Beverly Chandler, Opalesque London: Researchers from the EDHEC-Risk Institute have reported the results of a study entitled "Assessing the Quality of Asian Stock Market Indices," which examined results for 10 major Asian stock market indices over the past decade.
Written by Narasimhan Padmanaban, Masayoshi Mukai, Lin Tang and Véronique Le Sourd, the team comments that indexation continues to play an important
role in global asset allocation. "Total
worldwide assets under internal indexed
management rose to $5.994 trillion as of
June 30, 2011, a 25% increase over $4.781
trillion as of one year earlier (Olsen 2011).
In addition, the market for exchange-traded
funds (ETFs), which are liquid tracking
vehicles for standard indices, has grown
at an annual rate of 30% over the last three
years globally, and is currently estimated
to be around $1.4 trillion worldwide
according to Deutsche Bank. In Asia, total
ETF assets increased by 20-30% annually
post 2008 and the number of products have
gone up by more than 200%. Currently
the total ETF assets in the Asia-Pacific
region are estimated at approximately
$81 billion (Blackrock 2010)." With this evidence of an increasing interest in indexing management and investing directly in tracking products for standard
market indices, both globally and in Asia, the researchers observed that there was little analysis of......................
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