Building resilient global equity portfolios with active funds
by Anthony Doyle, Chief Investment Strategist, Pinnacle Investment Management
- ETFs that track the MSCI World ex Australia Quality Index are a popular way for investors seeking exposure to global companies with robust financials and stable earnings.
- However, the index’s methodology is not without significant weaknesses.
- This paper explores the structural flaws of the index and outlines how leading active strategies can serve as either alternatives or complements to a quality-focused allocation, ultimately supporting more resilient and adaptive global equity portfolios.
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