Professional Articles
The portfolio revolution: the end of classic portfolio theory
The “Modern Portfolio Theory” developed by Harry M. Markowitz in 1952 has been the central building block of portfolio construction for decades and continues to influence our thinking on the composition of efficient portfolios to this day. The allocation models and investment strategies used by the vast majority of investors today are still based on the principles of this more than 70-year-old approach. Markowitz was consequently awarded the Nobel Prize for his outstanding work. It is therefore in no way about fundamentally questioning the model. Rather, it is a question of whether the assumptions, the mechanisms inherent in the model and the conclusions to be drawn from them stand up to scrutiny in view of the latest developments on the financial markets.
Banking study: Data blind flight looms without a strategy
When it comes to collecting and storing data, the financial industry is one of the driving forces. And for good reason, because the smart use of data will be the key to success or failure in the future. But why are banks and capital management companies still finding it so difficult to generate added value from the existing mountain of data? A recent study by VÖB-Service and the management consultancy Cofinpro provides the answers.
The financial sector of all sectors – a first mover in the IT world – has so far held back when it comes to tapping into the data economy for business purposes. In a survey of experts, we investigated the reasons and asked: Why are financial institutions not exploiting their potential? The result: there is neither a lack of money nor a lack of the required raw data. Regulatory guard rails or a lack of expertise were also not identified as the main obstacles.
IRO and ESRS – control through risk governance
IRO stands for Impacts, Risks and Opportunities.
This triad is the central basis of the European Sustainability Reporting Standards (ESRS).
In order to be able to report on the success of their sustainability activities, companies must have implemented a process for identifying, measuring and managing their impacts, opportunities and risks.
This triad also forms the basis of the materiality analysis and enables a comprehensive view of a company’s sustainability activities and the associated consequences.
Effective risk governance plays a central role here, as it links the IRO triad required for external reporting with internal corporate management.
The end of classical portfolio theory
The current article deals with the question of whether the assumptions, the mechanisms inherent in the model and the conclusions to be drawn from them stand up to scrutiny in view of the latest developments on the financial markets.
Author: Dr. Jochen Felsenheimer, Managing Director of XAIA Investment GmbH
Financial sustainability, ESG and value investing
The current specialist article deals with the study “Financial sustainability, ESG and value investing”. It examines how the consideration of financial sustainability in stock selection affects the performance of common investment strategies such as ESG and value investing.
Authors: FIRM editorial team
Professional Articles
The portfolio revolution: the end of classic portfolio theory
The “Modern Portfolio Theory” developed by Harry M. Markowitz in 1952 has been the central building block of portfolio construction for decades and continues to influence our thinking on the composition of efficient portfolios to this day. The allocation models and investment strategies used by the vast majority of investors today are still based on the principles of this more than 70-year-old approach. Markowitz was consequently awarded the Nobel Prize for his outstanding work. It is therefore in no way about fundamentally questioning the model. Rather, it is a question of whether the assumptions, the mechanisms inherent in the model and the conclusions to be drawn from them stand up to scrutiny in view of the latest developments on the financial markets.
Banking study: Data blind flight looms without a strategy
When it comes to collecting and storing data, the financial industry is one of the driving forces. And for good reason, because the smart use of data will be the key to success or failure in the future. But why are banks and capital management companies still finding it so difficult to generate added value from the existing mountain of data? A recent study by VÖB-Service and the management consultancy Cofinpro provides the answers.
The financial sector of all sectors – a first mover in the IT world – has so far held back when it comes to tapping into the data economy for business purposes. In a survey of experts, we investigated the reasons and asked: Why are financial institutions not exploiting their potential? The result: there is neither a lack of money nor a lack of the required raw data. Regulatory guard rails or a lack of expertise were also not identified as the main obstacles.
IRO and ESRS – control through risk governance
IRO stands for Impacts, Risks and Opportunities.
This triad is the central basis of the European Sustainability Reporting Standards (ESRS).
In order to be able to report on the success of their sustainability activities, companies must have implemented a process for identifying, measuring and managing their impacts, opportunities and risks.
This triad also forms the basis of the materiality analysis and enables a comprehensive view of a company’s sustainability activities and the associated consequences.
Effective risk governance plays a central role here, as it links the IRO triad required for external reporting with internal corporate management.
The end of classical portfolio theory
The current article deals with the question of whether the assumptions, the mechanisms inherent in the model and the conclusions to be drawn from them stand up to scrutiny in view of the latest developments on the financial markets.
Author: Dr. Jochen Felsenheimer, Managing Director of XAIA Investment GmbH
Financial sustainability, ESG and value investing
The current specialist article deals with the study “Financial sustainability, ESG and value investing”. It examines how the consideration of financial sustainability in stock selection affects the performance of common investment strategies such as ESG and value investing.
Authors: FIRM editorial team
Professional Articles
The portfolio revolution: the end of classic portfolio theory
The “Modern Portfolio Theory” developed by Harry M. Markowitz in 1952 has been the central building block of portfolio construction for decades and continues to influence our thinking on the composition of efficient portfolios to this day. The allocation models and investment strategies used by the vast majority of investors today are still based on the principles of this more than 70-year-old approach. Markowitz was consequently awarded the Nobel Prize for his outstanding work. It is therefore in no way about fundamentally questioning the model. Rather, it is a question of whether the assumptions, the mechanisms inherent in the model and the conclusions to be drawn from them stand up to scrutiny in view of the latest developments on the financial markets.
Banking study: Data blind flight looms without a strategy
When it comes to collecting and storing data, the financial industry is one of the driving forces. And for good reason, because the smart use of data will be the key to success or failure in the future. But why are banks and capital management companies still finding it so difficult to generate added value from the existing mountain of data? A recent study by VÖB-Service and the management consultancy Cofinpro provides the answers.
The financial sector of all sectors – a first mover in the IT world – has so far held back when it comes to tapping into the data economy for business purposes. In a survey of experts, we investigated the reasons and asked: Why are financial institutions not exploiting their potential? The result: there is neither a lack of money nor a lack of the required raw data. Regulatory guard rails or a lack of expertise were also not identified as the main obstacles.
IRO and ESRS – control through risk governance
IRO stands for Impacts, Risks and Opportunities.
This triad is the central basis of the European Sustainability Reporting Standards (ESRS).
In order to be able to report on the success of their sustainability activities, companies must have implemented a process for identifying, measuring and managing their impacts, opportunities and risks.
This triad also forms the basis of the materiality analysis and enables a comprehensive view of a company’s sustainability activities and the associated consequences.
Effective risk governance plays a central role here, as it links the IRO triad required for external reporting with internal corporate management.
The end of classical portfolio theory
The current article deals with the question of whether the assumptions, the mechanisms inherent in the model and the conclusions to be drawn from them stand up to scrutiny in view of the latest developments on the financial markets.
Author: Dr. Jochen Felsenheimer, Managing Director of XAIA Investment GmbH
Financial sustainability, ESG and value investing
The current specialist article deals with the study “Financial sustainability, ESG and value investing”. It examines how the consideration of financial sustainability in stock selection affects the performance of common investment strategies such as ESG and value investing.
Authors: FIRM editorial team