Tag Archives: Equities

Latin America – 2019 in Review

From a political and economic standpoint, 2019 was a challenging and interesting year for the Latin American region, but the region still finished strong. The S&P Latin America 40, Latin America’s blue-chip index, ended Q4 with a return of 9.0%, and it was up 13.9% for the year. Small-cap stocks in the region fared well, Read more […]

Performance and Volatility for Sectors in the 2010s

As we enter the 2020s, here are some key points about the 2010s – The U.S. economy has expanded for a record 126 straight months, the longest time period in U.S. history, according to the National Bureau of Economic Research. The bull market in U.S. stocks has run about 10.7 years, one of the longest Read more […]

The Active vs. Passive Debate

The debate between active management and passive management has being ongoing for several years. Active managers make investment decisions in an effort to outperform their benchmark, while passive managers simply track an index to gain exposure to a market or segment of a market. Active managers claim to have enough skills to consistently outperform the Read more […]

Equity Markets React to the U.K. Election

At the General Election on Thursday, U.K. voters handed a resounding victory to Boris Johnson’s Conservative party.  The British electorate awarded the party with 365 out of 650 seats, the largest outright majority of any U.K. government since 2001, and the biggest victory for the Conservative party since Margaret Thatcher’s final victory in 1987. Exhibit Read more […]

Volatility Did Not Help Active Managers’ Persistence Scores

While many investors appear to believe that winners persist over time, the most recent S&P Persistence Scorecard underscores the well-known disclaimer that “past performance is no guarantee of future results”: irrespective of asset class or style focus, few fund managers consistently outperformed their peers. Some market participants believe that active managers with successful track records Read more […]

Common Confusion

The critics of passive investing are nothing if not creative.  One of their objections to the growth of index funds stems from the putative problem of “common ownership.”  The argument is that index funds’ ownership of many of the competitors in most industries encourages or facilitates collusive behavior.  “[T]he fear is that by owning chunks Read more […]

Unlikely Tariff Rollback Deflated Commodities in November

The broad commodities were tepid in November. The S&P GSCI was flat for the month and up 9.9% YTD. The Dow Jones Commodity Index (DJCI) was down 2.1% in November and up 4.5% YTD. Gains were driven by the energy complex, while both precious metals and industrial metals detracted from headline performance. The S&P GSCI Read more […]

Integrating Low-Carbon with Single Factors in Asia

Factor investing in Asia has grown at a rapid pace, with smart beta passive AUM growing at a 42% compound annual growth rate over the past five years, albeit from a relatively lower base.[1] With increasing awareness of climate change and related risks, investors may look to integrate carbon screening into their factor portfolios. In Read more […]

Should Green Benchmarks Include Fossil Fuel Stocks?

As green investing becomes ever more mainstream, there is greater scrutiny of the myriad “environmentally friendly” investment products that have emerged. Several green-labeled benchmarks have been criticized for including oil and gas stocks, for instance, sparking some controversy within the sustainable investment community. However, while efforts to make financial products more transparent are laudable, not Read more […]

The Performance of Carbon-Efficient Portfolios in Asian Markets

In recent years, governments have become increasingly aware of the perils of greenhouse gases and have aimed to penalize the source of pollution while looking to incentivize low-carbon technologies. In addition, investors are now considering an organization’s future financial position to discount potential write-downs of assets and the effect on revenues, costs, cash flows, and Read more […]