A part of Watch Media

AMWatchFriday27 January 2023

  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
08/04/2022at 09:05

Making the most when markets offer the least

AQR Capital Management’s Principal Antti Ilmanen tries to tackle the low expected return challenge in a new book.
Antti Ilmanen, Principal at AQR Capital Management, in 2019 during the Nordic CFA Investment Forum. | Photo: AMWatch / Søren Rathlou Top
by SØREN RATHLOU TOP

Across the world, investors are facing the challenge of how to cope with a future where return expectations will likely be lower than their historic averages.

AQR Capital Management Principal Antti Ilmanen has written a new book that tries to address the challenges faced by investors globally. The book is titled Investing Amid Low Expected Returns: Making the Most When Markets Offer the Least.

“In the face of today’s pressing low-return challenge, it is important that investors have an understanding of the evidence-based investment approaches available to help improve their long-term returns,” Ilmanen says in a press statement.

“Furthermore, I hope this book provides readers with the ability to invest with serenity – even in harsh financial conditions – and gives them an appreciation for the crucial role discipline, humility and patience play in the world of investing,” he adds.

Ilmanen has more than three decades of experience in financial markets and has won numerous awards throughout his career. AMWatch met the renowned financial market expert in 2019 during the Nordic CFA Investment Forum ahead of his presentation The Low Expected Return Challenge and the Nordic Answers.

”I think that the low expected return challenge is serious and even underappreciated because we haven’t experienced real pain from it yet. It will become sort of a generational challenge and, as an investor, you will need to modify your expectations for the future,” Ilmanen told AMWatch.

”When markets don’t offer returns, investors need to investigate other ways to build a properly diversified way to enhance returns,” Ilmanen said during the interview.

Throughout the book, readers will find extensive empirical evidence for the ingredients that make up an effective portfolio and a discussion of many of today’s most prominent investment topics, such as illiquid investments, market timing, ESG investing and factor investing, the statement reads.

The book concludes by reviewing how to utilize portfolio construction, risk management, and cost control practices to build a portfolio that can succeed in the challenging market environment that lays ahead.

“The past ten years challenged many investment beliefs once considered conventional investment wisdom, and reinforced often-overlooked and underappreciated investing practices,” comments AQR Managing Principal Cliff Asness and author of the book’s foreword.

“Antti’s new book authoritatively covers it all. It is a must-read for any investor looking for a blueprint to overcome the unpleasant challenge of markets having become ubiquitously more expensive over the past decade.”

Institutional investors underestimate risk, warns AQR

AQR Principal sheds light on different paths for investors to meet the challenge of lower expected returns that is about to unfold

Related articles:

  • Daniel Villalon, an AQR Principal and Global Co-Head of the Portfolio Solutions Group. | Photo: PR / AQR Capital Management

    Institutional investors underestimate risk, warns AQR

    For subscribers

  • AMWatch meets Antti Ilmanen ahead of his presentation entitled "The Low Expected Return Challenge and the Nordic Answers" at the first Nordic CFA Investment Forum. | Photo: AMWatch / Søren Rathlou Top

    AQR Principal sheds light on different paths for investors to meet the challenge of lower expected returns that is about to unfold

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Thomas Borberg/Ritzau Scanpix
Responsible Investing

Dane's equity holdings shrank by 9% in 2022

Danish investors’ total holdings of equities receded by DKK 57bn (EUR 7.7bn) over last year, new figures from Denmark’s central bank show.
  • Danes change pension companies more frequently than Swedes
  • AP Pension CIO craves more nuance in debate on alternatives

For subscribers

Foto: Shannon Stapleton/Reuters/Ritzau Scanpix
AMNews

Investors are missing earnings data after 2022 IPO collapse

For subscribers

Maunu Lehtimäki, CEO of Evli. | Foto: PR Evli.
AMWatch

Alternative sales grow and net flows start to stabilize at Finland's Evli

For subscribers

Speed is of the essence when launching new investment products, CFO Masih Yazdi says. | Foto: PR / SEB
Fund Management

SEB aims for speedy product launches to make up for huge AUM drop in 2022

For subscribers

Karl C. W. Mathisen fills position as CEqO at Folketrygdfondet on Feb. 1. | Photo: Folketrygdfondet
People

Folketrygdfondet finds new head of equities in own ranks

For subscribers

Michael Probst/AP/Ritzau Scanpix
Responsible Investing

Global clean-energy investments match fossil fuel for the first time

For subscribers

Further reading

Maunu Lehtimäki, CEO of Evli. | Foto: PR Evli.
AMWatch

Alternative sales grow and net flows start to stabilize at Finland's Evli

In 2022, the sales of Evli’s alternative investment products saw notable growth with fee income from this product range increasing by 50%. CEO Maunu Lehtimäki evaluates the company’s annual results.

For subscribers

Storebrand Fonder CEO Åsa Wallenberg considers sustainability a guiding principle for the company. | Foto: Fredrik Hjerling
Fund Management

Storebrand Fonder provides more than three-quarters of Swedish fund inflow

The fund manager contributed the lion’s share of net inflow to the Swedish fund market last year – SEK 14.5bn of a SEK 19bn total. Sustainability is the key to the company’s investment policy.

For subscribers

Jon Johnsen, CEO at PKA. | Photo: Pr/pka
Pension

PKA CEO urges tighter climate rules for banks and pension firms

While most CEOs dread increased regulation, the Danish pension fund’s chief recommends stricter climate rules for financial businesses.

For subscribers

Latest news

  • Two more pension firms joins the green club in Swedish sustainability ranking – 16:01
  • Investors are missing earnings data after 2022 IPO collapse – 15:07
  • Dane's equity holdings shrank by 9% in 2022 – 14:48
  • SEB aims for speedy product launches to make up for huge AUM drop in 2022 – 10:42
  • Alternative sales grow and net flows start to stabilize at Finland's Evli – 10:27
  • Folketrygdfondet finds new head of equities in own ranks – 09:37
  • Global clean-energy investments match fossil fuel for the first time – 07:50
  • Here is how Norwegian fund managers performed in 2022 – 26 Jan
  • Morgan Stanley fines its bankers over messaging breaches – 26 Jan
  • Slight recovery in SEB’s AUM in fourth quarter – but outflow continues – 26 Jan
See all

Jobs

  • PenSam søger en jurist med interesse for den finansielle sektor

  • Porteføljemanager til danske ejendomme i PenSam

Watch Jobs

  • Business Change Manager til implementering af fremtidens togs uddannelsesprojekter

  • Regnskabs-/økonomichef

  • Business Intelligence Specialist

  • Business Controller til DAHL Advokatpartnerselskab i Jylland

  • Centerdirektør til Sønderborg

See all jobs

Jobs

  • PenSam søger en jurist med interesse for den finansielle sektor

  • Porteføljemanager til danske ejendomme i PenSam

See all jobs

Colophon

AMWatch
Search

Sections

  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Sitemap
  • RSS feeds

Editor

Anne Louise Houmann

alh@amwatch.dk

Tel.: +45 2830 5142

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7491

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7491

Jobs

Subscription

Try AMWatch or get an offer for a subscription meeting the exact needs of you or your company.

amwatch@infowatch.dk

Tel.: +45 7077 7491

Learn more about subscriptions here

Address

AMWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8382

Guidelines

  • Privacy Policy

Copyright © AMWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
AMWatch

Google ChromeMozilla FirefoxMicrosoft Edge