Tag Archives: U.K.
Balancing the Scales in U.K. Equity with the S&P 500
Our recent paper Why Does the S&P 500® Matter to the U.K.? argues that the S&P 500 presents an opportunity for U.K. investors to diversify their revenue exposure and sector weights across geographies. Since British investors typically suffer from a substantial home bias, such diversification presents an opportunity to improve the risk/return profile of a…
- Categories S&P 500 & DJIA
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As the UK Targets Net Zero by 2050, the S&P UK PACT Indices Can Too
The UK set goals of reaching net zero targets by 2050; these targets include transitioning to cleaner power and a more sustainable future, securing 440,000 well-paid jobs, and protecting the British consumer from global fossil fuels price spikes.1 The UK equity market certainly has some work to do, given its high weight in carbon-intensive sectors,…
U.K. Small Caps: Mind the Gap!
A gap between the 12-month performances of the S&P United Kingdom SmallCap and S&P United Kingdom SmallCap Select Index hints at a “junk rally” in U.K. stocks, but the longer-term data suggests that those looking to participate in an ongoing recovery in the world’s fourth-largest economy might be wise to maintain a selective approach. As…
- Categories Equities, Factors
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2021, IIS, Index Construction, Index Investment Strategy, institutional investor, investability, liquidity, profitability, S&P United Kingdom, S&P United Kingdom BMI, S&P United Kingdom SmallCap, S&P United Kingdom SmallCap Select, S&P United Kingdom SmallCap Select Index, Sherifa Issifu, size, small caps, smallcap, Smallcap Select, U.K. equities, United Kingdom
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- 2021, IIS, Index Construction, Index Investment Strategy, institutional investor, investability, liquidity, profitability, S&P United Kingdom, S&P United Kingdom BMI, S&P United Kingdom SmallCap, S&P United Kingdom SmallCap Select, S&P United Kingdom SmallCap Select Index, Sherifa Issifu, size, small caps, smallcap, Smallcap Select, U.K. equities, United Kingdom
Active U.K. Income Funds Endure Challenging Times
The U.K. has been one of the worst-hit countries in developed markets in terms of dividend cuts in 2020. One in two dividend-paying companies in the S&P United Kingdom BMI have cut dividends, while half of the remaining companies are also expected to cut dividends.1 A tough year indeed for equity income managers, as opportunity…
- Categories Strategy
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Brexit: Sell on May and Run Away?
29 months after the referendum that triggered Britain’s departure from the E.U., and a little over four months from the scheduled departure date, the nature of the ultimate exit deal (if any) remains uncertain. What can indices tell us about the market’s reaction and expectations? The volatility of the pound sterling has offered a direct link to the uncertainty…
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Sizing Up U.S. Equities In Managing Brexit Risk
One of the main recent headlines has been the strength of the UK pound from the proposed Brexit transition. This brings into question how investors in the UK and Europe may possibly position themselves in the U.S. equity market. Notice in the past five days, the USD to GBP started from a high of 1.305…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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In the “Year of Surprises,” UK Bond Markets Manage Their Way
UK bond markets managed to perform well, with significant YTD returns during a year filled with public vote surprises, as well as both rate decreases and hikes globally. The S&P U.K. Investment Grade Corporate Bond Index had a YTD return of 10.75% as of Dec. 21, 2016, while the S&P U.K. Gilt Bond Index gained…
- Categories Fixed Income
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Navigating Brexit
Despite some warnings from volatility gauges, the market had “priced in” a vote for remain from the UK’s population. This has made for some dramatic headlines, and large movements since the vote to leave the EU was announced. As the market scrambled to make sense of the political chaos, three key themes have emerged from the…
Divining Brexit
The markets’ view of the pending British referendum on EU membership displays the hallmarks of a low probability, high impact event. Correlations, and volatility expectations, are the key indicators. When macroeconomic risk is dominant, as a select few narratives come to preoccupy investors, correlations increase. For example, in August and September 2015, markets worldwide were roiled…
Does active management work in Europe?
Academic arguments may well have “proven” the theoretical advantages of passive investing. But theory is nothing without experiment; a comprehensive and impartial assessment of where and when active managers have delivered the promised “alpha” – or not – is a necessary and critical component of the debate. Our S&P Index Versus Active scorecard and associated…