Most Recent News & Research
Science-based emissions-reduction targets (SBTs) help verify that a company has embarked on a pathway to reduce its carbon footprint and get aligned with climate action efforts. The inclusion of SBTs in indices provides an efficient solution to investors wishing to adopt a responsible approach in the face of the global warming crisis.
Analytics | Portfolio Risk Management
Multi-Asset Class Risk Monitor Highlights | Week Ended May 7, 2021
Treasury yields fall despite call for higher rates; Dollar weakens as stocks hit record high; As equity volatility continues to fall, interaction with FX rates intensifies.
High volatility stocks fall out of favor; Are new sources of risk creeping into the US market?; Asset diversification soars globally.
Worries about inflation and higher interest rates pressured investor sentiment globally, halting and even reversing its recent rise in most markets. US investor sentiment declined, ending the week with one foot in bearish territory.
Global index rises 4.5% in month amid ongoing expectations for a post-pandemic economic recovery. Gains are led by US and European markets, and by Momentum stocks, which came back in favor after a lackluster first quarter.
On Wednesday, Qontigo’s global index provider STOXX Ltd. announced an unscheduled change to the SDAX Index.
Index | ESG & Sustainability
Qontigo’s ‘Enhance’ Sustainable Index Category – Optimizing ESG Investing
In this post, we explore the second category in Qontigo’s index-based sustainability solutions: our ‘Enhance’ ESG offering. The category is made up of STOXX and DAX indices that aim to maximize the sustainability profile of portfolios, given investors’ needs to balance risk, return and ESG integration.
Stocks rose for a third straight month in April, with the STOXX® Global 1800 Index breaking an all-time high, as investors became more convinced that a post-pandemic economic recovery will take hold.
Analytics | Regulatory Reporting
INFOGRAPHIC: Use This Planning Tool to Hit the Compliance Deadline for the SEC Derivatives Rule
The SEC 18-f 4 Derivatives Rule stipulates all SEC-registered companies to comply with a derivatives framework by August 19, 2022. While it’s more than a year away, the time to act is now.
German yield curve steepens, as inflation edges above ECB target; Risk-free rates surge and euro credit spreads tighten; Portfolio risk continues to fall, but at a slower rate than equity volatility.
Markets climb, as correlations and volatility ease; Earnings Yield style factor underperforms; India market up, as COVID cases soar.
Decomposition of the ROOF Ratios (both Style and Sector variants) show that the main driver of this past week’s increase in sentiment was declining volatility and not a penchant for more risk-tolerant styles or sectors (removing the two risk metrics show a decline in sentiment last week).
Upcoming Events
CFA Webinar – Wednesday webinar at one: How to use a stress test to support FX hedging decisions
In this webinar, Christoph Schon, CFA, will demonstrate how a stress-testing framework can be used to support the decision whether to hedge one’s currency exposure when investing abroad, depending on expected returns and cross-asset correlations.
IPE Webinar – What Gets Measured Gets Done
Join us for an in-depth partnership discussion on the creation and usage of the recently launched iSTOXX® Northern Trust Climate ESG Indices – that address two challenges that professional investors are dealing with in this low yield, high volatility market.
BVI Webinar – Identifying Portfolio’s Exposures To Macroeconomic Risks With Macro Projection Models
The macroeconomy has dominated financial news for much of 2021, driven at least partly by the specter of rising inflation and corresponding back-up in long-term interest rates. But building macroeconomic risk models to quantify, and perhaps mitigate the impact is a daunting and sometimes unproductive pursuit.
