Knowledge Center Archive
Knowledge Center Archive
You’ll turn to the Knowledge Center again and again for credible, authoritative analysis, extending beyond the “what” to the “how.”
The Knowledge Center Archive allows you to filter materials by the markets we serve and by material type.
Overcoming Sluggishness: Q4 2014 Global Economic Market ReviewJan152015Article
Fourth Quarter 2014 CommentaryJan92015Article
A series of significant monetary policy shifts took place among major central banks, accompanied by a degree of clarity on the outlook for future changes.
Economic Outlook: Staying Optimistic - Despite All the Good NewsJan82015Article
Amidst slow but mostly positive economic growth, an historic decline in oil prices, near-zero interest rates and the ardent pursuit of unconventional monetary policies by the world’s most important central banks, it is tempting to be clever and assume that the bull market is in jeopardy: If everyone is bullish who’s left to buy?
Investment Fundamentals: CurrencyDec32014Article
The latest in our Investment Fundamentals series. This edition covers how currency promotes economic activity and affects purchasing power.
Investment Fundamentals: Standard Deviation (Volatility)Nov112014Article
Standard deviation, also referred to as volatility, measures the variation from average performance. Within the context of a diverse portfolio, allocations to riskier assets can make sense even for conservative investors, as these allocations can actually reduce a portfolio’s overall volatility.
Behavioral Finance: The Three A's - Availability, Anchoring, and AdjustmentOct272014Article
In our last paper, we explored the biases inherent to heuristics. Now we explore availability, anchoring, and adjustment - shortcuts that are rooted in investor's inclination to project their current frame of reference on situations that are not applicable.
The Promise (and Perils) of Frontier MarketsOct272014Article
Frontier markets are likely to play an increasingly important role in global equity markets in the years ahead. Frontier-based companies enjoy access to some of the world’s fastest growing economies and populations. We believe actively managed frontier-market exposure can benefit patient, long-term investors.
Behavioral Finance: Loss and Regret AversionOct272014Article
According to Prospect Theory, investors tend to qualify gains and losses through the lens of various heuristics (rules of thumb), thus limiting their ability to make reasonable decisions. Loss aversion and regret aversion can drive investors to make inferior decisions through passive behavior.
Video: Q3 2014 Global Economic Market ReviewOct152014Article
Concerns about the magnitude and timing of an interest rate hike in the U.S. combined with geopolitics and global growth concerns to push market volatility higher.
Quarterly Market Commentary - Third Quarter 2014Oct92014Article
Geopolitical developments and the impending reduction of central bank accommodation in major economies coincided with a slowing of growth during the quarter.
Central Bank Policy Shifts Highlight Diverging Bond YieldsSep182014Article
After half a decade of tepid economic recovery marked by low and generally falling bond yields, we are finally seeing some divergence.
Monthly Market Commentary - 2014 AugustSep92014Article
Economic expansion continued to unfold at disparate paces across developed markets. New data showed signs of shifting growth trajectories, putting pressure on central banks to modify current levels of accommodation. Fixed-income and equity markets fared better in August than during the prior month. Corporate bonds led other fixed-income segments and the Americas outpaced other regions for equity performance. Even with somewhat elevated developed-market equity valuations and narrow credit spreads, we see room for markets to move higher and would be inclined to buy on a correction
Behavioural Finance: Rules of Thumb and RepresentativenessJul302014Article
In Behavioural Finance: An Introduction to Human Error, we noted that Kahneman and Tversky were smart academics who found many ideas for their social science experiments in the mistakes that they themselves made as well as the mistakes that their intelligent colleagues and subjects made. Kahneman and Tversky noted some rules of thumb that often lead investors astray.
Second Quarter 2014 Market and Performance UpdateJul122014Article
Uneven worldwide economic growth has resulted in global monetary policy at various stages of ebb and flow. Global inflation may begin to weigh on accommodative central banking. Most developed-market equities continue to see earnings growth. A turnaround in Europe is one of the keys to global market performance in the months ahead.
May 2014 Monthly Market CommentaryJun52014Article
Economic growth showed measured improvement globally, and inflation remained below target in most regions. Most major bond markets—U.S., U.K., Japan and the eurozone—saw government bond yields fall, while global equity markets were again positive. While not as robust early in 2014 as they were last year, we believe equities have held up quite well in the face of political tensions and emerging-market growth concerns.
Quarterly Market Commentary - First Quarter 2014Apr92014Article
•Optimism continued in advanced economies, while emerging economies faced multiple challenges
•Easing of inflation pressures around the world should keep global monetary policies accommodative.
•Global equities reached positive territory by quarter end, while fixed income gained as interest rates generally fell.
An Economic Thaw, but a New Cold WarApr82014Article
Global stock markets bounced higher following a brief dip in the latter part of January, with the U.S. leading the way. The ability of equities to quickly overcome periodic stumbles (in the U.S. and other developed markets, at least) underscores investors’ willingness to assume risk even when economic and geopolitical uncertainties are on the rise. The fact that developed market equity pullbacks remain brief and shallow suggests that the rotation out of cash and fixed-income assets and into stocks is still very much in play.
Risk Parity: The ConceptSep32013Article
Investors are typically counselled to diversify capital across asset classes in an effort to reduce risk. In light of this, it could be something of a surprise to learn just how concentrated a traditionally diversified portfolio may be in terms of its sources of risk.
Investment Fundamentals: Bond Market MathsAug72013Article
In recent years, global central banks have kept interest rates low in an effort to support the struggling global economy. Since hitting multi-generational lows, interest rates (and bond yields) have spiked significantly higher.
April 2014 Monthly Market CommentaryArticle
Economic growth remained mixed across the globe, and inflation was tame in most regions. Most major bond markets—U.S., U.K., Japan and the eurozone—experienced a modest decrease in government bond yields. Global equity markets showed impressive resilience and were again positive. Global equity markets have not been as robust early in 2014 as they were last year, but we believe they have held up quite well in the face of political tensions and emerging-market growth concerns.