6 November 2013

Dylan Grice on the Hidden Threats of Inflation and Language

By
Dylan Grice, director of research at Edelweiss Holdings

In his November 2013 Edelweiss Journal article, Dylan Grice of Edelweiss Holdings writes that “the past three decades’ hidden devaluation of money has caused a subtle but significant devaluation of language” (PDF). Using Google’s Ngrams Viewer to track the rise of various buzzwords in the modern financial industry, Grice concludes that the world has changed the definition of “wealth” to mean “money,” not “value.”

This devaluation, according to Grice, increases the challenges facing investors who try to be responsible stewards of capital, especially in an environment where “inflation, whether credit inflation or otherwise, messes things up because it sends false signals.” Read More

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1 November 2013

Mapping the Exchange-Traded Landscape with Deborah Fuhr

By
Deborah Fuhr, co-founder of ETFGI

Exchange-traded products have seen their share of successes and failures in 2013: Although September ended with a record amount of assets invested in exchange-traded funds (ETFs) and exchange-traded notes, an increasing number of firms closed their exchange-traded products in the first half of the year after their offerings struggled to accumulate enough assets under management to cover operating costs. Deborah Fuhr, co-founder of ETFGI, has been tracking these shifts in the exchange-traded landscape as part of her firm’s monthly reports on the industry.  Read More

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22 October 2013

Perspectives on Equity Investing from John Chatfeild-Roberts

By
John Chatfeild-Roberts, chief investment officer and head of the Jupiter Independent Funds Team at Jupiter Asset Management.

When London news outlets need a fund manager’s perspective on developments in the investment world, they turn to John Chatfeild-Roberts, chief investment officer and head of the Jupiter Independent Funds Team at Jupiter Asset Management. FT Adviser asked Chatfeild-Roberts for his thoughts on the resignation of Neil Woodford from Invesco Perpetual, the United Kingdom’s biggest fund manager, and Citiwire Money covered his response to inflationary turmoil in emerging markets at the end of September.

Chatfeild-Roberts is chief investment officer of Jupiter Asset Management, and financial media closely follow the investment decisions made by the company’s flagship fund-of-funds products as they use active management in pursuit of investment returns. Read More

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15 October 2013

Martin Wheatley Pushes for UK Financial Reform

By
Martin Wheatley, CEO of the U.K. Financial Conduct Authority

Since taking on the role of chief executive at the UK’s new Financial Conduct Authority (FCA), Martin Wheatley has been outspoken about implementing new reforms in the financial sector. Shortly before his term began, Wheatley announced that the FCA would be monitoring activity on Twitter as part of their efforts to use “new ideas and new ways” to spot illegal activities.

In early October, Wheatley declared that the FCA is “putting payday lenders on notice” and that “tougher regulation is coming.” In addition to new regulations for payday lenders, the FCA is seeking to regulate several other credit industries. Read More

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2 October 2013

Yves Mersch: Europe’s Banking Union Can Tackle the “Doom Loop”

By
Yves Mersch, executive board member of the European Central Bank

According to Yves Mersch, an executive board member of the European Central Bank (ECB), a banking union is the key to restoring and reviving troubled eurozone banks. At the Bridge Forum Dialogue in Luxembourg on 30 September, Mersch argued that such a union is the principal “cogwheel” in the plans to integrate the region’s economies, lenders, and fiscal policies.

“This crisis has shown that an economic and monetary union cannot function without a banking union,” he said. “We are now building one, from the ground up, to tackle the ‘doom loop,’ curb financial fragmentation, and enable banks to rebuild trust and provide a sustainable supply of credit to the real economy in every country and for every sector.” Read More

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24 September 2013

Charles Robertson’s Emerging Market Insights

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Charles Robertson is global chief economist at Renaissance Capital, an investment bank focusing on emerging and frontier markets. Robertson is often cited by journalists covering emerging and frontier markets, and he was recently quoted in a Bloomberg story about African currencies responding to Fed decisions, an Economist discussion on the ways Africa could be affected by slowing demand from China, and Reuters coverage of the pressure on Nigeria’s central bank.

In 2012, Robertson also used his expertise on cross-border relations to analyze what voting in the Eurovision Song Contest reveals about Europe and its neighbors.

In this video, Robertson shares his observations on what has happened to investor sentiment toward investing in Africa and where he thinks the continent’s GDP will be by the year 2050:

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At the European Investment Conference, Robertson will take part in the Emerging Markets — Spotlight on Africa panel discussion with Clifford D. Mpare, CFA, of Frontline Capital Advisors and Tendai Musikavanhu, CFA, of One Stone Capital Group and Old Mutual Global Index Trackers Limited. Register now to attend the event, and follow this blog for more news and updates.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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20 August 2013

James Rickards discusses Currency Wars

By
James Rickards

James Rickards, author of Currency Wars: The Making of the Next Global Crisis, is a counselor and investment adviser who has been monitoring the international monetary system’s conflicts as they unfold. According to Rickards, capital markets have seen two global currency wars play out within the last hundred years, and a third war is currently being waged.

