Allocation

The current trend on european small cap will continue, reversing a period of almost ten years in which small caps performed better than large caps. In the period ahead investors should think big, focussing on large companies with fat balance sheets and generous dividends.

Mike Story, economist at Western Asset Management, analyses the outcome of the four potential scenarios to the Eurozone crisis: no Eurozone restructuring, orderly Eurozone restructuring, disorderly Eurozone restructuring or Eurozone implosion.

The new family of indices has been specially formulated to provide users with high quality, tradeable pan-European and Eurozone indices.

According to new Research Foundation of CFA Institute book, Frontier Market Equity Investing: Finding the Winners of the Future, valuations are more attractive and, therefore, opportunity for future returns is greater in frontier markets.

A convex strategy seems to better correspond to long-term investors in terms of preference structures, potentially ready to give up some of their earnings to avoid losses that would be difficult to handle from an emotional point of view...