The FTSE Custom Developed ex Korea SDG Aligned Index (“SDG Aligned index”) is a developed market equity benchmark launched in March 2019 that uses adjustments to constituent weights to create alignment with four of...
Sovereign debt investors are exposed to a range of climate change risks that are generally not well understood or incorporated into the investment process. Part of the challenge has been the lack of sustainable...
Factor strategies differ significantly in terms of portfolio construction. There is much debate regarding the pros and cons of alternative construction approaches. A vigorous debate has unfurled over the best way to...
Is it better for a bond index to be able to change every day, or only every month? This paper discusses the pros and cons of each approach, using examples taken from the FTSE Canada Universe Bond Index—which...
For this study, the second in our series on the effects of investor home bias, we examined the industry concentrations, performance and return-to-risk profiles of the equity markets in France, Germany, Netherlands,...
Although China-US trade tensions continue to dominate headlines, September data from the Bond Connect trading scheme – which grants international investors access to China’s interbank bond market – revealed trading...
In this paper, we introduce what could be the impact of climate change for sovereigns via the changes in fiscal policy, social contract and political stability, in both advanced and emerging economies. First, we...
In this paper, we address questions that are frequently asked by clients, focusing on Selection & Weighting and comparing it to the Bottom-up FTSE Russell Tilt approach.
The objective of this paper is to explore the US mortgage-backed securities (MBS) market from the perspective of a foreign investor. We pay particular attention to the US Agency MBS segment, owing to its size,...
Studies have shown that pension funds have inherent biases to their domestic markets within their equity allocations. We measured the extent of the home bias in the US, UK, Japan, Canada and Australia between...
Real estate is a popular asset class that can be easily accessed through investing in the exchange-listed stocks of real estate companies globally. In this report we use the FTSE EPRA Nareit Global Real Estate Index...
The Industry Classification Benchmark (ICB) provides the foundation of industry and sector analysis utilized by exchanges, investment managers and researchers across the globe. The ICB structure was recently...
Interested in understanding the state of volatility in the current market? This comprehensive package from Clear Path Analysis and FTSE Russell covers all the important focal points with top industry thought leaders...
Year after year, plan sponsor surveys show controlling funded status volatility (surplus risk) as the top priority for their organizations. When liabilities grow faster than plan assets, additional cash contributions...
China’s bond market continues to evolve as Q2 gives way to Q3 – and it is attracting more interest from international participants eager for exposure to the world’s second largest economy.
In this paper, we illustrate that capitalization weighting, equal weighting and inverse market-capitalization weighting schemes are special cases of a more general class of factor tilt indexes that embed specific and...
This Insight discusses the growth of smart sustainability, investors’ motivations for applying ESG considerations to smart beta, the factors that are causing regional differences in demand, and the outlook for smart...
In this report, we take advantage of four decades of information to observe how the US equity markets have reflected the overall growth in the US economy as well as the shift from a largely industrial economy to one...
A Fallen Angel is a corporate, or sovereign, bond downgraded from Investment Grade to a High Yield credit rating. Thus, the downgrade from Investment Grade (IG) to High Yield (HY) is far more significant than a...
Infrastructure is an investment category often seen by investors as a diversification tool that can provide a hedge to long-term liabilities by offering exposure to potentially stable returns and steady income. FTSE...
