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Overview

ARX contains more than 100 articles, reports, webinars and videos that qualify for CE credit under the guidelines of the CFA Institute Continuing Education Program. Below is a selection of most recent posts. 

We encourage CFA Institute members to login to the CE tracking tool to self-document these credits.   

You can find more CE content in the "Webinars" section or by clicking on "Research" in the upper left-hand corner of the page and selecting the “Continuing Education” filter.


Target Factor Exposure: Investment Applications and Solutions

Factor portfolio construction typically focuses on selecting stocks with desirable factor characteristics. An alternative approach — tilting — achieves desired increases in factor exposure while maintaining appropriate levels of diversification.

19 February 2020 | FTSE Russell: Andy Dougan | 1 CE

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Of Fogs and Bogs: Does Litigation Risk Make Financial Reports Less Readable

Companies’ financial reports are often deemed to be opaque and difficult to digest, deepening information frictions and impairing stock liquidity. What role does litigation risk play in the clarity and readability of financial reports?

Winner of the CFA Institute ARX Best Paper Award at the 24th Annual New Zealand Finance Colloquium held on 13-14 February 2020 at Auckland University of Technology in Auckland, New Zealand. 

18 February 2020 | Mark Humphery-Jenner, Yun Liu, Vikram Nanda, Sabatino Silveri, Minxing Sun | 1 CE

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The Coronavirus Epidemic: Implications for Markets

The economic and market impacts of the COVID-19 coronavirus may be much larger than those of the 2003 SARS virus. Why? China is a much bigger part of the global economy than it was 17 years ago.

12 February 2020 | MSCI: Zhen Wei, Jun Wang, Thomas Verbraken | 0.5 CE

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The Potential for Quant in the China A-Share Market: A Global Investor's Perspective

The paper takes an objective look at the China A-share market, and with global markets as a reference, attempts to assess the viability and potential challenges of deploying quantitative strategies in China's local market.

5 February 2020 | Eastspring Investments: Ben Dunn, Jie Lu | 1 CE

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2020 ESG Trends to Watch

ESG themes are long-term, but some can emerge with sudden force. Five trends are expected to unfold in 2020: climate change innovation, new terms of capital, re-valuing real estate, transforming workforce, and accountability to new stakeholders.

13 January 2020 | MSCI ESG Research LLC: Linda-Eling Lee, Meggin Thwing-Eastman, Ric Marshall | 1 CE

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The Next Decade: The Ebbing Waves

The report extends a theory about the short-to-intermediate economic cycle into the longer term. In theory, the short and intermediate cycles should join into a conjuncture in which interplay of movements makes up the direction of the economy.

30 December 2019 | Hao Hong, CFA | 1 CE

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Bridging the Gap in Green Bond Standards Between China and the West

Based on the different views of the concept of ecological civilization, the paper identifies major differences in green bond standards between China and the West, and makes suggestions for a better coordinated development of the global green bond market. 

28 November 2019 | Suyang Liu, Zhiting Yun, Ziyue Zhou | 0.5 CE

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Trend Factor in China: A 4-Factor Model for the Chinese Stock Market

The paper proposes a 4-factor model for the Chinese stock market by adding the trend factor to Liu, Stambaugh, and Yuan’s (2019) 3-factor model. The new model strongly outperforms existing factor models in explaining anomalies and mutual fund returns.  

This paper has been submitted to the 2019 Australasian Finance & Banking Conference organised by the Institute of Global Finance and the School of Banking and Finance, UNSW Business School. See all AFBC 2019 submissions.

18 November 2019 | Yang Liu, Guofu Zhou, Yingzi Zhu | 1 CE

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The Impact of Ownership Concentration and Agency Problems on Firm Value

Using data from Korean firms, the study examines the impact of ownership concentration on M&A activity and outcomes, from the point of view of the agency theory. Do the outcomes change if the acquirer chooses a cash payment method?

This paper has been submitted to the 2019 Australasian Finance & Banking Conference organised by the Institute of Global Finance and the School of Banking and Finance, UNSW Business School. See all AFBC 2019 submissions.

20 November 2019 | Seonhyeon Kim, Jin-young Jung | 1 CE

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Costly Information Acquisition and Investment Decisions: Quasi-Experimental Evidence

This study analyzes how information costs affect the acquisition of private information and investment decisions. Using data on Chinese mutual fund managers’ visits to geographically dispersed firm headquarters, it exploits the introduction of high-speed rail lines as a source of quasi-experimental variation in the cost of acquiring information.

