Morgan Stanley Tag

Proponents of the passive, index-tracking approach to equity investing often make their case ­­­by underlining the efficiency of stock markets. This is especially true of the US, where research and the speed with which information is translated into price movements can make stock selection a pointless exercise.

As part of our ongoing Gatekeepers research, we're focusing on a different sector each week. This week it's the global sector, the bestselling sector of the past year. Adviser portfolios tend to follow asset allocation templates that disaggregate global equities into regional, single-strategy funds, so you would expect the one-stop-shop global equity fund to be a less popular alternative. It’s a surprise, therefore, to see the Global Equity sector consistently topping the sales charts.