Research and Viewpoints
2009 Q1 SPIVA Canada Report
Standard and Poor’s releases a quarterly report called the SPIVA report (Standard and Poor’s Index Versus Active funds scorecard). It is a constantly updated comparison of actively managed mutual funds versus their benchmark indices with comparisons made for the past quarter, past 12 months and the past 5 years.
CLICK HERE TO DOWNLOAD THE 2009 Q1 [...]
May 2009 RAFI Fundamentals Newsletter
Research Affiliates publishes a monthly newsletter called RAFI Fundamentals.
May 2009’s edition is titled, “The Great Contra Trade”. Some critics summarily dismiss the value add of the Fundamental Index being attributed to a simple value tilt. However, the value add might better be attributed to the contra-trading nature of the Fundamental Index. The indexes were reconstituted [...]
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
April 2009 RAFI Fundamentals Newsletter
Research Affiliates publishes a monthly newsletter called RAFI Fundamentals. April 2009’s edition is titled, “IDTT: It’s Different This Time”. These four words are usually uttered during periods of uncertainty, but there are four other words which are much more powerful from a historical perspective: “Reversion To The Mean”. Arnott builds a strong case for dismissing [...]
30Apr2009 | admin | 0 comments | Continued
March 2009 RAFI Fundamentals Newsletter
Research Affiliates publishes a monthly newsletter called RAFI Fundamentals. March 2009’s edition is titled, “2008 - The Worst Year Ever For Active Management?”. Conventional wisdom posits that active management should have added the most value in a bear market, but sifting through the data reveals a different story.
CLICK HERE TO READ THE NEWSLETTER
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30Apr2009 | admin | 0 comments | Continued
Research Affiliates’ Advisory Panel Members
As you may know, Pro-Financial Asset Management’s Fundamental Index Funds are based on the patent pending methodology created by Research Affiliates. What you may not know is that Research Affiliates’ Advisory Panel is made up of some of the most influential financial minds in history.:
(NOTE: Mr. Peter Bernstein served on the Advisory Panel until his [...]
February 2009 RAFI Fundamentals Newsletter
Research Affiliates publishes a monthly newsletter called RAFI Fundamentals. February 2009’s edition discusses than when the price-to-book discount of the FTSE RAFI index is greater than 27%, the 3 year annualized outperformance of the Fundamental Index is 3.6% over the cap-weighted return in the US market. As of December 31st, 2008 the FTSE RAFI price-to-book [...]
3Mar2009 | 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 [...]
True Costs of Currency Hedging Far Outweigh Benefits
Larry MacDonald (from Canadian Business magazine and The Globe and Mail) wrote an excellent article indicating that the costs behind currency hedging are larger than you might surmise. Adding a currency hedge for 15bps might seem like a deal, but after factoring in the large tracking error introduced by applying a constant hedge seems to [...]
13Jan2009 | admin | 0 comments | Continued
ETF Pricing Subject To Whipsaw, Index Mutual Funds Are Not
Mark Noble wrote an interesting piece on one of the hurdles that ETF providers are facing with respect to mis-pricing and tracking error. In the article he notes that on one particular day XIN (which tracks the C$ hedged MSCI EAFE index) opened up 63.93% higher than the previous day’s close whereas the actual index [...]
29Dec2008 | admin | 0 comments | Continued
