The MSCI Inc. is launching five thematic indexes to track the performance of what it calls ‘megatrends,’ namely the rise of smart cities, the digital economy, future mobility, disruptive technology and millennials. Institutional investors can use these indexes as investment policy benchmarks, as the basis for passive products or as benchmarks against which to measure […]
Active mutual funds that engage in securities lending through in-house lending agents should raise questions for institutional investors. These funds may “reach for lending fees” by overweighting high-fee stocks, according to a new working paper by Travis Johnson, an assistant professor of finance, and Gregory Weitzner, a PhD student, both from the University of Texas’ […]
When sell-side stock analysts tell the public to buy, they may in fact be whispering sell to their institutional investor clients, according to a new working paper by Yushui Shi, a PhD candidate at the University of California, Irvine. The paper, which is based on data from China, looks at mutual fund managers voting for […]
Romania will be reclassified from a frontier to a secondary emerging market and Tanzania will become a frontier market, effective September 2020, according to the equity side of FTSE Russell’s latest classification review. Argentina was removed from the watch list for potential reclassification as a secondary emerging market because it has imposed capital controls. And […]
China warned the United States against trying to limit investment ties between the two countries, even as the Trump administration contradicted a report that Washington might be considering removing Chinese companies from American stock exchanges. The foreign ministry appealed to Washington to “meet us halfway” and resolve disputes amid a tariff war that threatens to […]
In a world where zero-fee funds are rising, how are fund managers making money? And while zero fees sound beneficial for investors, is it really the best option? Marius Zoican, an assistant professor of finance at the University of Toronto Mississauga and Rotman School of Management, tackled these questions in a new working paper. During […]
As the U.S. Securities and Exchange Commission moves to increase its oversight over proxy voting advisory firms, Horizons ETFs is evolving its proxy voting policies to take on a more socially responsible investing position. “We do have an obligation to our unit-holders to act in their best fiduciary interest, but we also have a socially […]
Recent research by MSCI Inc. is suggesting conventional virgin plastic could become the next stranded asset. The move toward electric vehicles and global efforts to reduce carbon emissions may cause oil demand for road transport to peak in 2025, according to the research. In response, oil and gas companies are expected to pivot their focus […]
Investors seeking regular income are limited because traditional sources aren’t producing the results they used, says Dave Makarchuk, partner and Western Canada wealth business leader at Mercer, noting bond yields are really low and coupons are low. “And so dividends can be an attractive option for those who are seeking regular cash flow,” he says. […]
Danish pension fund, the ATP Group, posted an eye-popping 26.9 per cent net return for its return-seeking investment portfolio in the first half of 2019. This compares to a net return of 2.7 per cent that the fund saw for the first half of 2018 and a negative net return of 3.2 per cent for […]