9 Ways to Help Restore Civility in Today’s World

9 Ways to Help Restore Civility in Today’s World

I cannot believe that everyone was shouting in the meeting. No one heard anything and nothing got resolved.


My colleague stopped talking to her cousin because of the person she voted for.

The recent outbreaks of uncivil behavior in the political arena have impacted our everyday experiences, as the comments above testify. But it's time for people to fight back, politely of course, and assert that being uncivil to one another is not the way we want public figures to behave. Nor is it the way we should behave ourselves.

After the terrible events of 9/11 we came together and helped one another at a time of national tragedy.  We saw or heard of acts of incredible kindness, often between strangers.  And you know what?  We liked it! 

Keep in mind that you don’t have to mirror the impolite actions of others. 

There are ways for people to express their differences without resorting to bad behavior. If you want things to change, the change starts with you. Let me stress that: You are the change agent.  

Use these 9 tips to encourage polite behavior in the workplace and your world.

1. Don’t attack back.


Remember that someone else’s bad behavior is no excuse for your own. Though it may feel good to respond, “Well, what do you know, you idiot?” if somebody says something to offend you, it’s not going to build your credibility or accomplish anything. 

2. Use courteous behavior.


It’s hard to be nasty to people who are nice to you.  Keep “please,” “thank you,” and “excuse me” in your vocabulary.  Greet others when you see them. And respond to the greetings of others. If someone says “hello” to you, you must say “hello” back. It is not optional!

3. Avoid inflammatory words.


Using harsh words such as “stupid,” “ignorant,” and “fool” only inflames a situation, and this approach is unlikely to lead to a positive resolution. Cursing at people is just mean, and reflects poorly on the one doing the cursing.

4. Disagree agreeably.


If you have difficulty with someone, talk to the person. Listen to what he or she has to say. You can evaluate an idea without attacking the person who is promoting it. Saying, “I see it differently, and here’s why…” is a lot more productive than screaming at people or calling them names.

5. Acknowledge your mistakes.


Saying to someone, “You’re right. I shouldn’t have said that or done that,” goes a long way in maintaining good relationships.

6. Share, wait your turn, and be gracious toward others.


Help other people when you can. Don’t interrupt. And be considerate when sharing space with others. This includes cleaning up after your meeting and making sure that you return the items you borrowed.

7. Be cautious with humor.


Humor can be an effective communication tool, but it also may cause you to fail miserably, especially in tense or difficult situations. What some people believe is funny may hurt or put down other people, and this invites conflict. 

8. Stop complaining.


If you don’t like something, don’t complain about it to others – do something. Get involved. Join organizations. Politely object. (Additional information on communicating effectively and politely can be found in my new book, The Communication Clinic: 99 Proven Cures for the Most Common Business Mistakes.)

9. Walk away. 


And if you don’t want to do any of the above, you can always avoid hostile or impolite interactions by simply walking away.

Barbara Pachter
Personal Development
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Barbara Pachter is an internationally-renowned business etiquette and communications speaker, coach and author of 10 books, including The Essentials of Business Etiquette: How ... Click for full bio

Alternative Beta Strategies: Alpha/Beta Separation Comes to Hedge Funds

Alternative Beta Strategies: Alpha/Beta Separation Comes to Hedge Funds

Written by: Yazann Romahi, Chief Investment Officer of Quantitative Beta Strategies, J.P. Morgan Asset Management

A quiet revolution is taking place in the alternatives world. The idea of alpha/beta separation has finally made its way from traditional to alternative investing. This development brings with it a more transparent, liquid and cost-effective approach to accessing the “alternative beta” component of hedge fund return and a new means for benchmarking hedge fund managers.

The good news for investors is that the separation of hedge fund return into its components—rules-based alternative beta and active manager alpha—has the potential to shift investing as we know it. These advancements could democratize hedge funds and, at long last, make what are essentially hedge fund strategies available to all investors—even those who aren’t willing to hand over the hefty fees often associated with hedge fund investing.

A benchmark for alternatives


With respect to traditional equity investing, we have long accepted the idea that there is a market return, or beta—but this hasn’t always been the case. Investors used to assume that to make money in the stock markets, one needed to buy the right stocks and avoid the wrong ones. The idea of a market return independent of skilled stock selection seemed ridiculous to most market participants. Yet today, we would never invest in an active manager’s strategy without benchmarking it against its respective beta.

