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.
Meeting Investors’ Needs in Emerging Markets Fixed Income
In this paper we profile our capabilities in emerging markets (EM) fixed income and demonstrate how our core EM bond index family is built using principles of accessibility, modularity and flexibility, forming a robust basis for ESG or smart overlays
28 November 2022 | Lydia Hamill; FTSE Russell
Assessing the Impact of 20 Years of SPIVA
“SPIVA” stands for “S&P Indices Versus Active,” and it is the name for a regular series of research reports that compare the performances of actively managed funds to appropriate benchmarks.
26 October 2022 | Tim Edwards, PhD; Craig Lazzara, CFA; S&P Dow Jones Indices
Which Chinese Local Governments Face Greater Fiscal Stress in 2022? / 2022年哪些地方政府财政压力更大？
Which Chinese Local Governments Face Greater Fiscal Stress in 2022?
截⾄ 2022 年 9 ⽉末，全国地⽅政府债务余额 347124 亿元，债务余额同⽐增 20.6%，相较上年末余额增 13.9%。预计本年度地⽅政府债务率整体进⼀步攀升，但积极财政政策驱动下的各省直接债务增速不⼀。
28 November 2022 | Jameson Zuo; Pengyuan
ESG in Action: Linde
This case study highlights the importance of adopting a system-wide perspective on corporate emissions data accounting and reporting while pursuing workable solutions in the journey to net zero.
25 November 2022 | MFS Investment Management
Endowment Funds in Pakistan
Endowment Funds in Pakistan have not fared well. A comparison with leading US endowments offers key lessons.
25 November 2022 | Laraib Mohib, CFA
The Pension Time Bomb
Han Yik, Former Head of Institutional Investors at the World Economic Forum, discusses what he calls the Pension Time Bomb. What options are there to combat this, and why are governments hesitating to take action?
23 November 2022 | Han Yik; FTSE Russell
Survey Report: The Direct Indexing Opportunity 2022
Direct indexing is set to accelerate within the industry. Our findings provide insight into opportunities, obstacles and priorities for wealth management firms.
22 November 2022 | FTSE Russell
Natural Language Processing in Banking: Current Uses
This article will introduce a branch of Artificial Intelligence called Natural Language Processing (NLP) and dive into two popular NLP models, Word2vec and Bag of Words. Subsequently, the article will examine NLP applications in banking use cases like document search, investment analysis, and customer service. Finally, we will end with some key takeaways for banking executives.
22 November 2022 | Kevin Pereira; Rajendra Shroff
Artificial Intelligence in Investment Management — Elevating Client Relationship and Return
AI stands to provide benefits to investment management. But how to identify their values and deploy them more effectively? Find out from ARX Business Model Investment Series now!
21 November 2022 | Kevin Pereira; Rajendra Shroff
The COP27 Net Zero Atlas
Our Cop27 Net Zero Atlas builds on our inaugural report to systematically assess climate targets and mitigation strategies of G20 countries'. It also includes analysis of physical climate risk exposure for each G20 country for the first time.
14 November 2022 | Nicolas Lancesseur; Florian Gallo; Edmund Bourne; Claire Hugo; Jaakko Kooroshy; FTSE Russell
Understanding ESG Investing in Asia-Pacific Emerging Markets
In collaboration with CFA Societies in APAC, ARX organized a closed-door roundtable among industry practitioners to examine ESG investing in emerging markets. Key topics included latest trends, regulations, and technological innovations.
November 2022 | CFA Institute
WEBINAR: Modern Slavery Webinar Series - Tackling Modern Slavery through Investment Management
Presenting to you the Modern Slavery Webinar Series co-organized by CFA Societies Australia and Monash University! This second webinar focuses on how investors can identify and address exposure to modern slavery risks in portfolios.
10 November 2022 | CFA Societies Australia; Monash University; RIAA | Video: 59 mins.
Measuring Board Gender Diversity across S&P ESG Indices
According to numerous studies, having a gender-diverse board is a key indicator of good corporate governance. Using the S&P Global SFDR dataset we examine this metric in the context of the S&P ESG Indices.
19 October 2022 | Kieran Trevor; S&P Dow Jones Indices
Equity Factor Behaviour During the Q3 Market Turmoil
Hear actionable insights on global and regional equity factor performances, sector exposures, rotation drivers and macro sensitivities in the third quarter.
08 November 2022 | FTSE Russell
Finding the Narrative in Markets
In this episode, Richard Peterson, Chief Executive Officer of MarketPsych, discusses how narratives impact financial markets, how our minds influence investment decisions and which types of biases influence professional investors.
