Showing 1 to 21 of 21 results.
In this series of articles the systematic investment manager, Realindex, highlights a range of topical issues in financial markets and quantitative investing.
Intangible assets are often overlooked in traditional valuation metrics despite being a meaningful measure of ‘firm footprint’. Generally accepted accounting practices often expense rather than capitalise investments into Research and Development (R&D) and marketing.
The two papers we examine look into the historically strong performance (and recent weak performance) of what are known as “sin” stocks; typically those that produce alcohol, tobacco and weapons. “Sin” stocks are usually considered to be those whose activities are dominated by what would be consi...
“There are two related themes currently emerging globally; COVID-19 and the oil supply dispute. They have serious knock-on effects to economic conditions and to financial markets
Stocks we view as expensive (based on Price to Book, Price to Sales, Price to Cash flow and Dividend Yield) such as Microsoft, Amazon and Tencent have run strongly in January as well. At the same time, stocks we view as cheap, based on the valuations mentioned above, have sold off somewhat, but t...
Sales is currently a factor in our Core footprint-weighted portfolio methodology. In this note, we compare Sales against Gross Profit, and discuss the rationale and historical back-test performance of each strategy. We argue Sales potentially provides a biased picture of a firm’s footprint as it ...
“In some of our index focused strategies we can’t divest – so we need to let companies know which issues are important to shareholders.” Find out how investors can enact change from the top down with Realindex Portfolio Manager Joanna Nash.
Recent actions by China in Hong Kong and rising geopolitical tensions between China and the US have resulted in the US taking a range of actions including the enactment of the Holding Foreign Companies Accountable Act. One potential consequence of this Act is the forced delisting of Chinese Ameri...
Just like momentum or quality, ESG can be approached as a filterable factor. Find out how it’s possible with Realindex Portfolio Manager Joanna Nash.
On the surface Value underperformed throughout 2020, but once we remove technology stocks like Tesla and Amazon from the equation, we can see that Value kept up with the broader market. Entering 2021, we are witnessing a strong rebound in Value. How should investors be approaching tech companies?
Discover how our equity managers with one of Australia's longest track records provide capital and income growth by investing in the Australian share market.
Podcast: COVID-19 - The rise of value investing?
This final paper is somewhat shorter than the first two, and simply aims to look a little deeper into whether zombie firms appear in Realindex portfolios, and how a Quality factor acts as a repellent for these stocks. This is more important in Value-oriented portfolios as the potential appearance...
First Sentier Investors is the new name for Colonial First State Global Asset Management. We bring together independent teams of active, specialist investors sharing a common commitment to responsible investment principles. Curious to know more?
Contrary to common misconception, value stocks are not low quality stocks. Good value managers target quality value stocks.The recent underperformance of value is driven off a very narrow base of tech-related growth stocks. After accounting for Tesla, NVIDIA, AMD, Apple and Amazon, we show that v...
What are zombie firms? How can they affect Australian investors?
Is there a problem with zombie firms today? David Walsh, Head of Investments at Realindex Investments explores the effects of zombie firms on the market and the nuances of how we define and understand them.
Addressing the Underperformance in Superannuation: Concerns around the Your Future, Your Super proposal
Realindex Investments explores the key concerns surrounding the Treasury's super reform initiative.
The existence of “zombie” firms is a dangerous and growing problem in the global economy. These are companies that would normally have gone bankrupt or been restructured but have been kept alive by sympathetic credit policy and interest rates which are artificially and extraordinarily low.
Emerging Markets investors have been surprised by the growing dominance of China tech which has brought about increased imbalance. This trend will likely continue which will lead to growing concentration risk as well.
Many asset owners take considerable time and effort in building lists of stocks which they wish to have excluded from their portfolios. Investment managers (like Realindex) implement their investment strategy using these lists as universe exclusions, position restrictions or exposure restrictions.