Not withstanding the effect, for investors, of globalisation, country and sector bets still drive the performance of global equity portfolios. And research shows that whole countries tend to stray from fair value for a lot longer than individual stocks do. Deutsche Asset Management has produced a paper on ‘Diversification-Based Investing’, which leads one to think about building a core balanced portfolio of country and sector index funds.
Research
GIC, Temasek eye trillions of growth in climate adaptation market
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.
Sort content by
Emerging market funds need to diversify
Pension funds in many emerging economies need to diversify offshore, says the World Bank, in order to achieve higher returns with potentially lower volatility.
Performance fees hardly worth it
An analysis of 218 Dutch pension funds has shown that paying performance fees has little impact on performance. Size of fund and specialisation were deemed more important for net returns.
OECD presents ESG stocktake
An OECD stocktake compares how different country's regulatory frameworks affect institutional investors’ approaches to integrating ESG factors into their decision-making.
Longer horizons lead to more investment
Dutch research has found that pension funds with longer horizons do hold more illiquid assets, but the correlation wanes after about 17 years and other factors also affect illiquidity tolerance.
McKinsey: Long game is best play
Calls for a long-term investment focus have lacked a sophisticated metric to back them up – until now. The McKinsey Global Institute has found tangible benefits from shunning short-termism.
MSCI shines light in tax gap
MSCI ESG Research has seen growing demand from institutional investors for data on tax-related risk. In response, it has added data such as geographic revenue transparency to its ratings.
Leave a Comment
You must be logged in to post a comment.
Login