The nemesis of cap-weighted indexing turn attention to bonds

First he convinced some of us that cap-weighted indexing doesn’t work, now Rob Arnott, the founder of Research Affiliates, is back with more bombshells – that the equity risk premium, as we came to know it, is gone and not hurrying back; and that emerging market debt is “objectively a better credit risk” than US Treasuries, at a higher yield to boot.

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Ontario enters second phase of reform

Local pension plans have warmly greeted the second phase of pension reform in Ontario, Canada, through a bill which contains provisions such as restrictions on benefit improvements where amendments will compromise a plan’s funded position.

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