This paper has been submitted to the 2019 Australasian Finance & Banking Conference organised by the Institute of Global Finance and the School of Banking and Finance, UNSW Business School. See all AFBC 2019 submissions.

19 Nov 2019 | David Xiaoyu Xu | 1 CE

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China Market Strategy - Outlook 2020: Going the Distance

The leading indicator of China’s economic cycle is peaking, and will likely moderate in the coming months. The swine flu epidemic will boost inflation. Industry leaders will continue to offer opportunities. The US is heading for new highs.  

11 November 2019 | Hong Hao, CFA | 1 CE

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Improving Market Timing of Time Series Momentum in the Chinese Stock Market

A study examines the profitability of time-series momentum strategies on stocks in the Chinese stock market. It shows that such active technical strategies significantly outperform, on average, buy-and-hold strategies.

This paper has been submitted to the 2019 Australasian Finance & Banking Conference organised by the Institute of Global Finance and the School of Banking and Finance, UNSW Business School. See all AFBC 2019 submissions.

6 November 2019 | Yafeng Qin, Guoyao Pan, Min Bai | 1 CE

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Asset Class Switching Behaviour of Australian Superannuation Funds

A study of the switching behaviour of Australian superannuation funds across four broad asset classes shows that smaller funds tend to be active during stable periods while larger funds tend to switch during volatile periods.

This paper was submitted to the 2019 Australasian Finance & Banking Conference organised by the Institute of Global Finance and the School of Banking and Finance, UNSW Business School. See all AFBC 2019 submissions.

19 November 2019 | Emawtee Bissoondoyal-Bheenick, Robert Brooks, Hung Xuan Do | 1 CE

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The Future of Asset Management in China

The FleishmanHillard report examines investors' attitudes and behavior in China and offers an analysis of the liberation trends of the asset management industry.

1 November 2019 | Patrick Yu, Paolo Danese | 1 CE

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Sales Inducements in Asia Pacific: A review of sales and distribution of mutual funds

The report examines regulations and practices regarding sales commissions and fees paid to financial advisers in Australia, Hong Kong SAR, India, and Singapore. It evaluates regulatory initiatives intended to reduce conflicts of interest and improve customer outcomes. 

25 November 2019 | Mary Leung, CFA; Sara Cheng, JD; Piotr Zembrowski, CFA | 3 CE

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Understanding the Investment Fundamentals of Construction and Engineering Sector

The construction industry is being revolutionized by technological advancement. This shift, termed "Industry 4.0" is akin to the changes already happening in the finance and insurance space (fintech and insurtech). Companies are realizing they can enhance product and service delivery through data-based services.

2 October 2019 | CFA Institute | 1 CE

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For more CE content from the series "Understanding Investment Fundamentals", visit the Sector Analysis page.


What Goes Down Must Come Up: Investigating Companies with Negative Book Value

In this paper, we attempted to study the historical performance of US companies with negative book value relative to the broader US equities, as well as to identify the factors that drive the performance of companies with negative book value.

17 July 2019 | Solactive AG | 1 CE

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Reporting of Common Control Combinations in Hong Kong 2013-2015

Many Hong Kong-listed companies are controlled by a family or an SOE. Business combinations often involve companies controlled by the same entity. Under HKFRS, such combinations use a different reporting method than those between unrelated firms.

21 October 2019 | Hong Kong Institute of Certified Public Accountants | 1 CE

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China Icebergs: Forces That Could Reshape the World

This report by Economist Intelligence Unit, sponsored by PineBridge Investments, examines hidden strengths in the Chinese economy—“icebergs”—that existing and potential investors into the world’s second-largest economy should be watching.

2 October 2019 | PineBridge Investments | 1 CE

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Comparing China Green Definitions with the EU Sustainable Finance Taxonomy

This briefing provides a preliminary analysis on China's Green Bond Endorsed Project Catalogue, the Green Industry Guiding Catalogue and the EU Sustainable Finance Taxonomy in terms of their guiding principles, users, classification and screening.

10 September 2019 | Climate Bonds Initiative | 1 CE

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Diversifier, Hedge & Safe Heaven Properties of Cryptocurrencies: The Case Against Asian Fiat Currencies

The hedging property of Bitcoin is limited but reasonably strong for Stellar, Monero and Ripple. Safe haven is a common property among tested cryptocurrencies.

