Vol. 19, No. 1, 2021 Russ Wermers This study investigates the impact of active investment management on the efficiency of public security markets. The scholarly literature indicates that active management contributes to market efficiency, thereby providing positive externalities for all investors, including investors in passively-managed funds. Contrary to popular interpretations of Sharpe’s (1991) “active arithmetic,”… Read more
Insight
Towards Replacing the Defined Benefit Plan: Assured Retirement Income Provided by a Liquid Investment Fund
Vol. 18, No. 4, 2020 Miguel Palacios, Hayne Leland and Sasha Karimi Traditional corporate defined benefit (DB) plans provided retirees with constant retirement income, butDB plans have now all but disappeared. While defined contribution (DC) plans now permit low-fee wealth accumulation, the conversion of wealth to predictable nominal or real income during retirement remains opaque… Read more
Introduction to the Special Issue on Machine Learning
Volume 18, No. 2, 2020 Charles Elkan View PDF… Read more
Insights: The Success Equation
Vol. 17, No. 4, 2019 Yu (Ben) Meng “Insights” features the thoughts and views of the top authorities from academia and the profession. This section offers unique perspectives from the leading minds in investment management. [emember_protected for=3-14-15-6 do_not_show_restricted_msg=1] View PDF [/emember_protected] [emember_protected for=2-4-5 do_not_show_restricted_msg=1] [/emember_protected]… Read more
Insights – Complete and Incomplete FinTech Platforms
Vol. 16, No. 2, 2018 Vasant Dhar and Roger M. Stein A major consequence of the Internet era is the emergence of complex “platforms” that combine technology and process in new ways that often disrupt existing industry structures and blur industry boundaries. These platforms allow easy participation that often strengthens and extends network effects, while… Read more
Insights – Automated Investment Services
Volume 15, No. 1, 2017 Burton G. Malkiel Fully automated investment services provide automated investment management. Selected portfolios are low-cost and are rebalanced, tax managed and optimized, consistent with an investor’s goals and risk tolerance. Everything, including deposits, withdrawals, transfers, and reporting, is handled electronically. The substantial advantages made available by technology are enumerated. [emember_protected… Read more
The Road Not Taken
Volume 14, Number 4, 2016 Craig French [emember_protected for=3-14-15-6 do_not_show_restricted_msg=1] View PDF [/emember_protected] [emember_protected for=2-4-5 do_not_show_restricted_msg=1] [/emember_protected]… Read more
Mass Customization Versus Mass Production – How an Industrial Revolution is About to Take Place in Money Management and Why it Involves a Shift From Investment Products to Investment Solutions
Volume 14, Number 3, Third Quarter 2016 Lionel Martellini While mass production has happened a long time ago in investment management through the introduction of mutual funds and more recently exchange traded funds, a new industrial revolution is currently under way, which involves mass customization, a production and distribution technique that will allow individual investors… Read more
INSIGHTS: By the Numbers: 10 Things My Hobbies Have Taught Me About Investing
Volume 14, Number 1, 2016 Vineer Bhansali I discuss ten common themes between non-investment related activities that shed practical and useful light on investing. While readers might not be familiar with these particular activities, I believe that combining analogies from any accumulated skill in intrinsically rewarding activities (also known as hobbies), with a disciplined analytical… Read more
INSIGHTS: Limits on the Level of Demand a Country Can Afford
Volume 13, Number 4, Fourth Quarter 2015 Jack Treynor With home goods (e.g urban services) output equals demand; when demand increases we put older machines back to work. But the real wage depends on the productivity of the marginal home goods plant. Because money prices go up when the real wage goes down, an increase… Read more