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Catch Alok Agarwal, CFA, CMT, Head - Quant & Fund Manager, Alchemy Capital Management in conversation with Kshitij Anand CFA (ICFAI), MS Finance of ET Markets, as they dive into Alchemy Smart Alpha 250, our large and midcap focused PMS strategy. Discover the essence of our proprietary framework, eQGP, which assesses the strength of both the market and individual companies to create a portfolio suitable with that level of market strength. To learn more about the strategy's performance and investment philosophy, watch the full video here - https://lnkd.in/djs4HBsZ Connect with us to know more https://lnkd.in/dqxBf-xi #alchemycapital #pms #strategy #market #portfolio #investment #alchemysmartalpha250

A new white paper from the Multi-Asset team shows how a well-designed portable alpha overlay strategy with a low correlation to traditional asset class and private market exposures can help provide diversifying, additive returns when asset owners need them most. Read the research: https://on.pru/4bilaBw

Morningstar argues in their ‘Mind the Gap’ study that mutual fund investors poorly time their trades. From 2013 to 2022, their study estimates that poor timing cost investors 1.7% per year or “roughly one fifth the return they would have earned if they had simply bought and held.” Jon Fulkerson, Bradford Jordan, Qing Yan, and I show in a new paper how three methodological choices cause that calculation to misestimate investors’ timing ability. After implementing our recommendations, we find little evidence of poor timing during the same period, with mutual funds investors’ timing costing them only three basis points per year. More details below! https://lnkd.in/gFSpDpat

Read 'Same as it Ever Was' by Bill Smead, CIO of Smead Capital Management: https://hubs.ly/Q02Nn_gp0 Sign up to get advice sent straight to your inbox: https://hubs.ly/Q02Np2Hx0 #FearStockMarketFailure #StockMarketEuphoria #ValueStrategy

How can quant provide targeted solutions to solve investor problems? By partnering with investors to build custom portfolios that solve for a wide array of issues without sacrificing alpha. Read the report courtesy of PGIM Quantitative Solutions: https://on.pru/49Cji6i #BestIdeas

The past year was challenging for active investors, but our disciplined approach helped our strategies. How are we preparing to navigate 2024? For insights from Alain Forclaz and the LOIM Multi Asset team, please read the Q1 2024 issue of Simply put here: https://upl.inc/ondc87 #simplyput #allroads #multiasset <Marketing Communication>

📊 **Navigating the Complexities of Multi-Asset Markets: A Call for Better Tools** Within this article is a great chart showing the interconnections in the multi-asset markets. For financial advisers, it illustrates how ineffective the current deterministic advice process is. Reliance on broad asset classes and growth/defensive exposure metrics to explain the risk and return characteristics emerging from the relationships between these markets is not going to explain to clients the decision you are recommending or why. The cost of the product, likewise, is not going to convey any of this; a cheap multi-asset offer can have very different characteristics from a more expensive offer, yet the advice process will not show that difference. Often, advisers tell me they use broad asset classes and exposure metrics because they are explainable to consumers. The trouble is that broad asset classes have no standards, and exposure metrics have no standards—nearly every adviser has a different understanding. The influence of particular managers often determines interpretation because formal education does not provide an explanation around these concepts or explain that other, better tools exist. It is important to remember that, other than a quickly rectified March 2020, "modern" advice has not been stress-tested. A major stress event will expose the flaws in the current approach and the continued focus on the cost of the product, which will force a reset in thinking. The APRA performance test is of no assistance in this regard either, having huge issues in itself as a tool for comparative analysis. The other issue here is the role of overseas products. Australia is on the radar for many new products as they look for new markets due to overexposure in their home markets. Our focus on cost, broad asset classes, and exposure metrics will not help you one bit with these products. These products are not easily comparable and have very different characteristics. Yet locally, many advisers are relying on outdated tools that fail to capture these nuances. They rely on local marketer representations about these products, even though in their home countries extensive research shows these claims to be wrong. As we move forward, let's advocate for better tools—tools that can truly dissect multi-asset complexities and provide meaningful insights to our clients. Let's embrace innovation and elevate our industry by seeking out solutions that go beyond traditional paradigms. Reliance on the existing approach adds considerable extra cost to the advice process and is actually hurting client outcomes. #FinancialAdvisory #InvestmentInsights #MultiAssetMarkets #APRA #Innovation

Related Content | The Active Management Delusion: Respect the Wisdom of the Crowd Outside a small and shrinking group of extraordinarily talented investors, active management is a waste of money and time, maintains Mark J. Higgins, CFA, CFP. In contrast to this week’s post from C. Thomas Howard, Higgins clinches his argument with the wisdom of crowds theory. https://ow.ly/49HI50SoxK0

With the advent of Consumer Duty in the U.K., the importance of Assessment of Value (AoV) and its support of the Price and Value outcome continues to grow. In this first article of our AoV series, our VP of Regulatory and Compliance, Devin McCune and Product Director for EMEA Data & Analytics, Afzal Amijee, provide a starting point for understanding, implementing, and improving the value oversight review process. See how we’re offering asset managers a compass through the labyrinth of value evaluation: https://lnkd.in/eR8xwac9

Our Director, Chirag Muni, shares invaluable guidance on navigating the mutual fund journey with ET Markets. From the crucial first steps to crafting the right asset mix, Chirag addresses key questions on allotment, timing, exposure, and more. https://lnkd.in/gGCaqCn2