Category Archives: Equities

Mayday, Mayday!

Coming into month-end, and as the street prepares its monthly summaries, (all figures are as of May 29th), the S&P 500 looks set to complete the month with a loss of around 5%.  So, what went wrong?  Global markets started the year very positively: the S&P 500 was up 18% by the end of April, Read more […]

S&P/TSX 60 2019 Gains Boosted by Exposure to the U.S.

The S&P/TSX 60 gained 15.5% YTD[i] and many companies included in the index have benefitted from business prospects in the U.S. While nearly all stocks in the index are domiciled in Canada, 49%[ii] of combined revenues come from within Canada’s borders, while another 30% are sourced in the U.S. As shown in Exhibit 1, stocks Read more […]

Risk-Reward Analysis of Selecting Active Managers

Although there seems to be more research on economic forecast and market analysis than manager selection, selecting investment managers is just as challenging as direct investing and requires considerable experience and expertise. In this blog, we investigate the return distribution of fixed income and equity funds to highlight the challenge of successfully selecting outperforming active Read more […]

Risk and Reward – The Advantage of Passive Investment

Passive investment is emerging as the more viable and favorable option over active investing. Recommendations for passive investing are supported by statistics. The S&P Dow Jones Indices SPIVA® Around the World Report for year-end 2018 (see Exhibit 1) highlights the trend of benchmark indices beating active funds. Exhibit 1: SPIVA Year-End 2018 Results Source: S&P Read more […]

Unreliable Investment Strategies

S&P Dow Jones Indices produces a semi-annual report comparing the performance of active managers to their target indices or benchmarks. The report is referred to as the SPIVA Scorecard (SPIVA standing for S&P Indices Versus Active Managers).  So, what does the SPIVA Scorecard tell us about performance?  As illustrated in the table above, for any regional equity class Read more […]

Examining Dividend Payers in Colombia

While substantial literature exists on dividend investing in developed markets, there is little research on emerging market dividend strategies, in particular for Latin America. S&P Dow Jones Indices surveyed the emerging market dividend payers in 2014 and found that Latin America constituted about 19% of the total global dividend payers.[1] As such, Latin American markets Read more […]

Introducing the S&P/ASX 200 ESG Index: Mainstreaming ESG in the Australian Equities Market (Part 1)

    The S&P/ASX Australian Index Series has played a significant role in characterizing the Australian equity market performance since its inception in April 2000. Since then, the S&P/ASX 200 has served as the foundation for benchmarks and index-based investing strategies from sectors to quality, value, and momentum factor approaches. Following the launch of the Read more […]

Capital Market Performance during the Five Years of Narendra Modi’s Government

The Narendra Modi government will soon complete its five years in power. With polling underway to elect the next government, India is in election mode. Everyone is discussing politics and predicting the election results. The backers of the current government claim that the return of Modi will provide stability and ensure development. On the other Read more […]

Little Churn in the Latest Low Volatility Rebalance

Market gains in the first four months in 2019 more than made up for what it lost in the turbulent last quarter of 2018 as the S&P 500 jumped 18%. Predictably enough, the S&P 500 Low Volatility Index® trailed the broader benchmark (up a “mere” 16% in the first four months), although Low Vol has Read more […]

Low Volatility and Minimum Volatility Are Not the Same

Global equities have been turbulent recently as a combination of stalled trade negotiations and announcements of tit-for-tat tariffs increased the prospect of a trade war between the U.S. and China.  After its historic start to the year, the S&P 500 is down 3.7% so far in May, while many other markets have also faltered month-to-date.  Read more […]