Given Prolonged US Equity Market Dominance, Should Investors Reconsider Existing Overweights to Global ex US Stocks?
No, we believe investors should maintain a modest tilt away from US equities and toward global ex US stocks.
Equities
US Manager Universe Statistics: First Quarter 2019
The median US Mid-Cap Growth Equity manager posted the highest median return for first quarter 2019, returning 19.3%. For the one-year period ending March 31, 2019, the median US Real Estate Investment Trust manager posted the best return (18.8%).
Should Investors Allocate to Public or Private Chinese Investments?
Public and private Chinese equities both present attractive investment opportunities today.
With Brexit Stress Peaking, Should Investors Tactically Increase Exposure to UK Equities?
No, we don’t believe the politics of Brexit are conducive to tactical asset allocation.
Investment Publications Highlights: First Quarter 2019
First quarter’s edition summarizes five articles on the varying role volatility plays in the investment process.
Should Investors Chase the Rally in China A-Shares?
Yes, but only if you can tolerate the volatility.
Emerging Markets Equity Manager Performance: 2018
More than 63% of active emerging markets equity managers underperformed the MSCI Emerging Markets Index gross of fees in 2018, marking the third consecutive year of underperformance. This chart book is our annual summary of the absolute and relative performance of managers that report to our database. This is a companion piece to the US, global ex US, and global equity manager performance chart books already published.
Brexit’s Crescendo and UK Investors: Tuning Out the Noise
Though developments and headlines associated with the UK’s Article 50 negotiations with the EU to exit the trading bloc have been fitful, their impact thus far on the underlying fundamentals of the UK economy and sterling-denominated assets, particularly UK equities, has been moderate. Because Brexit is a political process with two-way tail risks, it warrants close monitoring but is not a good foundation for a tactical investment position By the same token, UK investors should avoid factoring in expectations of specific potential Brexit outcomes into strategic decisions regarding currency exposures.
The Case for Dedicated China Exposure
While we have advised a gradual approach to investing in China, today we believe that investors should take a systematic and comprehensive approach, overweighting Chinese assets relative to their index weights. Looking past the uncertainty and negativity, investors will find a large investment opportunity set, a robust universe of public and private managers, and appealing public equity valuations.
Global Equity Manager Performance: 2018
In 2018, 52% of active global managers underperformed the MSCI World Index gross of fees, with the median manager underperforming by 20 basis points. This marked a reversal from active managers’ strong outperformance in 2017. This is a companion piece to the US and global ex US equity manager performance chart books already published.