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Ample data demonstrates that passive management has largely outperformed its active counterpart net of fees for well over a decade. This has helped induce a mass asset transfer from active funds to exchange-traded funds (ETFs) and other passive alternatives and sparked considerable debate about the future of active management and what role it should play […]

Posted In: Best Of, Drivers of Value, Economics, Equity Investments, Future States, Performance Measurement & Evaluation, Philosophy, Portfolio Management, Risk Management, Standards, Ethics & Regulations (SER) To mark Enterprising Investor’s 10th anniversary, we have compiled retrospectives of our coverage of the most critical themes in finance and investing over the last decade. The past 10 years […]

Introduction Students often ask me for career advice. It is not a particularly satisfying experience. On the one hand, these are often exceptionally bright and hard-working people, with Oxford or Cambridge PhDs in chemical engineering, astrophysics, or some other challenging discipline. I wish they would stick to science and create something meaningful for our civilization […]

We’ve all heard the adage, “You have six seconds to make a first impression.” In an instant, we can meaningfully connect with someone or be banished to their “I never want to talk to that person again” mental bucket. Amazing the power of a simple moment. But what causes these vastly different outcomes? Is it […]

Gender lens equity investing developed from a substantive body of research demonstrating the financial, risk management, decision-making, and other corporate benefits of higher levels of women in leadership (WIL). In our coverage universe at Parallelle Finance, 27 gender lens global and regional equity funds are available to individual investors. Their assets under management (AUM) totaled […]

To mark Enterprising Investor’s 10th anniversary, we have compiled retrospectives of our coverage of the most critical themes in finance and investing over the last decade. Much of the philosophical architecture of modern finance — modern portfolio theory (MPT), the capital asset pricing model (CAPM), the efficient market hypothesis (EMH), etc. — rests on the […]

Across all economic sectors, disruptions resulting from the global pandemic have forced businesses around the world to adapt and create new models of work. Although some industries may eventually return to a more normal operating model, the investment industry has already crossed a threshold, according to Kunal Kapoor, CFA, CEO of Morningstar. “The longer this […]

Environmental, social, and governance (ESG) considerations are not always as black and white as many anticipate. Take, for example, the recent trend of large extractive companies selling off carbon-intensive assets, partially in an effort to “decarbonize” their portfolios. Such actions may look like progress towards addressing investor concerns about the economic impacts of a warming […]

Discussions of the relative merits of passive vs. active investing are ubiquitous these days and — so long as discussions thoughtfully add to the debate — we at the Investment Company Institute (ICI) rarely feel compelled to offer a critical response. But some publications force us to speak up. In Defined Contribution Plans: Challenges and […]

Beyond Diversification: What Every Investor Needs to Know about Asset Allocation. 2020. Sébastien Page, CFA. McGraw Hill. Sébastien Page, CFA, explains the pros and cons of different approaches to forecasting returns, risks, and correlations across asset classes. He explores methods of constructing portfolios to meet a range of client requirements. “If you don’t think you […]