Portfolio Construction

Bank of America Merrill Lynch is among brokers saying the euro will likely recoup its losses against the dollar in 2019,1 as the Federal Reserve slows down the pace of tightening and the European Central Bank (ECB) gradually removes monetary support.

When it comes to evaluating the success of equity portfolios or constructing a traditional passive investment strategy, the go-to instrument has usually been the market capitalization-weighted index.

The first edition of Morningstar’s European Active/Passive Barometer shows the extent to which active managers in the region have underperformed their passive peers in recent years, suggesting the active-management industry must contend not only with high costs but with poor returns too. 

Factor investing has gained enormous traction in recent years as a transparent and low-cost way to exploit widely-acknowledged sources of market-excess returns, so-called risk premia.

STOXX Ltd. announced today the launch of the new iSTOXX RiskFirst LDI index family. This new offering has been jointly developed with RiskFirst, the UK’s leading provider of risk analytics and reporting solutions to the defined benefit pensions market.