bias” are closing their portfolios to a large share of the investment universe. Of course, the investment world is in motion, and these proportions will change over time as capital flows to markets offering the most attractive returns.
Talking Points:The size and BtM effects appear in both UK and international markets—strong evidence that the risk factors are systematic across the globe.This graph demonstrates the higher expected returns offered by small cap stocks and value (high BtM) stocks in the UK, Europe ex UK, US, and emerging markets. Note that the international and emerging markets data is for a shorter time frame.Small cap stocks are considered riskier than large cap stocks, and value stocks (as defined by a higher book-to-market ratio) are deemed riskier than growth stocks. These higher returns reflect compensation for bearing higher risk. A multifactor approach incorporates both size and value measures—and exposure to non-UK markets—in an effort to increase expected returns and reduce portfolio volatility. An effective way to capture these effects is through portfolio structure.
The following three slides underscore the importance of maintaining a long-term perspective in a structured portfolio and committing to one’s asset allocation.This slide documents that the value effect grows stronger over longer holding periods. The chart calculates the frequency that value stocks have outperformed the overall market since 1955. This performance is calculated according to rolling time periods—from one year to forty years.The bars in each column indicate the percentage of the time that the UK Value stocks outperformed the UK Market for each rolling period. For example, there were 643 one-year periods (e.g., July 1955 through June 1956), 535 ten-year periods, and 415 twenty-year periods, and 175 forty-year periods. In these holding periods, value outperformed the UK Market 70%, 99%, 100%, and 100% of the time, respectively.Although value stocks have higher expected returns than growth stocks, investors should recognise that the record of realised returns does not assure a similar pattern in the future. The timing and magnitude of the value premium will always be uncertain.
Talking Points:The size effect also proves itself over longer holding periods. The chart applies the same format to illustrate that risk factor compensation is also working in the small cap arena.The bars in each column indicate the percentage of the time that the UK Small stocks outperformed the UK Market for each rolling period. For example, between March 1955 and December 2009, there were 647 one-year holding periods, 479 fifteen-year periods, and 179 forty-year periods. In these holding periods, small cap stocks outperformed the UK Market 66%, 78%, and 100% of the time, respectively.Although small company stocks have higher expected returns than large company stocks, investors should recognise that the record of realised returns does not assure a similar pattern in the future. The timing and magnitude of the size premium will always be uncertain.
Talking Points:The harsh reality of market efficiency has not stopped speculators and other traders from attempting to read the future. On paper, market timing offers a seductive prospect: By predicting market direction ahead of time, a trader might capture only the best-performing days and avoid the worst. This slide tells the other side of that story. Large gains may come in quick, unpredictable surges. A trader who misinterprets events may leave the market at the wrong time. Missing only a small fraction of days—especially the best days—can defeat a timer’s strategy.For example, over a twenty-four-year period (1986-2009), missing the best twenty-five trading days would have cut FTSE All-Share Index annualised compound return from 10.00% to 4.41%.Trying to forecast which days or weeks will yield good or bad returns is a guessing game that can prove costly for investors.
Talking Points: The graph shows that longer-term UK bonds offer higher expected returns than one-year UK bills. But the return difference is not large, especially when compared to the return premium offered by UK and US stocks. From a portfolio perspective, the higher standard deviation of UK bonds is not worth taking. This suggests a move from long-term bonds to UK bills, which offer higher credit quality and a shorter maturity. The lesson is that holding long-term fixed interest in a portfolio may not pay for itself in terms of expected reward for the high level of risk assumed.