Press Room

Global debt pile creates new chances in nascent market"(…) Though growing in size, the adoption of fixed income smart beta strategies by investors remains at an early stage of development. A survey of 163 European institutional investors published in September by the Edhec-Risk Institute showed that just 17 per cent of the respondents used smart beta for fixed-income investing. About four-fifths of current users commit less than 20 per cent of their total smart beta exposure to fixed-income. Felix Goltz, research director at Edhec-Risk, says investors are concerned that methods developed for the application of smart beta in equity markets may not translate well into fixed income. (...)” Copyright Financial Times See more Investors call for new products and more innovation in ethical / SRI ETFs"(…) The survey, conducted as part of the Amundi research chair at EDHEC-Risk Institute, looked at the investing habits of 163 European professional and institutional ETF and smart beta investors. According to the results, more than a third (34%) of respondents indicated that they would like to see new developments in ETFs linked to ethical or socially responsible investing (SRI) (also known as Environmental, Social and Governance (ESG)) strategies. (...)” See more Les écoles de commerce se disputent les gloires de la recherche“(…) « Sous la pression des classements internationaux et d’un modèle imposé par les universités américaines, l’enseignant est devenu chercheur de haut niveau et les écoles de commerce ont essayé de suivre le mouvement », raconte Lionel Martellini, professeur de finance et directeur de l’Edhec Risk Institute, qui s’assigne pour objectif de produire des recherches « utiles socialement ». (...)” Copyright Le Monde See more Investors hunger for smart beta fixed income: EdHEC“(…) French business school, EDHEC undergo an annual study, asking ETF and smart beta investors about the European ETF market, smart beta strategies and factor investing. ETF Stream spoke with Felix Goltz, head of applied research at EDHEC, discussing the school’s latest study and what results they concluded. (...)” Copyright ETF Stream See more ETF investors bemoan lack of research for fixed income smart-beta strategies“(…) European ETF investors are "significantly" interested in investing in smart-beta fixed income products but expressed concern about the lack of research in the area, according to a survey conducted by the EDHEC-Risk Institute. The annual report, entitled the EDHEC European ETF and Smart Beta and Factor Investing Survey, found just 17% of the 163 respondents already use smart-beta and factor investing for fixed income. (...)” Copyright Investment Week See more Swiss Life AM France et EDHEC-Risk créent une chaire de recherche sur le rôle de l'immobilier dans les solutions d'investissement“(…) Dirigée par le Professeur Lionel Martellini, Directeur d'EDHEC-Risk Institute et par le Professeur Nikos Tessaromatis, Professeur de finance à l'EDHEC Business School, l'équipe de recherche analysera le rôle de l'investissement immobilier dans les solutions d'investissement. L'objectif est de fournir une analyse exhaustive du rôle des investissements immobiliers cotés et non cotés dans les portefeuilles institutionnels, en mettant l'accent sur leurs contributions non seulement en termes de performance mais aussi de couverture des risques. (...)” Copyright Boursier.com See more Target-date retirement funds miss the mark“(…) A team of researchers from Princeton University in the US and EDHEC, the French business school, have published a study warning that the bond portfolios that target-date funds use are riskier than widely thought. These portfolios are typically composed of short-term bonds that are exposed to market risks (eg, changes in interest rates) and do not offer the long-term certainty about income that many retirees expect. (...)” Copyright Money Week See more Target date funds risk missing the mark for retirees“(…) "Since 2006, the increase of the percentage of respondents using ETFs in traditional asset classes has been spectacular, says the ‘11th EDHEC European ETF and Smart Beta and Factor Investing Survey,’ conducted as part of the Amundi research chair at EDHEC-Risk Institute. (...)” Copyright Financial Times See more TRADITIONAL ASSETS IN ETFS RISE“(…) "Since 2006, the increase of the percentage of respondents using ETFs in traditional asset classes has been spectacular, says the ‘11th EDHEC European ETF and Smart Beta and Factor Investing Survey,’ conducted as part of the Amundi research chair at EDHEC-Risk. (...)” Copyright Benefits and Pensions Monitor See more Tekort aan vastrentende smart-beta