07 November 2022 | FTSE Russell
A Trillion-Dollar Tweet / 万亿一推
Last week’s epic rally started around the nadir seen in first COVID outbreak in 2020. But we’re so much better now. Both US and Chinese growth assets victim to a growth slump. Hong Kong short covering.
上周史诗级反弹行情的点位水平肇始于2020年2月新冠疫情首次爆发时的市场最低点。疫情以来，美国的财政和货币政策轮番上阵，而中国则坚持动态清零方针。到如今，中国市场回到了疫情最初的原点，美股也将亦步亦趋。中美成长型资产都深受增长放缓的拖累。被称为“下一个中国”的越南也未能独善其身。港股轧空。但HIBOR的飙升预示着未来数月全球震波渐行渐近，源头很可能来自美国市场。
06 November 2022 | Hao Hong, CFA; GROW Investment Group
The Halloween Effect: Trick or Treat?
Autumn Fall-Crash Pattern - Elevated market volatility and black swan event risk proved scary to most investors as we marked the ominous Halloween festivity.
03 November 2022 | Ron William, CFTe, MSTA; Intensichi
Analyzing High Dividend Yield Strategies in Korea
In this paper, we will take a deep dive into the Korean dividend market and analyze how the Korean high dividend yield strategy has performed historically.
17 October 2022 | Jason Ye; Izzy Wang; S&P Dow Jones Indices
Why Having a Long-term View is Key
In this episode of FTSE Russell Convenes, Wayne Wicker, Chief Investment Officer at MissionSquare Retirement, discusses how to navigate through the current market environment and the key drivers to look out for in the next six to twelve months.
01 November 2022 | FTSE Russell
Fixed Income Indices: From Benchmark to Investment Solution
In this paper, we explore the key trends driving the growth of fixed income passive funds and ETFs.
01 November 2022 | FTSE Russell
Mai! Mai! Mai!
Hot money outflow is at its 2nd worst in history. But these are speculative weak hands. What is left is the strong hands with holding power. Foreign brokers in HK cutting stock positions, while the mainland counterparts holding still.
热钱外流历史次高。但那都是些投机性的市场弱手。大浪淘沙始见金，淘尽之后方见持重有力的市场强手。在港的外资券商正在减仓，而内资券商则咬定青山，按兵不动。港股 ETF 吸引着几乎规模空前的资金流入。尽管恒指还可能进一步下探，但值此非常时期，过度悲观的情绪早已于事无补，并开始与我们的逆向思维相左。
30 October 2022 | Hao Hong, CFA; GROW Investment Group
《投資在「通脹、加息、經濟放緩」時》 投資者教育講座
是次講座一眾嘉賓討論通脹及利率飆升對金融市場的影響，以及探討高通脹及加息周期的投資策略，並提醒參加者如何在動蕩的市場中避險。
13 October 2022 | CFA Institute; CFA Society Hong Kong; IFEC | Video: 1hr 17mins.
The Merge – A Milestone Event in the DeFi Universe
Ethereum went through “the merge” in September this year. What was it about? To learn more, download ARX Business Model Investment Series now!
31 October 2022 | Kenneth Kwong, CFA
A Critical Review of the Business Model Related Literature Universe
The study attempts to undertake a thorough analysis of the literature universe within the realm of business model related research.
31 October 2022 | Dr. Alan Lok, CFA
Tripod for Scaling-up Climate Finance: NDC, NFV, and ESG
Korea submitted the reinforced NDC last year. The realized path so far has been above the target path. The Korean NFV was established this year. The presentation looks at the potential of streaming private ESG investment to public climate finance.
26 October 2022 | Ick Jin, PhD, CFA, CIPM
REIT Watch - S-Reit ETFs continue to see inflows, doubling AUM in 2 years
The combined AUM of the 5 Reit ETFs listed on the SGX has doubled in 2 years, exceeding S$900m (Sep 2022), and representing over half the S$1.7b combined AUM of Reit ETFs in Asia-Pacific ex-Japan globally.
26 September 2022 | Emelia Tan; SGX
Independent Directors in Pakistan - Regulations & Practice
This publication is prepared with respect to independent directors currently serving on boards of various companies in Pakistan. It mainly focuses on their role, responsibility, diversity, selection, remuneration, representation, and board terms.
25 October 2022 | Mohammad Shoaib, CFA; Shahzad Saleem, CFA; CFA Society Pakistan; The Pakistan Credit Rating Agency
A Kaleidoscopic Perspective of the Belt and Road Initiative
Since 2013, China’s ‘‘Belt and Road Initiative’’ (BRI) has grown in number and become increasingly global in scope. Despite these trends, international business (IB) research on the BRI remains limited.
