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The Case For Fundamentally Indexing Emerging Markets
If you are a student of Fundamental Indexing, you would know that a significant source of the value-add is through the reduced participation in pricing bubbles (more specifically, the reduced exposure to high P/E stocks during the subsequent bursting of said bubbles). Since Emerging Markets are more prone to pricing bubbles (as those markets are [...]
7May2009 | admin | 0 comments | Continued
The Power Of Indexation
An article titled “The Power Of Indexation” appeared in the March 2009 edition of Advisor’s Edge (you may recognize the author). This magazine is free to financial advisors to subscribe to, and if you don’t receive a copy you can click here to initiate a free subscription.
The article discusses the various ways that advisors can [...]
30 Years of Time Magazine Covers and The Stock Market
I stumbled upon a presentation floating around on the internet which looks at the past 30 years of Time Magazine covers as they relate to the stock markets. Essentially, one theme is that once the market meltdowns make the front page it’s not a bad time to get back into the equity markets - such [...]
15Apr2009 | admin | 0 comments | Continued
VIDEO: Rob Arnott on Fundamental Indexing
Rob Arnott is the founder and chairman of Research Affiliates. In this video produced by Morningstar, Arnott very eloquently explains the argument behind Fundamental Indexation
Rob established Research Affiliates® in 2002 as a research-intensive asset management firm, focused on building cutting-edge new products, and bringing them to the marketplace through affiliations wherever possible. Pro-Financial Asset Management [...]
Press Release: Pro-Financial Index Funds Fire Warning Shot to ETFs
2008 marked a potential turning point for investors in Canada as long term mutual fund assets declined while passive investment vehicle assets increased. The message that active management has a tough time keeping up to benchmarks on an after-fee basis is gaining traction. But why not get the best of all worlds?
Pro-Financial Asset Management’s Fundamental [...]
Core Portfolio Designer
The Core Portfolio Designer is designed to allow you to back-test a portfolio of fundamental indices in varying proportions to determine their historical performance, and to directly compare fundamental indexation with market-capitalization weighting strategies as well as actively-managed mutual funds. The tool is an excel spreadsheet but produces a series of one page, client facing documents [...]
30Dec2008 | admin | 0 comments | Continued
Standard Deviation
According to the Capital Asset Pricing Model (CAPM), risk can be used interchangeably with standard deviation with respect to well diversified portfolios. In other words, risk can be viewed as a measure of portfolio volatility. We have seen, Standard Deviation increases exponentially with Potential Return, but what does this translate to in real world application? [...]
30Dec2008 | admin | 0 comments | Continued
