Analysis

by David Chaplin Indexers will overtake their active peers within 10 years, according to new research by consultancy firm EY, with exchange-traded funds (ETFs) set to reap the greatest rewards. This is actually good news for active managers. EY projects passive funds will grow global market share from the current 24 per cent to 31…

There are changes afoot in emerging markets, not the least being the imminent inclusion of China in the main indices from next year. More importantly, emerging markets are now dominated by tech companies, not old-world manufacturers. According to James Donald, New York-based portfolio manager for Lazard Asset Management, emerging markets leaders are increasingly being populated…

In its latest major study of markets, global manager Robeco addresses the question: “is secular stagnation for real?” The study on expected returns for the next five years, entitled “Coming of Age”, thinks stagflation is unlikely. The report says that the phenomenon of stagflation – which was a scourge of the 1970s in the western…

by Greg Bright This trend means a lot for Australia and also for Australian funds managers. bfinance, the manager search firm, produced an important summary of the emerging agriculture and timber asset sub-classes globally last week. The firm also provided extra info for Australian investors. bfinance (with an annoying lower-case ‘b’), the UK-based global manager…

We all know that small caps have an advantage over large caps over long periods and in most markets. We also know that emerging markets represent better long-term growth prospects in both economies and their markets. But, what most super funds have not yet done is put the two together. This is a way to…

According to a new report by EY, the big management consulting and research firm, most hedge fund managers are adapting to the revolution in technology. They, possibly more than most traditional mangers, are trying to use new technologies to enhance their processes. The report says: More than half of hedge fund managers are innovating to improve…

Casey Quirk has a history of making big bold predictions. The direction of those predictions is invariably correct, but the firm is often ahead of its time. Their latest prediction is about China. All funds managers should take note. Casey Quirk, the specialist asset management consulting firm, predicts that China will become the second-largest asset…

With US interest rates considered likely to resume their upward spiral as soon as next month and with little prospect of relief for investors who rely on an income, the whole world, it seems, is searching for an alternative to bonds in their portfolios. Here’s the case for floating-rate loans. According to John Redding, who…

Research Affiliates, arguably the inventors of ‘smart beta’, have raised the question that even though interest rates may be pushed up soon due to regulatory action, it is possible that bond prices are not in a bubble. Contrary to the consensus, maybe sovereign bonds are at fair value. In a recent paper, Californian-based Research Affiliates,…

The jury is out on whether the passive investment boom distorts market fundamentals, a recent paper by index provider FTSE Russell argues, with further evidence required to settle the case. In its report titled ‘The growth of passive investing: Has there been an impact on the US equity market?’,  FTSE Russell debunks some concerns that…

About one third of the 500 biggest global fund managers cut fees over the 2016 calendar year, according to the latest annual Willis Towers Watson (WTW) funds management industry review. The WTW study found just 7 per cent of the top 500 global asset managers were able to eke out a ‘moderate’ fee increase during 2016…

Mercer will begin reporting from next year on the practical impact of its responsible investment (RI) approach in addition to financial measures. Speaking at the group’s conference in Wellington, New Zealand, last week, Alexis Cheang, the Sydney-based Mercer senior consultant for responsible investments, said the firm had developed a framework for measuring outcomes against sustainability…