The Guidance Gap - An investigation of the UK's post-RDR savings and investment landscape

In 2006 the Financial Services Authority (FSA) launched the Retail Distribution Review (RDR) to reconsider the way in which financial advice is provided to retail investors and savers. One major recommendation was that independent advisers should charge an explicit fee for their advice. This research looks into the willingness of UK retail savers and investors to pay for financial advice, and the implications for the large number of people research suggests would be unwilling.

Updated: 17/10/2013
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Views: 3,245

A simple formula for optimal management of individual pension accounts.

This research considers optimal investment for an individual pension savings plan in receipt of gradual contributions against which one cannot borrow, using expected power utility as the optimality criterion.

Updated: 25/09/2013
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Views: 1,543

Credit Suisse and Cass Business School Launch New Multi-Asset Indices

Credit Suisse has launched a series of investable indices designed to provide an efficient and cost-effective way to gain exposure to a multi-asset class investment strategy. The Trend Master Index series uses a trend-following strategy developed in collaboration with leading academics at Cass Business School to offer equity-like returns with significantly-reduced volatility.

Updated: 22/10/2014
Comments: 1
Views: 2,499

The Trend is our Friend: Risk Parity, Momentum and Trend Following in Global Asset Allocation

An examination of the effectiveness of applying a trend following methodology to global asset allocation between equities, bonds, commodities and real estate.

Updated: 26/07/2013
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Views: 5,701

Cass and Unigestion - Private Equity & Investment Management briefing - 1 May 2013

As a result of the recently established collaboration between Unigestion, the boutique Swiss Asset Management and Cass Business School's Centre for Asset Management (CAMR), this Breakfast Briefing Series is an opportunity for the academic world and the investment management world to discuss and debate investment methods and techniques, in theory and in practice.

Updated: 25/04/2013
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Views: 2,109

The Sale of Price Information by Stock Exchanges: Does it Promote Price Discovery?

An essential function of securities markets is to discover asset values. The function is critical for an efficient allocation of capital in the economy, as better price discovery in the stock market translates into better capital allocation decisions. For this reason, regulators and academics often see the maximisation of price discovery as an extremely important goal. Market design depends in large part on the decisions of stock exchanges and stock exchanges themselves are now for-profit firms. Their income derives from trading revenues and increasingly from the sale of information on prices. In this paper, we show that the efficiency of price discovery is, among other factors, determined by the fee charged by exchanges for price information.

Updated: 06/03/2013
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Views: 6,702

Venture Capital meets Contract Theory: Risky Claims or Formal Control?

This paper develops a financial contracting model to investigate the allocation of control and cash flow rights attained through contractual covenants in Venture Capital deals. It argues that an innovative startup should seek to limit the VC's control rights when arranging a riskier claim, so as not to stifle entrepreneurial initiative. This research challenges the standard assumption that greater control rights should be assigned to such a venture.

Updated: 06/03/2013
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Views: 4,784

Why managing a successful pension scheme is a bit like managing a successful football team.

What are the similarities between a defined benefit pension plan and a football team? On the face of it there may not seem to be many. After all, the football world is populated by overpaid, badly behaved, play acting prima donnas. A far cry from the sober and serious world of defined benefit pensions, where trustees devote huge amounts of their time in the interests of others, for little of no financial reward. However, Professor Andrew Clare draws some interesting analogies between the two.

Updated: 05/12/2012
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Views: 2,668

Strategic Default and Equity Risk Across Countries

When a firm is in financial distress, its shareholders and debt holders may benefit from a debt renegotiation to avoid an inefficient bankruptcy or liquidation. The prospect of a debt reduction through a renegotiation may, however, induce shareholders to default even if the firm is solvent. The view that shareholders may default for strategic rather than for solvency reasons has proved useful in understanding, among other things, the theoretical determinants of corporate bond spreads, dividend policies, the optimal debt structure, and the valuation of debt and equity.

This paper asks whether the option of shareholders to default strategically on the firm's debt explains differences in firms' equity risk across countries. It claims that the risk of equity should be lower for firms that operate in countries where the insolvency procedure favours debt renegotiations

Updated: 22/10/2014
Comments: 1
Views: 4,950