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NEWSLETTER of May 7, 2021


The following content has been added at finexpert:


Studies > Performance

Neuberger Berman
FIXED INCOME INVESTMENT OUTLOOK: 2Q 2021
The fixed income world is beginning to undergo a multiyear transition as aggressive monetary accommodation and government spending across key economies drive higher near-term economic growth rates. The result could be a shift to higher real rates as output gaps narrow, as well as moderately higher but stable inflation. In our opinion, this bodes well for risky assets, but will likely be accompanied by increased volatility and changing correlations. We outline our views in this report. >more

Studies > Performance

PwC
FAMILY BUSINESS SURVEY 2021
Their solid financial cushion and long-term thinking are benefiting German family businesses during the pandemic: despite high sales losses, the majority are coping with the crisis on their own. Only a small number have had to lay off employees or cut salaries. At the same time, the current pandemic is ruthlessly exposing weaknesses in family businesses. In particular, they have some catching up to do in the areas of digitization and sustainability. These are the key findings of the Family Business Survey 2021, for which PwC surveyed 2,800 family businesses from 87 countries, including around 170 in Germany. >more
 

Studies > Corporate Finance

Deloitte
EUROPEAN CFO SURVEY: SPRING 2021
With strict lockdown measures still in place across many European countries, lingering high levels of COVID-19 infections and a relatively slow pace of vaccinations, it would be easy to be gloomy about European economic prospects. However, CFOs across Europe have shared their views in the thirteenth edition of the European CFO Survey, and their predictions are positive. A new wave of optimism and a renewed willingness to invest is prevalent across Europe, with many companies turning the page on COVID and focusing on the post-pandemic reality. >more

Studies > Corporate Finance

Lazard
QUARTERLY REVIEW OF SHAREHOLDER ACTIVISM – Q1 2021
Lazard's quarterly review of shareholder activism compiles and analyzes data on key activism trends globally. Q1 2021 saw a second consecutive quarter of elevated global activity (53 new campaigns initiated, in-line with Q1 2020 levels) following the pandemic-related downturn of mid-2020. The significant U.S. rebound continues, with 37 new campaigns (up 48% from Q1 2020 levels) accounting for 70% of all global activity. Following a record-setting Q4 2020, activity in Europe pulled back slightly, with only 10 new campaigns initiated. >more

Studies > Accounting

OECD
TRANSFER PRICING GUIDANCE ON FINANCIAL TRANSACTIONS
This report contains transfer pricing guidance on financial transactions, developed as part of Actions 4, 8-10 of the BEPS Action Plan. This report is significant because it is the first time the OECD Transfer Pricing Guidelines includes guidance on the transfer pricing aspects of financial transactions, which will contribute to consistency in the interpretation of the arm’s length principle and help avoid transfer pricing disputes and double taxation. Sections A to E of this report are included in the Guidelines as Chapter X. Section F is added to Section D.1.2.1 in Chapter I of the Guidelines, immediately following paragraph 1.106. The guidance describes the transfer pricing aspects of financial transactions and includes a number of examples to illustrate the principles discussed in this report. >more


Research Papers > Alternative Investments

ASSET MANAGERS: INSTITUTIONAL PERFORMANCE AND FACTOR EXPOSURES
Joseph Gerakos, Juhani T. Linnainmaa, and Adair Morse
2019
Using data on $18 trillion of assets under management, we show that actively managed institutional accounts outperformed strategy benchmarks by 88 (44) basis points on a gross (net) basis during the period 2000–2012. Estimates from a Sharpe (1992) model imply that asset managers’ outperformance came from factor exposures. If institutions had instead implemented mean variance efficient portfolios using index and institutional mutual funds available during the sample period, they would not have earned higher Sharpe ratios. Our results are consistent with the average asset manager having skill, managers competing for institutional capital, and institutions engaging in costly search to identify skilled managers. >more

Research Papers > Alternative Investments

THE TOTAL RETURN AND RISK TO RESIDENTIAL REAL ESTATE
Piet Eichholtz, Matthijs Korevaar, Thies Lindenthal, and Ronan Tallec
2021
We estimate total returns to rental housing by studying over 170,000 hand-collected archival observations of prices and rents for individual houses in Paris (1809--1943) and Amsterdam (1900--1979). The annualized real total return, net of costs and taxes, is 4.0% for Paris and 4.8% for Amsterdam, and entirely comes from rental yields. Our returns correlate weakly with the implied returns in Jorda et al. (2019) and are substantially lower. We decompose total return risk at the individual asset level, and find that yield risk becomes an increasingly important component of property-level risk for longer investment horizons. >more

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