Journal Of Indexes

Here, At The S&P 500

The stocks in the index most widely used by the financial industry are determined by a combination of general guidelines and the human judgment of a nine-person committee.

Journal Of Indexes

What Kind of Portfolio

The author draws on his portfolio management experience and passes along his thoughts on
approaches to the problem of managing large-scale equity diversification.

Journal Of Indexes

Internet Indexes — The Beat Goes On

Journal Of Indexes

Indexed vs. Active: The Current State of The Endless Debate

So institutional assets in index funds alone in the US were $1.6 trillion at year end 1998, after more than doubling from 1995 to 1998. Of the nearly 1500 institutional funds followed by Greenwich Associates, 24.4% of their total assets are invested in passive management strategies. Since the bulk are probably indexed to the Standard & Poor’s 500, that’s similar to a fifth or a quarter of the industry investing with the same money manager.

Journal Of Indexes

The Case for Currency Overlay

The author argues that the need for increased foreign investment exposure means increased exposure to potential currency losses, but also potential increases in total return of up to 190 basis points per year from more sophisticated management of currency risk. To Lindahl, that means pension funds and other large investment managers can no longer afford to leave their currency exposure unmanaged or passively hedged.

Journal Of Indexes

Devil-Free Indexes

Constructing an index to include the correlations you want and exclude those you don’t want can be more complicated than it seems.

Journal Of Indexes

Active Countries, Passive Stocks

Can a series of indexed country portfolios be actively managed at the allocation level and outperform the sum of the indexes?

Journal Of Indexes

Don’t Look Back, Magellan, Somebody’s Gaining On You

In mid-July Fidelity Investments' Magellan Fund sailed serenely past the $100 billion mark in assets.

As the largest existing mutual fund, Magellan is bigger than all stock mutual funds combined were in 1984 and bigger than the entire fund industry in 1979. Its assets are larger than the gross domestic product of Ireland and every state budget in the U.S.