Retail Fee Premium and its Impact on Fund’s Performance: Observations From SPIVA® Institutional Year-End 2016 Scorecard

The impact of fees on managers’ performance continues to make headlines.  With the most recent round of actively managed fee reductions[1] taking place in February 2017, market participants can benefit from lower fees as managers compete for capital.  In the recently issued “SPIVA Institutional Scorecard – How Much Do Fees Affect the Active Versus Passive Read more […]

Chinese Demand Growth Lifts Every Commodity

Many news headlines point to rising or falling Chinese demand growth as a main influence of commodity performance.  However, there are many other fundamentals like the U.S. dollar and interest rates that drive commodities.  Even in the Chinese market, there are forces besides demand growth like demand for storage and demand for metals to be used as financial Read more […]

Rieger Report: Munis with Equity Like Returns!

Sectors of the boring municipal bond market have seen equity like returns in 2017. However, it is the downtrodden segments of the muni market in the last several months of 2016 that have created the opportunities to generate these “equity like returns.” The S&P Municipal bond Tobacco Index, down over 6.7% in the last three months of 2016  has recorded a total return Read more […]

Financials Gain More Prominence in Latest Low Vol Rebalance

Volatility has been generally subdued so far this year.  In the latest rebalance, the S&P 500® Low Volatility Index’s most significant sector shift was to Financials (adding 5% to bring the sector to 21% of the index).  Allocation in the remaining sectors did not deviate too far from the last rebalance. Technology’s weight, which increased Read more […]

Strong USD Sukuk Issuance in 2017

The U.S. dollar-denominated, investment-grade sukuk market that the Dow Jones Sukuk Total Return Index (ex-Reinvestment) seeks to track has continued to expand.  As of Aug. 10, 2017, the Dow Jones Sukuk Total Return Index (ex-Reinvestment) tracked 73 sukuk with a market value of USD 74 billion, which represented a growth of 20% YTD.  A total Read more […]

Whether the Market Is Overvalued or Not, It Can Pay to Rebalance

Current valuations of U.S. stocks inevitably lead to debate over their prospects for future returns, earnings sustainability, and whether we are in the midst of a stock market bubble.  Some measures indicate the market is richly valued by historical standards, but no one knows what the future holds.  However, one thing is clear—the potential value Read more […]

Exploring Dividends in Peru

What does it mean when we talk about dividends?  When a company pays dividends, it shows that it is generating enough flow and profits, and that it seeks to generate an additional flow to its shareholders. In May 2016, S&P DJI published a research paper entitled “Exploring Liquidity and Dividends in Peru.”[1]  This report identified Read more […]

Energy Posts Its Best July Since 2004

The S&P GSCI Energy Total Return gained 8.1% in July, the most for a July in 13 years, led by petroleum that was up 9.2%.  Finally the fundamentals may be showing the oil market is starting to rebalance with the rest of the commodities.   The S&P GSCI Total Return had its best month this year, gaining Read more […]

Mutual Fund Portfolios: Equal Weight or Cap Weight?

Equal-weighted indices typically outperform their cap-weighted counterparts (although 2017 so far has proven to be an exception to the general rule).  This means that portfolio managers can usually create a performance tailwind by equal weighting rather than cap weighting their holdings. But do they?  One way to assess this question is by using the Herfindahl-Hirschman Read more […]