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...
Factors have become an influential force in investors’ decision-making processes, buttressed by a growing body of academic and financial industry research that has affirmed the effectiveness of factors in driving...
As a well-known concept to practitioners and academics, carry has been leveraged in the currency markets for decades. With the understanding of such FX carry trades becoming established, recent academic publications...
Equal weighting is known as one of the oldest and time-tested approaches to reduce concentration risk and enhance diversification. This paper explores the key benefits of equal weighting over its cap-weighted...
In the last 10 years, the concept of the minimum-variance (MV) portfolio has successfully evolved from an academic topic of discussion to an implementable investment theme. Currently, a significant number of...
