Index deletions – The upside of getting dumped

Thursday 21 November 2024 | 17:00 - 18:00 | Webinar

Research shows that historically, buying index deletions lag the market by more than half in the year leading up to their removal from an index, but they outperform the market for at least five years after the breakup.

During this session, Rob Arnott, founder and chairman of the board of Research Affiliate will explore how established index providers add stocks to their index when they have become large and expensive, while dumping stocks that have experienced steep declines in valuation. Rob will also examine the deletion effect in popular indices and explore ways to mitigate this effect through thoughtful portfolio construction.

In this webinar you will:

• Examine and understand the research behind passive index construction and its effect on investment returns.

• Explore how to mitigate the “deletion effect” in your own portfolio through the addition of a completion portfolio of index deletions.

• Gain insights into the latest trends and approaches in passive index investing from industry experts.

Whether you’re familiar with the concept or new to this strategy, this webinar will provide valuable insights into why these often-overlooked stocks present compelling opportunities.

Timings

Registration: 16:55 
Event: 17:00 - 18:00 

Speaker

Rob Arnott, Founder and Chairman, Research Affiliates

Rob Arnott is founder and chairman of the board of Research Affiliates. Rob plays an active role in the firm’s research, portfolio management, product innovation, business strategy, and client-facing activities. He is a member of the Executive Committee of the board. Rob is co-portfolio manager on the PIMCO All Asset and All Asset All Authority funds and the PIMCO RAE™ funds.

Over his career, Rob has endeavored to bridge the worlds of academic theorists and financial markets, challenging conventional wisdom and searching for solutions that add value for investors. He has pioneered several unconventional portfolio strategies that are now widely applied, including tactical asset allocation, global tactical asset allocation, tax-advantaged equity management, and the Fundamental Index™ approach to investing. His success in doing so has resulted in a reputation as one of the world’s most provocative practitioners and respected financial analysts.

In 2002, Rob founded Research Affiliates as a research-intensive asset management firm intent on delivering innovative and impactful products and insights.

Prior to establishing Research Affiliates, Rob was chair of First Quadrant, LP, which he built up from the former internal money manager for Crum & Forster into a highly regarded quantitative asset management firm.  He also was global equity strategist at Salomon Brothers (now part of Citigroup), the founding president and CEO of TSA Capital Management (now part of Analytic Investors, LLC), and a vice president at The Boston Company.

Rob has published more than 150 articles in such publications as the Journal of Portfolio Management, Harvard Business Review, and Financial Analysts Journal, for whom he served as editor in chief from 2002 through 2006. Rob has received eight Graham and Dodd Scrolls, which are awarded annually by CFA Institute to the top Financial Analysts Journal articles of the year. He also has received four Bernstein Fabozzi/Jacobs Levy awards from the Journal of Portfolio Management. In 2013, Rob received the William F. Sharpe Indexing Lifetime Achievement Award. He is co-author of The Fundamental Index: A Better Way to Invest (Wiley 2008).

Rob received a BS summa cum laude in economics, applied mathematics, and computer science from the University of California, Santa Barbara.

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