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.
While the current party may end badly, their long-term prospects still look good.
This report uses extensive data to support our conviction that investors should be cautious about firing poorly performing managers that have simply adhered to their strategy during an unfavorable part of the market cycle and whose results fall within the range investors should have reasonably expected.