Most active managers fail most of the time, at least if we define failure as underperformance of an appropriate passive benchmark. Success, when it does occur, tends not to persist.
How can market participants obtain a complete picture of corporate environmental performance?
Explore an analysis of the required returns of stock and bond sectors to understand potential weighting opportunities within each asset class and to find the relative value between asset classes within each sector.
In the current financial environment, the often misunderstood municipal bond market is not considered to be a “core” asset class by many investors, nor is it labeled as such by institutions offering financial products to investors
Explore the potential opportunities and remaining challenges for green bonds as green finance investment instruments.
While comparing active funds against a benchmark index is a typical practice used to evaluate their performance, persistence is an additional test that reveals fund managers’ skills in different market environments.
A number of key developments are likely to shape environmental, social, and governance (ESG) trends over the course of 2017. Managing these transitions and the deeply interconnected risks they entail will require long-term thinking, investment, and international cooperation.
Does Past Performance Matter?
Historically, inflation has been a concern in Brazil. Inflation-linked bond strategies are commonly used by market participants as a way to manage changes in inflation; however, due to market constraints and limited trading volume, not all issuances are liquid.
At the December 2015 Conference of the Parties (COP 21) in Paris, 197 countries agreed on their aim to keep global temperature rise “well below” 2ºC from pre-industrial times. Explore the ramifications of that goal and the movement toward COP 22.
Owning individual bonds has its risks and rewards. However, buying a bond entails an unseen transaction cost, which may not always be clear to retail investors. This transaction cost exists because bonds are not typically sold with a commission. Instead, a markup is built into the bond price.
Our findings show that within domestic equity, the majority of managers in nearly every category underperformed their respective benchmarks over the five-year horizon, for both retail funds and institutional accounts.
The concept of trend-following as an investment strategy can be traced back to practitioners more than a century ago.
Why Consider Investing in Infrastructure?
Owning individual bonds has its risks and rewards. However, buying a bond entails an unseen transaction cost, which may not always be clear to retail investors.
Unconstrained bond funds can also pose potential challenges for measuring and understanding their performance.
On Feb. 17, 2016, Mexican authorities launched a coordinated effort to stem the slide in the value of the Mexican peso (MXN).
Our analysis finds that factor-based fixed income strategies implemented in a rules-based, transparent index can represent an alternative tool for fixed income portfolios.
Like a common stock, a preferred stock is an equity security, representing ownership in a company. However, there are several significant differences between these two types of equity.
Since it was first established as an index in 1957, the S&P 500 has been widely adopted by the financial community as the barometer of the largecap U.S. equity market.
Owning individual bonds has its risks and rewards. However, buying a municipal bond entails an unseen transaction cost, which may not always be clear to retail investors.