Enhancing Diversification | Mackenzie Investments

Enhancing Diversification

Yves Choueifaty, Founder and CIO of TOBAM, appeared on Bloomberg TV Canada on October 13, 2016, to address the misconceptions of passive investing and explain the methodology behind smart beta investing.

Enhancing Diversification

Yves Choueifaty, Founder and CIO of TOBAM, explains the inefficiency of market cap weighted indexes.

Key Points

  • Most people believe that passive management means a neutral allocation, but passive management often allocates to very biased portfolios.
  • TOBAM creates fully diversified and unbiased portfolios by building a collection of assets that have little correlation to one another.
  • TOBAM has found a way to measure diversification and apply it to indices and industries around the world. 

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