Unlike traditional bonds, Floating-rate bonds (FRB) do not have a fixed rate coupon. Instead, their rate fluctuates or floats based on the market plus a spread. As a result, FRBs tend to be less vulnerable to interest-rate fluctuations. Many believe FRBs can help preserve principal, while...

Americans are rapidly losing their pensions — replaced by savings plans disguised as retirement plans.Many sponsors view defined contribution (DC) plans as the best option for retaining some of the features of a pension plan without bearing all of the costs and risks of DB. This paper explores...

In 1994, Josef Lakonishok, Andrei Shleifer, and Robert Vishny published a landmark study investigating the performance of value stocks relative to that of glamour securities in the United States over a 26-year period. Their research concluded that value stocks tended to outperform glamour stocks...

Previous research by the Brandes Institute has shown the historical long-term performance advantage of value stocks over glamour stocks. What about corporate bonds? Here, we show that bonds issued by value companies have provided greater appreciation than those issued by glamour companies

In Value vs. Glamour: The Challenge of Expectations, the Brandes Institute examines the historical performance of individual glamour and value stocks. We believe this performance data demonstrates why investors should be cognizant of the relationship between stock price and value. The specific...

The Brandes Institute extends a landmark academic study on the comparative performance of value and glamour stocks in the United States to cover a 38-year period. Extending the results of the seminal 1994 study conducted by Professors Josef Lakonishok, Andrei Shleifer, and Robert Vishny, we...

According to the Chinese zodiac, 2017 is the year of the rooster. But Dr. Wai Mun Fong, Associate Professor at National University of Singapore (NUS), member of the Brandes Institute's Asia-Pacific Advisory Board and winner of the 2015 Brandes Institute Prize, urges investors to be more like...

During the last two decades of the twentieth century, the investing world saw declining dividend and bond yields, with prices generally moving higher for both equities and bonds. In the early years of this century, investors seemed to belittle the importance of income as a component of returns,...

Today's reality is that increasingly, plan sponsors are trying to find practical ways to evolve the DC structure away from its original purpose as a supplementary savings plan to be more effective as a retirement plan for both sponsor and participant.This article is designed as an ongoing...

Consultants at Cambridge Associates have shown how to build what they believe is a better "core-satellite" portfolio. Get rid of the passive core component (such as an S&P 500 Index fund) completely and load up on the satellites.The team compared hypothetical core-satellite portfolios with...