ARX Series
New and Notable
Editor's selection
Overview
ARX receives up to 100 new submissions each month: academic papers, industry research, white papers, market analysis and others. Here is a curated selection of new and noteworthy posts from our institutional and individual contributors.
To browse or search ARX's repository of more than 5,000 posts, select "Research" in the main menu.
Australia Persistence Scorecard: Year-End 2022
Can investment results be attributed to skill or luck? Genuine skill is more likely to persist, while luck is random and fleeting. Thus, one measure of skill is the consistency of a fund’s relative performance.
29 May 2023 | Davide Di Gioia; Tim Edwards; Anu R. Ganti, CFA; Grace Stoddart; S&P Dow Jones Indices
HSHKBIO – Tracking Biotech Companies Listed in Hong Kong
We examine the nature and upcoming changes of the Hang Seng Hong Kong-Listed Biotech Index (‘HSHKBIO’). This index tracks the performance of biotech companies listed in HK, including stocks listed through Chapter 18A of the Listing Rules.
01 Jun 2023 | Hang Seng Indexes Company Limited
The Suitability & Availability of Financial Services for Gig Workers
CFA Society Singapore believes that with the right and appropriate financial products, the variable income workers will have a higher probability of achieving their aspirations and desired retirement sum.
29 May 2023 | CFA Society Singapore Advocacy Team
Serving two purposes: ESG and Investment Return: ESG indices outperforming traditional Japanese market cap indices
Q1 2023 was another strong quarter for FTSE Russell’s Japan ESG flagship index series. The outperformance of the FTSE Blossom Japan Index Series over the traditional market cap index is attributed to the stock selection effect.
24 May 2023 | Atsuhito Mori; Ken Hirose; Johnny Chen; FTSE Russell
A Paris-Aligned Corporate Bond Benchmark
In our paper, we provide an overview of the European Union’s regulatory framework for Paris-Aligned and Climate Transition Benchmarks, before interpreting its implications for fixed income application, noting their distinct design characteristics.
24 May 2023 | Lydia Hamill; Isabelle Wu; FTSE Russell
Outlook 2H2023: This Time is Different / 2023年下半年展望：进则无咎
If the US can avoid a recession, the recovery will continue, and risk assets will perform eventually. Otherwise, the market will take a dive, but then the PBoC will likely ease further to support the recovery.
若美国能躲过衰退，中国制造业和出口势将关山横越。工业利润增速触底，中美消费者信心并肩回暖都暗示着此种情景的可能性正稳步上升。如是，经济全面复苏尚需时日，风险资产也终将有所表现。否则，若美国衰退，市场将先下行，但随后央行很可能会进一步宽松以助力复苏——一如2014年至2015年间所见那般。无论以上两场景哪一个最终出现，此刻都必须屏息凝神，咬定青山。
22 May 2023 | Hao Hong, CFA; GROW Investment Group
The Big Mac on Private Assets: The Revenge of Public Fixed Income
After a decade of substantial growth in the private debt asset class, we believe that the tide has turned with public fixed income now offering an attractive — and less risky — alternative.
20 May 2023 | Benoit Anne; MFS Investment Management
Go Long: Playing a Bigger Game
This article explores the dangers of "long-term washing" and how investors can balance short-term accountability with creating value using a long-term mindset.
12 May 2023 | Vishal Hindocha; Carol Geremia; MFS Investment Management
Optimal Portfolio Spread on the Different Industries in the Philippines
The study aims to investigate whether investing in multiple industries is a sufficient strategy to hedge an investor against systematic risk in the Philippines, especially at a time of crisis (i.e., the COVID-19 Pandemic).
28 April 2023 | Diaz, Timothy Ron David; Griño, Maria Teresa; Santos, Marc Sebastian; Tan, Kier Dominic; Teng, Nika Gabrielle; Valencia, Raphael Luis
Emerging Markets, Emerging Opportunities
The researchers built tangent portfolios from indices from 1) emerging markets, 2)developed markets, and 3) regional markets to explore their associated risks and returns.
28 April 2023 | Marco Antonio S. Adriano; Bianca B. Baldonado; Nathan Gabriel B. Barlis; Aaron L. Gapuz; Patricia A. Prieto; Kiara S. Quintana
Conversation With Dick Pfister, CAIA, Founder & CEO, AlphaCore
In this episode, Bill talks with one of the earliest CAIA designation adopters, Dick Pfister, Founder and CEO of AlphaCore. Pfister’s storied career in finance began as a floor trader at the Chicago Mercantile Exchange. Listen in.
04 April 2023 | CAIA Association
Non-rating Action Commentary: More Low-tier LGFVs Are Issuing Offshore Bonds, with RMB Issuance Predominating / 非评级行动短评：城投离岸债发行主体层级下沉，人民币发行成主流
The offshore bond issuance by local government financing vehicles (LGFVs) has decreased year-on-year in 2023, while the average issue yield continues to rise.
