News & Research

Melissa Brown joined Bloomberg Markets to discuss the narrow equity market rally and why equities are doing so well despite an anticipated recession. Additionally, we also talked about the recent trading volume uptick and expectations for the upcoming FOMC meeting.

The collapse of a Californian bank triggered a rapidly-spreading banking crisis, with Europe suffering the brunt of it. European Banks, Financial Services firms and Insurers have fallen more than their US counterparts, while the risk of each one of those sectors in Europe has jumped.

The recent launch of the STOXX U.S. Equity Factor Index, which underlies the iShares U.S. Equity Factor ETF (LRGF), highlights the real-world performance benefits of a factor-based approach that seeks to manage risk relative to a capitalization-weighted benchmark.

Olivier d’Assier, Qontigo Head of APAC Applied Research, speaks in “Bloomberg Daybreak Asia” with Shery Ahn and Haidi Stroud-Watts. He says the message from central banks to investors is clear: “Help is definitely not coming”. He discusses how this will play out in the markets and other risks to sentiment.

Thematic ETFs have seen their biggest decline in assets globally, as assets plunged 6.9 per cent in Q1 driven by negative investment returns.

This paper focuses on creating SDG portfolios that maximize exposure to one, two or all SDGs. The study shows that it is quite possible to create a portfolio that significantly improves the exposure to SDGs without taking on too much active risk. An optimizer can help manage that active risk.

As the outlook for Technology stocks appears uncertain, we look at the risk-management benefits for Korean investors of adding a little DAX exposure to a KOSPI portfolio.

Sustainable investing strategies vary. Some investors, for example, simply want to improve ESG alignment. Others seek to maximize their impact on society, by investing in those companies that contribute the most to certain goals. While the metrics that underlie these approaches have some overlap, there is not perfect correlation, in terms of how metrics are defined, how portfolios are constructed, what is being targeted, etc.

A Qontigo analysis shows that the DAX enlargement contributed to the German benchmark’s diversification, decrease in concentration, stability and market representation, and resulted in relatively limited changes to style exposures. In most cases, those changes were not of significant nature.

In this paper we analyzed four tech-oriented thematic indices’ performance and risk through a factor lens leveraging Axioma’s Worldwide Fundamental Factor Model, and also compared their characteristics to the broad market indices.

ESG integration, sustainability, and impact investing…While there may be overlap in the meanings of these terms, they each represent a distinct approach to “doing well while doing good” in investor portfolios.

Ahead of the Qontigo Summit, Olivier d’Assier analyzes the cost of adapting a portfolio to meet global warming targets using a STOXX Paris-Aligned Benchmark index. The results show that an early but gradual transition can dramatically reduce the market impact and transaction costs.