04 July 2022 | Jiatao Li; HKUST Institute for Emerging Market Studies (IEMS)
Contemporary Islamic Finance Practices 2022
Given its growing importance, multiple CFA societies in the APAC region collaborated to conduct a series of Islamic finance webinars, which took a deep dive into the framework, guidelines, and industry landscape as well as emerging opportunities in this increasingly important market segment.
21 October 2022 | CFA Society Bangladesh; CFA Society Indonesia; CFA Society Malaysia; CFA Society Pakistan
India Telecom: 5G Launched Officially
5G telecom services were officially launched in India. We provide our thoughts on the 5G mobile outlook in India and how the major telecom players are positioned.
20 October 2022 | Jonathan Tan; Lakshmanan R, CFA,FRM; Rohan Kapur, CFA; CreditSights
China Property: Investor Meeting FAQs
How do assets managers and banks think about the sales recovery within China property sector and stability of the local developers? Learn more from the interviews CreditSights conducted with clients in Asia, Europe and the US.
20 October 2022 | Nicholas Chen; Sandra Chow, CFA; Nicole Chua; CreditSights
APAC Banks: The Environment Toughens
A review by CreditSights on selected Asian economies and banking systems given the deteriorating global economic outlook.
20 October 2022 | Pramod Shenoi; Lim Ze Hao; Yustina Quek, CFA; CreditSights
Midterm U.S. election preview: Gridlock ahead?
As the US congressional elections in November draw nearer, we highlight past midterm electoral cycles and discuss key issues and potential outcomes relevant to investors.
18 October 2022 | MFS Investment Management
Whose Confidence Is Gold? / 谁的情绪靠谱？
Confidence of various market participants is neutral to contrarianly positive, against a backdrop of better monetary environment. As the 20th Congress proceeds and uncertainties subside, Chinese market will likely consolidate and even stumbling higher.
在信贷环境好转的背景下，各类市场参与者信心数据出现中性至逆向积极的信号。随着二十大的召开和不确定因素的消退，中国股市将很可能将整固，甚至趔趄前行。美股仍是一个重要隐患，并将继续干扰中国市场。
16 October 2022 | Hao Hong, CFA; GROW Investment Group
Demographics Tell the Future
In this episode of FTSE Russell Convenes, Amlan Roy, Founder of Global Macro Demographics, discusses the importance of considering different demographics, the impacts of an ageing population on investing and the demographic shifts he is seeing.
17 October 2022 | Amlan Roy; FTSE Russell Convenes
The Future of Electric Vehicles in Asia
Much attention is being paid to electric vehicles (EVs) in the green transition because the technology already exists to help governments reduce emissions at reasonable costs.
04 March 2022 | Alicia Garcia Herrero; HKUST Institute for Emerging Market Studies (IEMS)
How Can a World Recovery Fund Relieve Developing Countries from Debt...
After a pandemic with major social and economic consequences, emerging and developing countries need to swiftly address a two-pronged policy objective.
04 January 2022 | Alicia Garcia Herrero; HKUST Institute for Emerging Market Studies (IEMS)
Innovation Policy Within the Greater Bay Area: HK and Shenzhen's Cross-Border Regional Innovation System
The innovation policy landscapes in Hong Kong and Shenzhen differ considerably, with Hong Kong’s largely fragmented and duplicative and Shenzhen’s concentrated but less extensive.
04 November 2021 | Naubahar Sharif; HKUST Institute for Emerging Market Studies (IEMS)
Saving Hong Kong
Chinese PPI, Chinese 10-year yield and US NFIB hiring data suggest US inflation has peaked. These are obscure indicators/relationships. But slowing inflation augurs for a US recession – it is not a cause for rejoice.
中国 PPI，十年期债券收益率和美国就业数据表明美国通胀已然见顶，但通胀放缓也预示着美国经济的衰退。不同于美国市场，股债之间的对冲关系在中国仍然行之有效。中国还是一个正常运转的市场，因此其资产价格蕴含的信息应更有前瞻性。中国十年期债券收益率上行，与中概股背道而驰。鉴于中国通胀不温不火，若债券收益率上升意味着增长复苏，那么中概股迟早应迎头赶上。买者自负：其他地缘政治因素也不可小觑。港股严重超卖。尽管美国衰退风险黑云压城，但这里应该有一个交易机会。
09 October 2022 | Hao Hong, CFA; GROW Investment Group
Market Maps: Sustainable Investment Insights - October 2022
Whilst the bounce back in Alternative Energy stocks helped lift green-technology-focused Environmental Opportunities in Q3, it was a headwind for the ESG and Climate focused indexes, FTSE4Good and ESG Low Carbon Target.