ETF’s“(…) "In the world of asset management, the rise of ETFs has passed by few. A survey by the Edhec Risk Institute shows that only 8% of European institutional investors now have no ETFs.. (...)” Copyright IEX Profs See more EDHEC-Risk’s European ETF survey reveals growing demand for smart beta“(…) "EDHEC-Risk writes that this year, the survey also includes a special focus on Smart Beta product development, considering specific client demand in the fixed income field. The survey reveals that since 2006, the increase of the percentage of respondents using ETFs in traditional asset classes has been spectacular: in 2006, 45 per cent of respondents used ETFs to invest in equities, compared with 92 per cent in 2018. (...)” Copyright ETFEXPRESS See more A New Retirement Bond“(…) "Martellini and his colleagues coined the phrase “flexicurity” to define the ideal investment solution for retirees. At heart, most retirement investors want security and a guaranteed stream of income, but they also want the flexibility to adjust their investments and their potential income stream over time. For the retirement-focused portfolio, goals like outperforming other investments or reaching a target asset level are more aspirational than essential.(...)” Copyright Financial Advisor See more Portfolio construction and ETFs“(…) "ETFs represent the next stage of the indexing revolution globally, and they are increasingly becoming the vehicle of choice for investors’ index exposure. The EDHEC European ETF Survey 2017 suggests that 71 per cent of European investors use them frequently for achieving broad market exposure.(...)” Copyright FT Adviser See more Das war das Amundi Forum 2018“(…) "Das Haus brennt!" Mit dieser aufrüttelnden These eröffnete Lionel Martellini, Finanzprofessor an der Edhec Business School und Direktor des Edhec Risk Institute, sein Referat über notwendige Reformen in Bezug auf die Rentensysteme weltweit. Aufgrund wachsender demografischer Ungleichgewichte sowie einem geringeren Produktivitätswachstum drohe eine regelrechte "Rentenkrise", der es zu begegnen gelte.(...)” Copyright Fonds Professionell See more EDHEC ranked in the world’s top 3 business schools for Finance by the Financial Times“(…) "The result further confirms EDHEC’s international high-impact strategy on the global finance industry and its status as the go-to academic institution in the field. Scientific Beta, EDHEC-Risk Institute and EDHEC’s cutting-edge finance programmes are perfect illustrations of this strategy in practice.(...)” Copyright Fenews.co.uk See more Academics come up with replacement for annuities“(…) A pair of academics have come up with a new ‘retirement bond’ concept they claim will solve the looming pension crisis. (…) "We think retirement bonds would be extremely helpful in addressing the needs of investors preparing for retirement." (...) The professors are in the process of setting up a pan-European working group to explore the concept, including economics and policy experts. They are also in meetings with politicians in France, where the retirement landscape is currently undergoing reform.(...)” Copyright FT Adviser See more Disciplined Techniques Needed by Individuals“(…) Individuals need ‘flexicurity’ in retirement solutions and they would benefit from being provided an access to the kind of disciplined liability-driven investing techniques already used by institutional asset owners. Based on this premise, the EDHEC-Risk Institute and Princeton University’s operations research and financial engineering (ORFE) department have created the ‘EDHEC-Princeton Retirement Goal-Based Investing Index. (…)” Copyright Benefits and Pensions Monitor See more Will Selfies stick? Pension bonds are an ingenious idea for providing retirement income“(…) Lionel Martellini of EDHEC, a French business school, and Robert Merton of the Massachusetts Institute of Technology (a Nobel laureate in economics) have come up with an alternative. Workers would buy government-issued bonds while in employment; these would pay no interest until retirement. Over the next 20 years (the typical life expectancy on retirement) bondholders would receive payments comprising interest plus the return of the capital. These would be linked to inflation, or another measure such as average consumption. (…)” Copyright The Economist See more Investment Products and Services Launches“(…) In a new publication entitled “Applying Goal-Based Investing Principles to the Retirement Problem”, EDHEC-Risk Institute and Professor John Mulvey of the Operations Research & Financial Engineering Department at Princeton University outline the shortcomings of existing retirement products, and