MSCI looks at why investors may have a limited small cap representation in their equity portfolios and how this may potentially impact on both risk and returns.
The researchers find that investors may be making an unintentional decision to minimise their exposure to small caps that could have cost 60 basis points of annual performance over the last decade.
global small caps, MSCI, small caps
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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