MSCI

The discussion about the best way to build and manage an appropriate exposure to China is becoming more urgent. Mercer has helped investors with some new research. In a paper entitled: ‘Positioning Your Portfolio for the Future of Emerging Markets – the case for a dedicated China equity allocation’ the global advisory and funds management…

There is growing concern about the relevance of broad market indices, especially due to their poor reflection of China’s growth. The main concern should probably be managers who hug them. Whether or not it’s the index producers to blame, or managers who are not as active as they claim, an interesting angle on what is…

In a highly unusual move, the Financial Markets Authority (FMA) has cracked down on fund managers advertising post-COVID boom-time annual returns. The regulator has warned managers that advertising any “phenomenal” returns garnered over the 12 months to March 31 could “mislead investors”. Global share markets bounced back spectacularly from the brief COVID-induced shock early last…

While many investors are watching the overall rotation of growth versus value – is it really a rotation? how long will it last? – there are various tilts to value which are also worth watching. One such tilt is a portfolio of stocks constructed with high dividend yields in mind, such as that offered by…

While all high-growth markets, such as many emerging markets, tend to disappoint equity market investors over long periods, China is a standout, according to Gerard Minack. The country is ‘the world’s best practice dilutor” of capital, he says. It’s the dilution of share capital, because of China’s allocation of capital through high levels of investment,…

The ASX is not Wall Street. A lot of the recent discussion about a style rotation, at long last, putting the value back in value investing, has focussed on the behaviour of US and global markets. A clearer focus on Australia offers a more nuanced, and relevant, analysis. According to a blog posted last week…

Volumes have been written about the frustrations felt by value managers from the long performance drought endured by their investors because of the big tech stock boom for much of the past 10 years. But what the next chapter brings is still unknown. Signs are there that the rotation which started in the fourth quarter…

Aviva Investors last week (November 30) launched an Australian-domiciled global equities fund for institutional investors, targeting alpha from companies that are either providing solutions to climate change or transitioning their business models for a low-carbon economy. The strategy is based on the firm’s European version of the fund. The Climate Transition Global Equity Fund, which…

London-based global manager Man Group has launched a high-conviction Asia ex-Japan equities strategy following the recruitment of Andrew Swan from BlackRock and a small team to be based in Sydney and Hong Kong. Swan, who spent the past nine years running, at first, BlackRock’s Asian fundamental equities strategies and then Asian-plus-emerging-markets funds, has focused on…

Excess returns from active equities managers in emerging markets have declined steadily for more than 15 years and, while fees have come off too, mainstream managers should look at further reductions, according to Frontier Advisors. In its latest research note, ‘Active Management in Emerging Markets’, Frontier says the investors could consider emerging markets (EM) small…