Practical analysis for investment professionals
23 May 2013

How to Invest in a Low-Yield World

Posted In: Risk Management

Lim Chow Kiat, CFA, group chief investment officer of the Government of Singapore Investment Corporation, the sovereign wealth fund, was given an unenviable assignment at the 66th CFA Institute Annual Conference: Tell us how to invest in a low-yield world — and in so doing, solve one of the greatest mysteries of our current environment.

Lim began by telling the story of how we got here. No, it was not because of the global financial crisis. We arrived in our low-yield world after traveling down a massive, 30-year credit expansion cycle. This was the result of a long disinflation trend stemming from Volcker Effects (named for the former U.S. Federal Reserve chairman); supply shocks caused by a billion Chinese workers competing globally on the basis of low wages; and globalization. (This is what death by a thousand paper cuts looks like, by the way.)

OK, great, you might say, but how should I invest? Lim’s answer is really quite simple: There are no easy answers!  Still, that does not mean that nothing can be done.

Read more on the 66th CFA Institute Annual Conference blog

About the Author(s)
Jason Voss, CFA

Jason Voss, CFA, tirelessly focuses on improving the ability of investors to better serve end clients. He is the author of the Foreword Reviews Business Book of the Year Finalist, The Intuitive Investor and the CEO of Active Investment Management (AIM) Consulting. Voss also sub-contracts for the well known firm, Focus Consulting Group. Previously, he was a portfolio manager at Davis Selected Advisers, L.P., where he co-managed the Davis Appreciation and Income Fund to noteworthy returns. Voss holds a BA in economics and an MBA in finance and accounting from the University of Colorado.

Ethics Statement

My statement of ethics is very simple, really: I treat others as I would like to be treated. In my opinion, all systems of ethics distill to this simple statement. If you believe I have deviated from this standard, I would love to hear from you: [email protected]

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