Insights
In this commentary, we explore the underlying mechanics of what goes on inside a bond fund and how its price changes over time if interest rates experience a one-time increase. I. Introduction Interest rates are at historic lows, and while at the beginning of 2010 it seemed...
The white paper, “Creating Equity Portfolios,” poses the question “Why do we recommend certain equity allocations?” The paper reviews the nuts and bolts of diversification and the factors we consider in forming equity portfolios. By considering data and research on different asset classes, including U.S....
Research has shown that selection of asset classes is the most important factor in determining the variation in returns of an investment portfolio across time and among portfolios.[1] This paper reviews PW&Co’s approach to selecting asset classes for inclusion in portfolios. I. Defining Asset Classes An asset...
Having experienced a period of falling rates that have positively influenced the return on bonds, many people are worried about the prospects that interest rates will increase. We do not believe that we can profit by predicting interest rates or timing the market. We do...
Investment expenses can be a significant drag on investment performance. Some investment expenses are easily identified, and others are hidden from view. Authoritative studies of total investment expenses are scarce. The following table presents estimates developed by William J. Bernstein, an investment adviser and well...
