Some highlights from Monday’s FTfm.
Doubt rises over regular bond indices
Broad government bond indices typically weight country exposure by bond issuance. Indebted nations issue the most bonds, with the result that highly indebted countries make up the biggest proportion of these indices. Fund managers who choose bond funds are increasingly looking for funds based on indices that take a different approach.
Vanguard Europe acts on bond index funds
Vanguard Europe has decided to make changes to nine bond index funds to reflect concerns that market structure may change as central banks buy large amounts of bonds
Traditional VC sector loses firepower
The so-called corporate venture capital sector is thriving as companies look to make use of the cash on their balance sheet, while traditional VC operators are being held back by a decreasing appetite for risk among their pension fund and endowment backers
Passive DC funds say they’ll go active
More than half of the European defined contribution corporate pension schemes that invest their default funds in a purely passive manner intend to embrace active management within the next 12 months, a survey by Clear Path Analysis shows
Don’t tar all actives with the same brush
It is not the passive world that is the enemy but those in the active world who make us a target. In other words, the two-thirds of managers who consistently underperform and in the process give the rest of us a bad name, writes Peter Elston, strategist at Aberdeen Asset Management Asia