Empirical literature and MSCI analysis show that high implementation costs indicate there is little evidence the average managers in either emerging market or small caps have produced either higher or more persistent risk-adjusted returns relative to their developed market and mid-cap peers.
emerging market, fail in risk-adjusted returns, high implementation costs, small caps, underperformance
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
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