| Rafey Sayood | ||||||
By its very nature, index investing is a relatively effortless way to manage institutional money. All a fund manager need do is pile assets into a basket of securities that replicates the relevant yardstick, sit back and let the markets do the rest.
For the majority of active investors, index benchmarks provide the foundation for portfolio construction. The fraction of assets diverted away from market-neutral positions determines whether a fund outperforms or underperforms.
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