All entries by this author

MSCI: How easy is it to track a bond market index?

Feb 21st, 2018 | By
Andy Sparks, head of fixed income research strategies, MSCI

By Andy Sparks, head of fixed income research strategies, MSCI.

Many investors may have only a qualitative understanding of the ability of passive fund managers to track the returns of a fixed-income index. Our analysis uses tracking error to provide a quantitative measure of the ease – or difficulty – of consistently tracking an index. We find generally low to moderate tracking error across broad parts of the bond market. Our analysis also suggests that less liquid and higher volatility sectors (such as high yield) tend to have higher tracking error.



Trends shaping the future of asset management

Feb 16th, 2018 | By
Peter Hopkins, chief operating officer of Style Research.

By Peter Hopkins, chief operating officer of Style Research.

As the industry works to cope with new regulation, wades through an outpouring of new products, learns to satisfy investors’ shifting priorities and manages the active-passive debate, the viability of business units will be questioned, and at times radical measures will be taken. It’s still early days for these trends shaping the future of asset management, but their impacts will be felt far and wide.



WisdomTree: How to trade the Brent/WTI oil spread using short and leveraged ETPs

Feb 15th, 2018 | By
WisdomTree: How to trade the Brent/WTI oil spread using short and leveraged ETPs

By Nick Leung, research analyst at WisdomTree in Europe.

A widening oil spread presents trading opportunities for oil investors. In this brief, we examine how short and leveraged oil ETPs can be used to efficiently trade oil price movements.



PIMCO: Regime change in bond markets?

Feb 15th, 2018 | By
Gene Frieda, executive vice president and global strategist at PIMCO.

By Gene Frieda, executive vice president and global strategist at PIMCO.

With a steady repricing of global bond markets having contributed to a sharp plunge in global stock markets, there could be a whiff of a new era in the air. Given the failure of both markets and central banks to forecast inflation accurately, we should all be humble about the level of precision attached to the timing or nature of the bond market’s next chapter.



VanEck: Tax reform adds fuel to gold’s engine

Feb 13th, 2018 | By
VanEck: Tax reform adds fuel to gold’s engine

By Joe Foster, portfolio manager for the gold and precious metals strategy at VanEck.

Anyone hoping that Washington DC would become fiscally responsible under Republican Party rule has seen their hopes go up in flames, as new tax rules appear likely to drive the US deeper into debt.



Mind your P’s and F’s: Don’t confuse leveraged ETPs with ETFs

Feb 7th, 2018 | By
BlackRock launches dividend and buyback ETF on Cboe

By Martin Small, Head of US iShares at BlackRock

As the recent market volatility made clear, there’s a big difference between plain vanilla ETFs and leveraged products making big bets with big risks.



China’s 2018 economic growth focus: Quality over quantity

Feb 7th, 2018 | By
Physical China A-share ETFs go head to head

By Jack Jiang, senior ETF specialist at ICBC Credit Suisse Asset Management (International).

The Central Economic Work Conference (CEWC) was held in Beijing on 18-20 December 2017 and, as the first CEWC after the Nineteenth Party Congress, it set the tone for China’s central government’s economic policies in 2018. They are crucial to the long-term development of the world’s second-largest economy.



WisdomTree: How to manage BTP risk ahead of the Italian election

Feb 6th, 2018 | By
Nizam Hamid , ETF strategist at WisdomTree in Europe.

By Nizam Hamid, ETF strategist at WisdomTree in Europe.

The upcoming Italian election, scheduled for 4 March 2018, has the potential to revive a risky environment for Italy government bonds, BTPs. Whilst not entirely reminiscent of the 2016 referendum, which highlighted significant constitutional issues and challenges, the election certainly brings an element of uncertainty that investors may do well to prepare against.



Great returns, but what comes next? How asset allocation funds can help your portfolio

Feb 1st, 2018 | By
Patrick Nolan, CFA, Portfolio Strategist at BlackRock Portfolio Solutions

By Patrick Nolan, portfolio strategist at BlackRock Portfolio Solutions.

In an era when equity returns are relatively easy to come by, yields remain low, and volatility barely makes a ripple, it can be a challenge to contemplate how to build portfolios for the next market cycle. How can you prepare for a time when the ups and downs of owning stocks may be significantly bumpier than it has been for the past eight years?



Nikko: MSCI inclusion of ‘A’ shares is China’s great leap onto world stage

Jan 30th, 2018 | By
Eng Tech Tan, senior portfolio manager – Asian equity at Nikko Asset Management

By Eng Teck Tan, senior portfolio manager, Asian equity at Nikko Asset Management.

Investors today are used to designing and managing portfolios of Asia ex-Japan or even Asia-Pacific ex-Japan stocks. But imagine a day when Asia ex-China portfolios are the norm. We think this is not too far-fetched an idea.