lay the academic foundations for a new generation of risk-controlled target-date funds (TDFs). (…)” Copyright Planadviser See more How investment can help deal with the pension crisis“(…) Goal-based investment principles grounded on solid academic foundations can actually be used to design retirement investment strategies that meet the needs of individual investors preparing for retirement. It is time to launch a wake-up call before it is too late. Professor Lionel Martellini is a director of Edhec's Risk Institute. (…)” Copyright FT Adviser See more French B-School goes global, focus on entrepreneurship“(…) The research results and products by EDHEC Risk Institute, Scientific Beta and EDHECinfra in financial risk management has been used by world’s leading financial institutes,” says Christophe. (…)” Copyright Education Times See more How EDHEC Business School of France became the world’s best in Finance“(…) A prominent among these is the EDHEC-Risk Institute. Set up in 2001 and led by Martellini Lionel, Amenc Noël and others, it has become the premier academic centre for industry-relevant financial research.(…)” Copyright Financial Express See more Robo advisor emerges as a poverty-stricken alternative See more Pour la création "d'obligations retraite"“(…) Trois professeurs de finance, Lionel Martellini, Robert C. Merton et Arun S. Muralidhar, suggèrent, dans une tribune au « Monde », l'émission d'obligations dont l'échéance et la durée correspondraient aux âges de départ et d'espérance de vie à la retraite.(…)” Copyright Le Monde See more Letter From Brussels: Default guarantee option dominates debate on PEPP“(…) Lionel Martellini, director of EDHEC-Risk Institute in Nice, notes that state pension systems are weakening in most EU countries. Funded systems, as in the UK, are in deficit, while pay-as-you-go schemes, as in France, are being undermined by the severe decrease in the ratio of workers to retirees. Yet he cautions against a debate that focuses only on the merits of guarantees versus life-cycle options when neither provides for income in retirement. Replacement income, not absolute wealth, should be the focus, he stresses.(…)” Copyright IPE See more KAIST holds 'Robo Advisor' latest trends conference with overseas major universities See more Study warns against ignoring factors’ procyclicality“(…) Some types of popular multi-factor investment strategies could fare worse in an economic downturn than investors expect, according to a study from Edhec-Risk Institute.(…)” Copyright Risk.net See more How private and public finance can help us to fight climate change“(…) Awareness of climate risk is also generating demand for portfolio stress-testing, with UniCredit SpA, Allianz and the Industrial and Commercial Bank of China all producing scenario analyses. New and innovative approaches to stress-testing include ‘Bayesian network modelling’ – led by Riccardo Rebonato, Professor of Finance at EDHEC Business School – which offers a logically consistent yet intuitive way to deal with uncertain events.(…)” Copyright World economic Forum See more L’innovation et la recherche au cœur de la gestion factorielle“(…) Nous avons commencé par répondre aux besoins des investisseurs pour des expositions aux six grands facteurs, les plus recherchés, en lançant des ETF monofactoriels utilisés comme des briques d’allocation. Nous avons ensuite développé avec notre partenaire EDHEC Risk des approches indicielles multifactorielles que nous gérons sous forme de fonds ouverts ou de mandats dédiés. Nous avons plus récemment lancé des fonds multifactoriels, en gestion active où la combinaison des facteurs est gérée de manière dynamique selon un modèle propriétaire. Nous disposons donc aujourd’hui d’une offre globale en gestion passive et active pour répondre à des enjeux variés.(…)” Copyright Option Finance See more Quants warn over flaws in machine learning predictions“(…) Another key issue pointed out by the opposition in the debate was that excessive reliance on algorithms could end up influencing market prices in a potentially dangerous way. Riccardo Rebonato, professor of finance at EDHEC Business School, described a feedback effect called reflexivity whereby automated machine learning algorithms could potentially move prices as they try to learn from price data and implement new trading strategies at high frequencies. So the algorithm ends up moving the very prices it was meant to analyse and learn from.