market efficiency – Benefits Canada.com

Diworsification: How hiring too many asset managers can cancel out benefits

mschmit — Fri, 31 Jan 2020 04:41:53 +0000

Discovering moments of mispricing is the soul of generating active returns, says Wylie Tollette executive vice-president of client portfolio solutions at Franklin Templeton Investments. But some investors, eager to discover opportunities to add alpha to their portfolio mix, may accidentally harness so many sources that their efforts to diversify actually hinder the benefits of doing […]

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When does active management make sense for large pension funds?

mschmit — Thu, 05 Dec 2019 04:34:19 +0000

For many passive investors, the belief in efficient markets is core. But how efficient are markets at different parts of the capitalization spectrum? A new paper by CEM Benchmarking Inc. looks at the historical performance of actively managed portfolios for dedicated U.S. large cap equity portfolios and dedicated U.S. small cap equity portfolios for large […]

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A look at ESG’s influence on market efficiency

mschmit — Thu, 10 Oct 2019 04:44:04 +0000

With the rise in socially responsible investing and quantitative strategies, are institutional investors that incorporate environmental, social and governance factors making markets less efficient and increasing mispricing signals? The link between socially responsible investing and the efficacy of signals used by quantitative investors is explored in a new working paper by Jie Cao, associate professor […]

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