10 October 2022 | FTSE Russell
Market Maps: Fixed Income Insights China Edition - October 2022
Chinese government bond returns were positive in the third quarter in local currency terms, but the appreciation of the US dollar reduced yuan-based returns for dollar investors.
10 October 2022 | FTSE Russell
Can Property Save the Day - Again? /全球最大的资产 - 尚能饭否？
Chinese property sector now a zero-sum game and inversely correlates with the overall market. Property easing doesn’t necessarily mean broad market rally.
中国房地产现在已经进入存量博弈；房地产板块变得与整体市场负相关。因此，房地产放宽并不一定意味着市场整体上涨。
25 September 2022 | Hao Hong, CFA; GROW Investment Group
“Chill” about CNY Beyond 7
The CNY weakness reflects deteriorating global fundamentals. Shadow CNY suggests further USD strength and corresponding CNY weakness. A weakening CNY augurs for looming global risks. Stay put.
19 September 2022 | Hao Hong, CFA; GROW Investment Group
Market Maps: Performance Insights (USD Edition) - October 2022
Rising recession risks rocked markets anew in September, intensifying the worst rout for global stocks and bonds in a decade or more.
04 October 2022 | FTSE Russell
Green Equity Exposure in a 1.5°C Scenario
Produced in collaboration with the IIGCC, this paper will inform climate investment decision-making, building the green economy exposure of their equity portfolios and climate benchmarks in line with a 1.5°C temperature scenario.
28 September 2022 | Lily Dai; William Nicolle; Jaakko Kooroshy; Lee Clements; FTSE Russell
Indexing Islamic REITs
Shariah-compliant real estate indices are designed to provide Islamic investors with a wider range of tools to evaluate the performance of Shariah-compliant real estate equity funds and to support ETFs and other index-based financial products.
17 August 2022 | Michael Orzano; S&P Dow Jones Indices
Assessment of the Asset Management Industry in the Philippines
This is the third and last phase of the Society’s study on the Asset Management Industry in the Philippines which covers the UITF, Mutual Fund, and VUL sectors.
23 September 2022 | Arlene Gutierrez; CFA Society Philippines
Investor Series: Derivatives/Structured Notes
The investor series aims to provide basic mechanics of investment products, market convention, and process on how people can invest. This webinar focuses on derivatives and structured notes.
23 September 2022 | Mari Toni Bautista, CFA; CFA Society Philippines
Using Indices to Help Align ESG Goals and Values
Take a closer look at the importance of index construction and underlying data across the ESG spectrum with S&P DJI’s Ben Leale-Green.
24 August 2022 | S&P Dow Jones Indices
Manufacturing-Related Stocks That Have Led Net Fund Flows
iEdge SG Advanced Manufacturing Index constituents have seen net institutional inflows of close to S$10 million in 3Q22 through to 7 Sep, while the Index generated a decline of 4% in total return.
08 September 2022 | GEOFF HOWIE; SGX RESEARCH
Impact Investing for Public Pensions as Asset Owners: A Trial Report on the GPIF “Impact Report”
First, explain the overlapping area of impact investing and ESG investing, and the reasons why public pension funds should consider impact investing. Then discuss what kind of impact assessment should be analysed and disclosed.
07 September 2022 | Ryujiro Miki, CFA; Research Institute for Policies on Pension Ageing (RIPPA) in Japanese
China EV market: 2Q22 Earnings & Outlook for 2H22 Production Ramp
Nio, XPeng and Li Auto reported weaker deliveries and margins in 2Q22 amidst challenges from COVID-19 lockdowns in China, extreme weather conditions, as well as supply chain uncertainties.
09 September 2022 | LIONEL LIN; SGX RESEARCH
WEBINAR: Future of Skills and Learning: Planning Your Career for the Industry of Tomorrow
In this recorded webinar, Rhodri Preece, CFA and Ryan Munson present key findings from the latest CFA Institute Research report, The Future of Work in Investment Management: Skills and Learning. The authors discuss the factors disrupting the investment industry today and how job roles will be affected.
20 September 2022 | CFA Institute | Video: 62 mins.
Schrödinger’s Carbon: Intensity and Paris Alignment
A case study illustrates the importance of considering both point-in-time and forward-looking analysis in understanding ESG index performance results, as well as the value of sector-based perspectives.
28 July 2022 | Maya Beyhan, S&P Dow Jones Indices
About the Author(s)
Senior Director: Scott Lee
Project Specialist: Natalie Yiu
Coordinator: Christy Leung