截至 2023 年 4 月底，城投离岸债新增发行额折合约 86 亿美元，共计 89笔，发行规模和发行笔数分别同比下降 52.5%和 30%。但由于 2023 年城投债整体到期规模较大，有一定借新还旧压力。同时，城投的境内融资持续面临着较强监管。因此，我们认为城投仍存在较大的境外融资需求，预计本年城投离岸债发行仍将维持一定规模。
11 May 2023 | Jameson Zuo; CSPI Ratings
Market Maps: Fixed Income Insights (China Edition) May 2023
Chinese spreads tightened versus the G7 in April, as yields fell more, helped by PBoC easing. A further fall in Chinese inflation, to below 1% y/y, gives policymakers more room to boost growth.
09 May 2023 | FTSE Russell
S&P Kensho New Economies Commentary: Q1 2023
U.S. equities posted positive returns across the market cap spectrum in Q1 2023, with the S&P Composite 1500® up 7.2%. The rise, however, was bumpy with the biggest U.S. bank default since 2008, which also briefly spread to Europe.
18 Apr 2023 | S&P Dow Jones Indices
Building a Bear-Proof Portfolio
The focus of this research is to create a portfolio of equities that is proven to be resilient to market downturns, and also performs well after a bear market.
28 Apr 2023 | Aiskhylos A. Akiyama; Gabriel Martin Lao A. Chu; Ryan Jacob T. Gatchalian; Vicente Luis M. Llave; Lance Jason T. Teh
A Study on the Inclusion of an Actively Managed BTC to a Passive Fund
This study aims to discover if the addition of cryptocurrency as an active portfolio to a portfolio containing undervalued stocks within the PSEi index would generate greater expected returns than a portfolio containing stocks from the index alone.
28 Apr 2023 | Liam Co; Portia Doragos; Camille Esteban; Nathan Fernandez; Ysabelle Ngo; Reich Tiamson
Government Securities of Bangladesh: Brief Overview and Challenges in Achieving Vibrant G-Sec Trading on DSE
In this report, we provide a brief overview of Bangladesh's Government Securities and examine the challenges that stand in the way of achieving vibrant trading of G-Sec on the DSE.
24 Apr 2023 | EBL Securities Ltd.
Market Maps: Equity Factor Insights - April 2023
Quality was the star performer in most markets in the volatile Q1, as the banking-sector scare in March drove a massive rotation into stocks viewed as less vulnerable to the possible economic and credit-market fallout.
24 Apr 2023 | FTSE Russell
HSCEA Offers More Comprehensive China Coverage
In late August 2022, the Hang Seng Stock Connect China Enterprises Index (‘HSCEA’) was launched. The 80 constituent companies consist of 46 companies from the Hang Seng China Enterprises Index (‘HSCEI’) and 34 largest market cap A-share companies.
20 Apr 2023 | Hang Seng Indexes Company Limited
Exploring Fixed Income: Seeking the Silver Lining to the Clouds of 2022
MFS fixed income experts review the dynamics driving yields and what investors should be thinking about across the global fixed income markets over the next year and beyond.
17 Apr 2023 | Benoit Anne; Bradford Rutan, CFA; MFS Investment Management
The Renaissance of Active Management
MFS CEO Mike Roberge discusses the shifting dynamics and volatility of today's marketplace and why active managers are best positioned to tune out the short-term noise and identify those things that drive long-term value.
13 Apr 2023 | Michael W. Roberge; MFS Investment Management
HSI Volatility Index - A Useful Tool to Measure Market Volatility
With an objective to measure the 30-calendar-day expected volatility of the Hang Seng Index (‘HSI’), the Hang Seng Indexes Company launched the HSI Volatility Index (‘VHSI’) in 2011.
13 Apr 2023 | Hang Seng Indexes Company Limited
ACCA Global Talent Trends 2023
Recent ACCA Global Talent Trends Survey 2023 sheds light on pressing issues faced by accountancy professionals worldwide. Download to learn more.
13 Apr 2023 | ACCA
Tracking Quality Dividend Growers in Pan Asia
S&P DJI’s Rupert Watts & KraneShares’ Brendan Ahern explore how the S&P Pan Asia Dividend Aristocrats Index tracks quality dividend growers in Pan Asia and a range of potential applications for these defensive yield generators.
30 March 2023 | Rupert Watts; Brendan Ahern; S&P Dow Jones Indices
SFC's Consultation Paper on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the Securities and Futures Commission
The CFA Institute and CFA Society Hong Kong jointly responded to SFC’s consultation on proposed regulatory requirements for virtual asset trading platform operators. Download to read more.
12 Apr 2023 | CFA Institute; CFA Society Hong Kong
Market Maps: Sustainable Investment Insights - April 2023
Sustainable investment (SI) strategies broadly outperformed the market in Q1 2023. The strongest performance came from the green economy focused Environmental Opportunities (EO) strategy, which was the biggest underperformer in 2022.
