Research: Reports and White Papers
Investment
By: PWL Capital Research Group
Abstract
When investors opt for currency-hedged foreign-equity funds, they usually assume that this will eliminate the impact of currency fluctuations and get them a return similar to a domestic portfolio. This paper documents many of the pitfalls of currency hedging, through a study of S&P500 index funds offered on the Canadian retail marketplace. I conclude that currency hedging can be far more expensive than expected. Most of these costs can be attributed to the unforeseen but significant technical challenges involved in effectively hedging an equity portfolio. Institutional and retail investors are equally exposed to these high costs. While it is clear that perfect hedging is unattainable, I propose a procedure that may potentially reduce the cost of hedging.*
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By: PWL Capital Research Group
It has been our experience that portfolio rebalancing is one of the very few ways to generate
additional returns for a portfolio without incurring any additional risk. It is interesting to note
that while rebalancing is a significant source of added value, some of the most popular
investment books don’t even mention it.
So, what exactly does rebalancing entail?
Source: PWL Capital
Pages: 4
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By: PWL Capital Research Group
October 2008 stock returns will go down in history as one of the most difficult months for market returns
in the last century. The table illustrates what you have been hearing in the media...
Source: PWL Capital
Pages: 2
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By: PWL Capital Research Group
The ongoing US mortgage crisis has developed into a banking crisis, which has, in turn, led to the stock market decline we have experienced in the last few weeks. Several analysts and commentators think we’re heading into a recession and an equity bear market. Regarding the recession, they may have it right.
Source: PWL Capital
Pages: 3
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By: PWL Capital Research Group
When it comes to investments, too many individuals and professionals focus on returns and pay little attention to risk. Read the latest mutual fund reports in the newspaper and you will notice that risk is rarely mentioned. In our opinion, ignoring risk is one of the worst mistakes that an investor can make.
Source: PWL Captial
Pages: 8
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By: PWL Capital Research Group
PWL Investment Research / Education
Source: PWL Capital
Pages: 54
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By: PWL Capital Research Group
Creating A Successful Investment Experience
Source: PWL Capital
Pages: 18