Interestingly, hedge fund managers have been held to a different standard. Investors have been much more willing to accept the notion that hedge fund strategy returns are pure alpha, and that their investment returns are based entirely on the skill of the fund manager. That notion explains why investors have been willing to accept a “two and twenty” fee structure just to access what has been perceived as one of the most sophisticated and powerful investment vehicles available.

In thinking about the concept of beta, consider its precise definition—the return achievable by taking on a systematic exposure to an economically compensated risk. In traditional long only equity investing, the traditional market beta has been further refined as a number of other risks have been identified that are commonly referred to as “strategic beta.” These include factors such as value, momentum, quality and size. But no one ever said that these risk factors must be long-only.

Over the past decade, as more hedge fund data became available, academics began to disaggregate hedge fund return into two components: compensation for a systematic exposure to a long/short type of risk (alternative beta), and an unexplained “manager alpha.” What they found is that a significant portion of hedge fund return can be attributed to alternative beta. That fact has turned the tables on how we look at hedge fund return. With the introduction of the alternative beta concept, hedge fund managers will have to state their results, not just in terms of total return, but also as excess return over an alternative beta benchmark.

Merger arbitrage—an alternative beta example


The merger arbitrage hedge fund style can be used to illustrate the alternative beta concept. In the case of merger arbitrage, the beta strategy would be the systematic process of going long every target company, while shorting its acquirer. There is an inherent return to this strategy because the target stock price typically does not immediately rise to the offer price upon the deal’s announcement. This creates an opportunity to purchase the stock at a discount prior to the deal’s completion. The premium that remains is compensation to the investor for bearing the risk that the deal may fail.

Active merger arbitrage managers can add value by choosing to invest in some deals while avoiding others. Therefore, their benchmark should be the “enter every deal” strategy, not cash. In fact, the beta strategy explains the majority of the return to the average merger arbitrage hedge fund. And it doesn’t stop there. Other hedge fund styles that can be explained using alternative beta include equity long/short, global macro, and event driven. Note that the beta strategy invests in the same securities, using the same long/short techniques as the hedge fund strategy. The difference is that the beta strategy is a rules-based version that can become the benchmark for the hedge fund strategy. After all, if a hedge fund strategy cannot beat its respective rules-based benchmark (net of fees), an investor may be wiser to stick to the beta strategy.

Implications for investors


What does all this mean for the end investor? Hedge funds have traditionally been the domain of sophisticated investors willing to pay high fees and sacrifice liquidity. Alpha/beta separation in the hedge fund world means that investors can finally choose whether to buy the active version of the hedge fund strategy or opt for the passive (beta) version. Hedge fund strategies can be effective portfolio diversifiers. Now, through alternative beta, virtually all investors can access what are essentially hedge fund strategies in a low cost, liquid, and fully transparent form. For investors who haven’t had prior access to hedge funds, this could be welcome news. Not only can investors look at an active hedge fund manager’s strategy and determine how it has done compared to the systematic beta equivalent, they can also invest in ETFs that encapsulate these systematic strategies.

When looking at one’s traditional balanced portfolio today, there are plenty of questions around whether the fixed income portion will achieve the same level of diversification it has provided in the past. After all, with yields still low, there is little income return. Additionally, the capital gains that came from interest rate declines are likely to reverse. With fixed income unlikely to adequately fulfill its traditional role in portfolios, there is a need to find an alternative source of diversification. This is where alternative strategies may help. For investors seeking to access diversifying strategies in liquid and low-cost vehicles, alternative beta strategies in ETF form are one option.

Looking for an alternative to enhance diversification in your portfolio?


For investors looking to further diversify their overall portfolio, JPMorgan Diversified Alternatives ETF (JPHF) seeks to increase diversification and reduce overall portfolio volatility through direct, diversified exposure to hedge fund strategies using a bottom-up, rules-based approach.

Learn more about JPHF and J.P. Morgan’s suite of ETFs here

DISCLOSURE

Call 1-844-4JPM-ETF or visit www.jpmorganetfs.com to obtain a prospectus. Carefully consider the investment objectives and risks as well as charges and expenses of the ETF before investing. The summary and full prospectuses contain this and other information about the ETF. Read them carefully before investing.
J.P. Morgan Asset Management
Empowering Better Decisions
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See how ETFs differ from other investment vehicles, learn how to evaluate them, and discover how ETFs can be used effectively to achieve a diversity of investment strategies. ... Click for full bio