(…)” Copyright Risk.net See more USS strike: global pensions crisis is now shaking ivory towers See more The Man Who Outsmarted Casinos – and then Wall Street See more What is the source of revenue for CTA and Commodity Index See more Investors should take into account risk factors See more Unsophisticated Techniques of Equity Factor Investing Still Prevail See more EDHEC-Risk Institute Provides An Academic Framework To Maximise The Benefits Of Factor Investing For Institutional Investors See more Trump’s national security strategy is a welcome shift away from ‘war on terror’ policies See more Equity factor investing calls risk techniques into question“(…) Investors, surveyed by EDHEC- Risk Institute and ERI Scientific Beta, have revealed that there is a contradiction between score-based factor design choices and the statistical beta-based risk analysis. The analysis of the extreme risk of factor portfolios additionally proved to be still ‘fairly basic’ and therefore it did not allow the extreme risks to be appreciated.(…)” Copyright Money Management See more New EDHEC Survey On Equity Factor Investing Calls Risk Techniques Into Question“(…) In a new survey conducted among investment professionals between June and September 2017, EDHEC-Risk Institute and ERI Scientific Beta have analysed the interests and motivations for investing in new forms of equity factor strategies.(…)” Copyright EIN News See more New EDHEC Survey On Equity Factor Investing Calls Risk Techniques Into Question“(…) Professor Lionel Martellini, Director of EDHEC-Risk Institute, said, “We hope that the EDHEC Survey on Equity Factor Investing will enable investment professionals to learn and understand the interests and motivations for investing in these new forms of equity factor strategies. We see from the survey that investors, and especially asset owners, are ultimately aware of the difficulties and the technical progress to be achieved to master dynamic factor allocation. It is EDHEC-Risk’s ambition to keep on producing applied academic research on the subject so as to enhance our collective understanding of the benefits and limits of dynamic approaches to factor investing.”(…)” Copyright Mondovisione See more Why bitcoin may be the new gold for savvy investors See more UPDATE: The surprising reason it might be OK to give in to greed and fear See more Alternative beta: Rational enthusiasm See more EDITORIAL: Used and useful See more How We Run Our Money: FRR See more La gestion d’actifs l’aube d’une revolution See more Volatility fears push investors into factor strategies See more Why investors — and advisers — need to question myths about their performance“(…) The advice investors get from financial advisers is heavily burdened by mythology. That mythology includes many unproven, and unprovable, claims, among them that such strategies as portfolio rebalancing, harvesting tax losses, and dollar-cost averaging can appreciably increase wealth accumulation without risk.Economist and mathematician Michael Edesess is chief investment strategist of Compendium Finance, adviser to mobile financial planning software company Plynty, adjunct associate professor at the Hong Kong University of Science and Technology, and a research associate of the Edhec-Risk Institute. (…)” Copyright MarketWatch. See more Ethical investment is booming. But what is it?“(…) However, a second paper published this year (“Sin Stocks Revisited”, by David Blitz of Robeco Asset Management and Frank Fabozzi of EDHEC Business School) contests these results. It argues that added risk factors such as low reinvestment rates mean that there is no evidence that sin stocks provide a premium for reputation risk. (…)” “(…) However, a second paper published this year (“Sin Stocks Revisited”, by David Blitz of Robeco Asset Management and Frank Fabozzi of EDHEC Business School) contests these results. It argues that added risk factors such as low reinvestment rates mean that there is no evidence that sin stocks provide a premium for reputation risk. (…)” Copyright The Economist Newspaper Limited 2017. See more Investors Can Be Ethical and Still Beat the Market, Study Says“(…) Ethical fund managers don’t have to be envious of the market-beating returns of so-called sin stocks. They should be able to match them without dabbling in vice, according to a study in the Fall edition of the Journal of Portfolio Management. The study debunks the popular theory that shares in the alcohol, tobacco, gaming, and weapons industries outperform because investors shun them, enabling those with fewer moral scruples to earn a “reputation risk premium.” In fact any outperformance is a factor of the profitability of companies in the “sin” industries and the extent of their investments, the authors found. Investors can emulate those returns by looking for similar qualities in more straight-laced business sectors, they said. See more