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Innovations in Long-Term Capital Management
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Innovations in Long-Term Capital Management

The Practitioner’s Perspective


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Editorial Rating

7

Qualities

  • Analytical
  • Innovative
  • Well Structured

Recommendation

Investment professionals managed approximately $74 trillion in assets internationally in 2014. This large wealth pool, the equivalent of global annual GDP, encompasses retirement portfolios, insurance company investments, foundation funds and the savings of millions of people. Due to slow worldwide growth and low interest rates, the asset management community is grappling with how to generate yield while maintaining an appropriate long-term risk posture. In an astute narrative, based on a sampling of asset owners and managers, the World Economic Forum posits that the investment community needs to reorient its proposition toward a more active investing methodology. getAbstract recommends this authoritative report to financial professionals and investors.

Take-Aways

  • Faced with slow global growth and low interest rates, investment professionals are developing new frameworks for capturing returns.
  • Asset owners, such as pension funds and insurers, are moving away from a passive investing approach toward an increasingly active posture.
  • They are seizing organizational, competitive and comparative advantages in entering new markets; incorporating a risk diversification model rather than an asset diversification directive; and introducing efficiencies into the investment process.

About the Author

The World Economic Forum is an independent global organization that engages leaders of business, politics, academia and society to improve the state of the world.


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