In this video, Rickards names the perpetrators and victims in the latest round of currency wars. He also identifies two forms of money — one very old, and one very new — that will influence the future of the international monetary system:



Rickards will deliver the closing address of the Sixth Annual CFA Institute European Investment Conference. Register now to hear his presentation in London, and follow this blog for more news and updates about the event.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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16 August 2013

Helena Morrissey on Diversity Driving Company Performance

By
Helena Morrissey

The CFA Institute European Investment Conference is a focused, interactive conference for Europe’s leading investment professionals. The 2017 CFA Institute European Investment Conference will bring portfolio managers, analysts, chief investment officers, and CEOs together in Berlin on 16–17 November.

Helena Morrissey, CEO at Newton Investment Management and founder of the 30% Club, thinks that U.K. corporate boards are overlooking an important source of profitable growth: their own members. Morrissey has noted the link between better corporate performance and gender diversity on corporate boards, using it to advocate for a voluntary, business-led change to increase the number of women board members in the United Kingdom.

The gender imbalance in corporate boards in the United Kingdom and other countries can be addressed either internally, through company initiatives, or by external regulatory requirements, such as quotas. Morrissey has frequently spoken out in opposition to quotas for board membership, stating that quotas undermine the principle of equality and are patronizing to women.

In a July 2013 opinion piece in the Telegraph, “Enough Is Enough — Let’s Leave the EU,” Morrissey used board membership quotas as an example of the “top down, command-and-control, one-size-fits-all approach to business and politics” in the European Union, questioning its ability to effect change. Read More

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12 August 2013

Paul Woolley on the Fallibility of Efficient Markets Theory

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According to Paul Woolley, senior fellow at the London School of Economics and Political Science, the idea that efficient markets reflect fair values has been discredited by capital markets’ past booms and crashes. In a 2009 opinion piece written with Dimitri Vayanos, Woolley argued that “the efficient market hypothesis has beguiled policymakers into believing that market prices could be trusted and that bubbles either did not exist, were positively beneficial for growth, or could not be spotted.”

At the Sixth Annual CFA Institute European Investment Conference, Woolley will be discussing the fallibility of efficient markets theory, sharing his new theory incorporating delegation and agency into financial models. Woolley introduces himself and his topic in the video below:

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Register now to hear Woolley’s presentation in London, and follow this blog for more news and updates about the event.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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21 June 2013

Registration Now Open for the Sixth Annual CFA Institute European Investment Conference

By
Euro Coin on 50 Euro Note Map

It is a difficult time for Europe’s financial markets and the professionals who work in them. The region’s halting steps toward an economic recovery are made more difficult by a challenging global environment, while central banks continue to look for new methods to set a course through uncharted waters. Investors are left wondering which unconventional measures pursued by government and economic policymakers will become part of the new normal.

This fall, CFA Institute is holding its annual European Investment Conference to serve as a forum where members of the financial industry can discuss the best ways of finding new investment opportunities and examining new challenges in the investment landscape along with the persistent market forces that have remained constant over time.

Now in its sixth year, the European Investment Conference is CFA Institute’s flagship event in the region; past conferences have been held in Copenhagen, Paris, and Prague. In November, investment professionals will gather in London, which was recently described by the Economist Intelligence Unit as Europe’s most competitive city and leading financial center, to hear the latest industry developments, learn about emerging opportunities, and discuss key issues of regional and global importance.

At this year’s conference, delegates will hear presentations from government officials, central bankers, business leaders, and accomplished academics, including the following:

  • Sir Winfried Bischoff, chairman of Lloyds Banking Group PLC;
  • Yves Mersch, member of the executive board of the European Central Bank; and
  • Gillian Tett, associate editor of the Financial Times, who will chair the first day of the program.

The range of topics discussed will include macroeconomics, securities valuation, global markets, financial regulation, and private wealth. To get a sense of the ideas discussed at last year’s European Investment Conference, you can review the social media roundup, which includes blog posts and tweets from the event.

The Sixth Annual CFA Institute European Investment Conference, to be held in London on 14–15 November 2013, will include a combination of plenary sessions and focused breakout workshops, along with opportunities for serious investment professionals to network with industry colleagues. You can register to attend the conference and join us to share best practices, voice concerns, build rewarding relationships, and hear different perspectives.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

Photo credit: ©iStockphoto.com/georgeclerk

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