Latest news with #ACWI
Yahoo
a day ago
- Business
- Yahoo
MSCI announces changes to equity indexes
NEW YORK (Reuters) -MSCI said on Thursday it will add 42 securities and delete 56 from its widely followed ACWI equity index. The three largest companies by market cap to be added to the developed markets index are Rocket Lab Corp, Sofi Technologies and Affirm Holdings, all headquartered in the United States. The three largest companies to be added to the emerging markets index are China Citic Bank, Dian Swastatika Sentosaand Laopu Gold. All changes will be made as of the close of August 26, MSCI said. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Reuters
a day ago
- Business
- Reuters
MSCI announces changes to equity indexes
NEW YORK, Aug 7 (Reuters) - MSCI said on Thursday it will add 42 securities and delete 56 from its widely followed ACWI equity index (.MIWD00000PUS), opens new tab. The three largest companies by market cap to be added to the developed markets index (.WORLD), opens new tab are Rocket Lab Corp (RKLB.O), opens new tab, Sofi Technologies (SOFI.O), opens new tab and Affirm Holdings (AFRM.O), opens new tab, all headquartered in the United States. The three largest companies to be added to the emerging markets index (.MSCIEF), opens new tab are China Citic Bank, Dian Swastatika Sentosa ( opens new taband Laopu Gold ( opens new tab. All changes will be made as of the close of August 26, MSCI said.
The Herald Scotland
19-07-2025
- Business
- The Herald Scotland
Is it time for investors to rethink 'balanced' portfolio?
Looking at the classic 60/40 portfolio, equities tend to be significantly more volatile than bonds, meaning they contribute disproportionately to portfolio fluctuations. Add to that the fact that the equity portion is often dominated by a handful of tech giants, and the picture becomes even more skewed. For example, the top 10 US companies in the S&P500 account for nearly 40% of the index, with technology companies making up an even higher share. What many investors perceive as diversified is, in fact, highly concentrated. Looking outside of US markets for diversification may seem like a logical step, but global equity benchmarks have also become increasingly US-centric. In the 1980s, the US made up about one-third of the MSCI All-Country World Index (ACWI). Today, it accounts for some two-thirds. This shift means that even international portfolios are heavily influenced by US market dynamics. Historical data show that every major correction of 10% and more in US equities over the past 30 years has coincided with similar or worse declines in international stocks. In other words, geographic diversification may not offer the protection investors expect during market downturns. We believe that expected returns, especially from the equity component of the 60/40 strategy, at least if it's left predominately in US equities, are unlikely to deliver what investors are looking for over the medium to long term. The starting valuations are high and so our long-term returns forecasts are low (sub cash over 10 years). But added to that, over the past few years the equity-bond correlation has started to turn increasingly positive, meaning that equities and bonds have had a tendency to behave similarly. This is a stark change to when 60/40 portfolios became the norm, when correlations were negative. Why the change? We have seen more inflation shocks hitting the global economy – from things like volatile geopolitics, supply chain disruptions, and climate change. Inflationary shocks push up on inflation and down on growth, so they push up on bond yields (which means they push down on bond prices) and down on equity prices. We believe these sorts of shocks will become more common in the future. To genuinely reduce the risk of large drawdowns, investors need to think beyond the number of holdings and focus on the underlying risk factors driving returns. A portfolio with thousands of securities may still be vulnerable if those assets are all influenced by the same economic forces. One alternative is a cross-asset strategy that allocates across equities, bonds, currencies, commodities, and gold – balancing each asset's contribution to overall portfolio risk. A model portfolio could include: Equities, bonds (US 10-year treasuries), private markets such as infrastructure, real estate and private equity; commodities; and gold. Of course, avoiding large losses is critical to compounding returns and preserving wealth – especially for those nearing retirement or needing access to their savings. By focusing on true diversification across uncorrelated risk factors, investors can build portfolios that are more resilient to shocks and better positioned for long-term success. Of course the challenge is to build portfolios that truly have that full balance of risk, and the importance of private markets to diversify and help people build long term financial resilience is very much on the political agenda. There is no question that we need more solutions for investors and slowly, choice is opening up, particularly when it comes to pensions. Maximilien Macmillan is head of macro investments at Aberdeen
Business Times
11-07-2025
- Business
- Business Times
Citigroup sets mid-2026 target of 1,150 for MSCI's global equity index
CITIGROUP on Friday (Jul 11) introduced its mid-2026 target for the MSCI All Country World Index (ACWI) Local as it expects global equity markets to be rangebound until year-end, with 'meaningful' gains coming in the first half of next year. The Wall Street brokerage set a target of 1,150 for the benchmark global equity index, implying an upside of about 5 per cent to its last close of 1,100.213. 'Our targets imply the most upside in Japan and Europe over the medium term,' Citi said. The brokerage maintained its preference for European stocks among global equities, but downgraded Japan to 'neutral' on concerns over near-term tariff risks and the strength of the Japanese yen. Global equities have climbed back to all-time highs after a volatile first half of 2025, even as the economic outlook looks uncertain broadly due to US President Donald Trump's tariffs and geopolitical tensions. Citi set its 2026 year-end earnings per share (EPS) growth for the index at above 11 per cent, which remains below consensus estimates of more than 13 per cent. 'Though still positive on average, bottom-up EPS forecasts around the world have been under pressure, as markets grapple with trade tensions and geopolitical uncertainty,' the brokerage said, as it estimated an EPS growth of just above 5 per cent for this year. Citi maintained its 'neutral' stance on US equities, and 'underweight' on emerging markets and Australia. On the global sector front, it reiterated its 'overweight' view on technology and 'underweight' rating on consumer stocks. REUTERS
Reuters
11-07-2025
- Business
- Reuters
Citigroup sets mid-2026 target of 1,150 for MSCI's global equity index
July 11 (Reuters) - Citigroup on Friday introduced its mid-2026 target for the MSCI All Country World Index (ACWI) Local as they expect global equity markets to be rangebound until year-end, with "meaningful' gains coming in the first half of next year. The Wall-Street brokerage set a target of 1,150 for the benchmark global equity index (.dMIWD00000P), opens new tab, implying an upside of about 5% to its last close of 1,100.213. "Our targets imply the most upside in Japan and Europe over the medium term," Citi added.