11 Apr 2023 | FTSE Russell
Bangladesh Cement Industry Overview
The cement industry's long-term demand outlook remains positive, with higher single-digit to double-digit expected growth over the next five to ten years owing to rising urbanization rate, rapid real estate development and government mega projects.
09 Apr 2023 | EBL Securities Ltd.
Market Maps: Fixed Income Insights (China) - April 2023
Sweet spot for China IG credit and government bonds created by low inflation. Get the latest insights on the Chinese fixed income market.
04 Apr 2023 | FTSE Russell
Exploring the Path to Net Zero in China’s Greater Bay Area
Priscilla Luk of S&P DJI joins Dr. Qu Kang of Bank of China Hong Kong to discuss how indices can help inform investors looking to play a role in the regions net zero goal, and what these developments could mean for the potential opportunity set.
31 March 2023 | Priscilla Luk; Dr. Qu Kang; Nadja Jiang; S&P Dow Jones Indices
Understanding Negative Risk-Return Trade-offs
This is an academic paper that empirically and theoretically helps better understand several related asset pricing puzzles - Why do risk premia react negatively to stock market uncertainty shocks? Why does volatility risk premium predict returns?
17 Feb 2023 | Aoxiang Yang
WEBINAR: Upskilling with the Enhanced CFA Program
In this webinar, our expert panel examined the latest hiring trends and sought-after skills in the finance industry.
29 March 2023 | CFA Institute | Video: 1hr 12 mins.
Exploring the Case of Farm RETIS in Pakistan
This piece is based on Pakistan’s two main sectors: Agriculture/Farming and Real Estate. A case is being made for launching Farm REITs in Pakistan as it offers the best combination to achieve multiple objectives for capital markets and economy.
29 Mar 2023 | Laraib Mohib, CFA
The Draft of New Revision G20/OECD Principles of Corporate Governance
G20/OECD Principles of Corporate Governance was updated this year. Many Asian countries are following these principles. In this workshop, we discussed about the background, opinions from investors, and the situation of Asian countries.
28 Mar 2023 | Chie Mitsui
CAIA Association & ComplianceAsia: APAC’s Compliance & Regulatory Landscape
APAC’s Compliance and Regulatory Landscape continues to evolve. Watch to hear from ComplianceAsia’s Founder and CEO, Philippa Allen, and CAIA’s APAC Managing Director, Jo Murphy, as they shared insights on core themes impacting the field.
27 Mar 2023 | CAIA Association; ComplianceAsia
FSRG Briefs - Green Finance
An update on characteristics and current trends in markets for green bonds, green and sustainability linked loans and green mortgages, with particular attention to Hong Kong's role.
21 Feb 2023 | Alexandra Tracy; David von Eiff; Phoebe Chan; Financial Services Research Group
Conversation with Troy Prince, Founder and CEO, Wall Street Bound, Inc.
In this episode, Bill chats with Troy Prince, CEO and Founder of Wall Street Bound – a New York City-based nonprofit finance education and training organization.
24 Mar 2023 | CAIA Association
Conversation with Dr. Margaret Cullen of Think Governance, Ltd.
In this episode, Bill welcomes Dr. Margaret Cullen to the discussion about all things governance. A preeminent person in the field of governance in Ireland, Dr. Cullen brings fascinating insight into the world of corporate and investment fund admin.
24 Mar 2023 | CAIA Association
FSRG Briefs - Virtual Assets
Overview of the current state of the market for virtual assets in Hong Kong, covering legal and regulatory frameworks, fund management, trends and opportunities, plus a snapshot of the development of central bank digital currencies.
16 Feb 2023 | Jason Chan; Financial Services Research Group
Retail Investor Survey - Index Strategies: 2023's Untapped Opportunity
The results of FTSE Russell's inaugural wealth survey offer an abundance of good news for financial advisors, with U.S. retail investors looking to increase their investments in index strategies in 2023.
20 March 2023 | FTSE Russell
WEBINAR: Up your ESG Game: Plugging the Talent Gap
In this webinar, key topics included the Certificate in ESG Investing, government support, and employer recognition.
14 March 2023 | CFA Institute; CFA Society Hong Kong | Video: 61 mins.
The Big Mac on Fixed Income Opportunities
The case for fixed income has become much stronger over the past year, and, in our view, there are compelling opportunities across the global fixed income universe that could support a range of investment objectives.
9 March 2023 | Benoit Anne; MFS Investment Management
Corporate Governance Issues Relevant for the REIT Business Model
Our latest publication examined corporate governance practices within the APAC REIT industry.
6 March 2023 | Dr. Alan Lok, CFA
Blockchain – The Underlying Technology of Cryptocurrency
Blockchain technology has potential beyond crypto. Discover its characteristics and use cases in our latest article now!
6 March 2023 | Kenneth Kwong, CFA
About the Author(s)
Senior Director: Scott Lee
Project Manager: Natalie Yiu
Coordinator: Christy Leung