All Passive articles
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White papersOptimizing a Global Credit Portfolio
By using a “building block” approach, investors may be able to improve diversification, boost risk-adjusted returns and reduce implementation costs. Our white paper outlines the potential benefits of a modular approach to optimize your fixed income portfolio.
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White papersThe Pitfalls of Investing In Factor Indices
Factor indices are a far cry from “passive” investing and may be ill-designed to deliver optimal risk-adjusted returns.
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White papers2024 Proxy Season Preview
No right versus wrong assessment can be applied to proxy voting. Assessing how proxy voting supports the overall investment process is what is most important. Rather than seeking to influence vote outcomes, the market should focus on influencing how investors use the proxy vote in the context of the investment objectives it seeks to achieve on behalf of clients.
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White papersThe Challenge of Active Engagement in a World of Passive Ownership
In an exclusive interview with the Global Investment Institute, Jonathan Bailey Managing Director and Global Head of ESG & Impact Investing shares the areas of focus driving his team’s research agenda and addresses his thoughts on the implications of the upcoming US Presidential election on the Inflation Reduction Act, the role for active engagement and how to measure companies’ true progress towards reducing real world emissions.
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White papersThe Muddy Logic of Passive Commodity Investing
Passive investing in commodities is a bit of an oxymoron.
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White papersDowns and Ups: Managing Equity Volatility Goes Both Ways
Defensive equity strategies that limit downside losses but lag too much in up-markets may be missing the mark. Is there another way to reduce volatility?
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White papersBond Portfolio Optimisation and Mixed Integer Programming
While portfolio optimisation is commonplace in equities, it is more complex in the fixed-income space, partly because of trading lot sizes. Implementing the portfolio composition by converting weights into holdings is easy for equities due to small lot sizes.
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White papersThe Limitations of Passive Investing to Achieve a Net-Zero Outcome
In our second installment of The Fine Print of Indexation, we tackle the challenge of building net-zero-aligned portfolios.
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White papersThe Fine Print of Indexation
A look at opportunity costs, long-term risks and complementary solutions.
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White papersSystematic Fixed-Income Investing Comes of Age
Bond investors have been challenged by heightened volatility and big drawdowns in the aftermath of the pandemic. In response, investors are increasingly seeking systematic strategies, which can generate active returns while mitigating risk and charging competitive fees. In this paper, we explore the principles, processes and benefits of a systematic fixed-income strategy, an investment approach whose time has come.
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White papersReimagining Growth: A Market Beyond Mega-Caps
US growth stocks were hit hard in last year’s downturn, with the mega-caps accounting for nearly half of the market’s decline. Now, the changing contours of the market mean investors can capture a broader array of recovery candidates while incurring less benchmark risk.
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White papersActivating Equity Portfolios for Higher Rates and Inflation
Passive equity investing has retained its dominance and outflows from active portfolios have continued amid the market and macro shocks of the past year. But in a world of structurally higher inflation and interest rates, there are good reasons for equity investors to consider active portfolios for equity allocations.
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White papersAsia ex-Japan Equity: Letter to Investors - Outperforming us over the long term
In our annual Letter to Investors, Jonathan Pines, Lead Portfolio Manager, discusses the Strategy’s performance since inception in 2010.
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White papersEquity Outlook: Rebuilding Conviction in Stocks for a Changing World
For 40 years, steadily declining inflation and interest rates buoyed equity returns. That changed abruptly last year. Investors must now adjust expectations to a new macroeconomic and market landscape that will require a fresh mindset to reach long-term goals.
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VideoPreparing Equity Portfolios for a New Investing Era
It certainly feels as if we’re entering a new era for investors, and that can be pretty unsettling, particularly after a year like 2022, where we saw extreme volatility and stock markets around the world declining. But we believe that this is the right time to focus on what the new regime may look like and start to position accordingly.
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White papersCustomisation: the new frontier of passive investing
Commentators often oversimplify investing to a binary choice between what they perceive as two competing alternatives: actives and passives. The commentators overlook the fact that choosing a standard index is really an active asset allocation decision. Also, the way an index is constructed ultimately drives the selection of securities and, in some cases, the countries or regions in which an indexed portfolio will invest.
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White papersWhy Passive ESG Fails to Deliver
Investing based on environmental, social and governance (ESG) factors has gained traction in recent years, reflecting the interest of many investors in deploying their capital to positively influence corporate practices and drive sustainable change.
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White papersESG investing: Why we believe an active approach is optimal
The ‘active versus passive’ investing debate is well documented and has rumbled on for years. However, when it comes to investing from an environmental, social and governance (ESG) perspective, we firmly believe active investing is the optimal route.
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White papersCombining active and passive investing in Multi Asset: an institutional investor framework
Numerous factors have been driving the development of passively managed vehicles and their increasing weight in institutional investors’ portfolios. In particular, a recent PwC study showed that the weight of passive investments in global pension funds’ portfolios grew from 19% in 2017 to 25% in 20201.
