Claire Peck
Special ReportGlobal emerging markets index investing: the case for an active component
Emerging market (EM) equities have an important role to play in broadly diversified institutional portfolios. Our data analysis shows that for investors who have a buy-and-hold strategy, an active component is needed to stay close to the benchmark because of trading costs and, more importantly, because of higher slippage costs by passive managers in downward markets.
