In a broad and integrated global equity market, realization of portfolio goals increasingly requires investors to adopt both an appropriate global equity investment strategy and a well-thought-out implementation plan that includes decisions regarding portfolio structure. This structure should enable investors to easily dial exposure up or down among sectors, regions, styles, and capitalization sizes. “Global…
Is conventional wisdom correct in assuming that the small-cap sector of the U.S. equity market is less efficient than the large-cap sector? And what, exactly, defines the small-cap sector? This report seeks to answer those questions and others by sorting through the relevant small-cap indices and the biases of manager databases. It also outlines the…
A detailed discussion of the conditions necessary for investors to consider active management, and the requirements for the majority of managers to outperform the market. For six equity assets classes, we discuss the manager database, popular benchmarks, general bets embedded in active management, and indexing options to develop a framework for evaluating the expected performance…
A primer designed to help investors navigate the often bumpy road of investing in emerging markets equities. Topics covered include rationalizations, concerns, and strategies for investing in emerging markets equities.
Is a booming emerging Europe veering toward an “Asia-Style” crisis?
An examination of the rules-based quantitative strategy of weighting portfolios by fundamentals rather than by market capitalization. The report discusses the major players of fundamental indexing; differences between fundamental- and cap-weighted indices; the debate over whether fundamental indices should be considered true indices; and fees associated with fundamental index exposure.
This report analyzes how quantitative investment practices enhance the investment process and in which types of portfolios they usually flourish.
In all developed markets, but particularly the United States, investors’ bias in favor of domestic equities is irrational and sub-optimal. We recommend that investors` strategic equity allocations be equally divided among the Americas, Europe, and Asia.
Asia beckons western investors, its allure predicated on three compelling attractions: Asia beckons western investors, its allure predicated on three compelling attractions: The continued broadening and deepening of relatively immature capital markets whose development will reflect the expansion of most Asian economies at growth rates substantially faster than those of North America and Europe. Reasonable valuations in…
An overview of emerging equity including valuations, correlations with other asset classes, risks, investment vehicles, and benchmarks. Exhibits cover market capitalization, comparative valuations among emerging countries, and performance data on representative emerging equity managers.