During the coronavirus market crash, U.S. stocks with higher institutional ownership experienced worse performance, especially those held by active, short-term and domestic institutions, according to a recent paper. Institutional ownership of U.S. stocks has risen to massive levels, comprising 75 per cent of stock ownership overall, noted the paper by researchers at the University of […]
Does the rise in passive investment strategies have consequences for financial stability? The shift to passive from active appears to be amplifying some risks to financial stability and mitigating others, according to a paper co-written by Kenechukwu Anadu, a senior financial markets specialist at the Federal Reserve Bank of Boston, and Mathias Kruttli, Patrick McCabe, […]
Does hiring sub-advisors abroad improve international mutual fund performance? Last Thursday night, a paper seeking to answer this question was awarded the CFA Society Toronto and Hillsdale Canadian Investment Research Award. The purpose of the award is to advance investment management through practitioner-relevant research in Canadian capital markets. “Our objective was always to try to […]
New evidence might surprise you…
What determines flows into funds with no performance history?
ETF for ETFs signals industry growth is set to explode.
Thirty-nine of the 42 Morningstar Canada Fund Indices increased during October, including 19 indices that increased by 3% or more. Here are some highlights from Morningstar’s October 2015 report: Funds that focus on energy and natural resources equities were the best performers. The Morningstar Energy Equity Fund Index, which dropped 19.1% in the third quarter, […]
What can we learn from ETF inflows?
ETFs have dominated headlines this year - what about next?
Canadians have accumulated savings of $1 trillion in mutual funds, marking the first time in their 82-year history in Canada that funds have topped this milestone.