This paper has been submitted to the 2019 “Finance, Property, Technology and Economy Conference” at University of South Australia.

3 October 2019 | Ruzita Abdul-Rahim, Ling Pick Soon | 1 CE

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An Old Merger Arbitrage Technique Ripe for Takeover: Practitioner's Brief

In this Practitioner’s Brief, veteran financial journalist Rich Blake explores so-called toehold variables in the Australian mergers and acquisitions market. A toehold is a holding of between a 5% stake in a company, which is subject to disclosure, and a 20% stake, which should trigger a tender offer. Toehold stakes have been used as signals of a potential takeover.

2 October 2019 | Rich Blake | 1 CE

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Time Horizons and Diversification Benefits of Japanese REITs

The paper assesses the diversification potential of REITs for investors in stock market and real estate. It derives the correlations between J-REITs, direct real estate assets, and stocks, as well as their volatilities, using a model that accounts both for the long-run relationship between these assets and their short-term dynamics. 

This paper has been submitted to the 2019 “Finance, Property, Technology and Economy Conference” at University of South Australia.

25 September 2019 | Damian Damianov, Nigar Hashimzade, Muhammad Zaim Razak | 1 CE

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Green Infrastructure Investment Opportunities: Australia 2019

The report advocates increasing green investment in the real economy to support Australia’s transition to a low carbon economy. It aims to facilitate greater engagement between project owners, governments and institutional investors.

31 August 2019 | Climate Bonds Initiative | 1 CE

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Integrating Low-Carbon and Factor Strategies in Asia

This paper investigates the impact of low-carbon screening on traditional market-cap-weighted portfolios and factor portfolios (quality, value, momentum, and low volatility) across seven Asian markets: Australia, China, Hong Kong, India, Japan, South Korea, and Taiwan.

29 August 2019 | S&P Dow Jones Indices | 1 CE

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Predicting Prepayment Risk in China’s Residential Mortgage Backed Securities (RMBS)

A new semi-parametric prepayment prediction model of China's residential mortgage-backed securities (RMBS) incorporates the country's market and mortgage characteristics. Many factors have highly non-linear effects on the prepayment rates.

10 June 2019 | Pengyuan International | 1 CE

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ESG Integration in Asia Pacific: Markets, Practices, and Data

A new report by CFA Institute and Principles for Responsible Investment highlights best practices in ESG integration in six APAC markets: Australia, China, Hong Kong SAR, India, Japan, and Singapore.

4 June 2019 | CFA Institute | 5 CE

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The Carry Concept in Fixed Income

“Carry trade” originally gained its popularity in the foreign exchange market. This paper presents an in-depth analysis of "carry and roll-down", a comparable concept in the bond market.

31 May 2019 | FTSE Russell | 1 CE

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Investment Governance for Fiduciaries

The book offers fiduciaries ideas that may help them fulfil their duties to beneficiaries and other stakeholders. Asset consultants and investment managers may find it useful in establishing their credibility among fiduciaries and in pitching their services.

22 April 2019 | CFA Institute Research Foundation | 5 CE

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Sustainable Factor Investing

Analysis of the impact of ESG integration on systematic factors in Australian equities shows that simultaneously exploiting ESG scores with quality, momentum and size characteristics outperforms standard factor strategies.

19 April 2019 | John Hua Fan, Lachlan Michalski | 1 CE

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VIDEO: Seminar and Panel Discussion on IFRS 9

IFRS 9 is considered one of the most impactful accounting changes on the horizon particularly for financial institutions and most importantly for the banking sector. Industry experts share their insights.

11 February 2019 | CFA Society Pakistan | 2 CE | Video: 2 hrs 37 min.

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Islamic and Sustainability Equity Investing

Investors do not have to pay a price for Islamic or sustainable investing. Combining Islamic and sustainability investing strategies offers more rewards, particularly during the economic boom, bullish equity markets and subprime crisis periods.

7 February 2019 | Wajahat Azmi, Adam Ng, Ginanjar Dewandaru, Ruslan Nagayev | 1 CE

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About the Author(s)

ARX Editorial Team

Director: Scott Lee
Content manager, Editor: Piotr Zembrowski, CFA
Coordinator: Natalie Yiu

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