Result: Orbis Global's portfolio usually looks nothing like its benchmark, the FTSE World Total Return index.
The average 18-mo return for the Emerging Total Return Index (price index including dividends) is 22.4%.
For example, for the 18-mo period ending July 2001the MSCI Emerging Total Return Index was -36.4%, MSCI Emerging Price Index was -38.6%, and the structured note therefore was -28.6%.
Real estate derivatives are a way for investors to gain exposure to the asset class without the need to buy or sell properties by replacing the exposure of the real property to the performance of a real estate return index.
Two others have exposure to oil futures: iPath Goldman Sachs (nyse: GS - news - people ) Crude Oil Total Return Index Exchange Traded Note and PowerShares Deutsche Bank (nyse: DB - news - people ) Oil Fund.
The Absolute Return Distressed Index has produced a median return of 10.58% through October.
According to Rothstein Kass in a recent study, an index of women-led funds produced a net return of 9%, compared to a global index return of a mere 3%.
The rate of return on American index-linked government securities (also a real return) is roughly 4%.
The expectation that an index fund will get EXACTLY the return of the target index sets the stage for an interesting problem: Zero tracking error is achievable, but it comes at a very high price.
On a total return basis, the index has already provided investors with a positive return since the previous peak.
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In the case of an investor going long the total return of the NCREIF index, he or she would accept the total return on the NPI (paid quarterly) on a predetermined notional amount and agree to pay the LIBOR rate, plus a spread on the same notional amount.
There is a wide variation around the index return which at the tail can be devastating.
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Your expected return with a large, random portfolio is identical to the return on the index.
You could, for example, buy the iPath Dow Jones-AIG Lead Total Return Sub-Index or PowerShares DWA Emerging Markets Technical Leaders.
ETNs represent a general obligation of the issuer (or some other named counterparty) who promises to deliver the return of some index.
For example, the 18-month return of the index ending in February 2000 was 107.1% versus the note being capped out at 24%.
The "index return" includes dividends, but it's split out, quarter by quarter.
For example, the 18-month return of the index ending September 2001 was -49.7% versus the note being -39.7% due to the 10% buffer.
The iPath DJ-UBS Copper Total Return Sub-Index ETN ( JJC) is the most liquid of the exchange traded products that follow copper prices.
The other party to the swap would receive the same cash flows in reverse, pay the quarterly index return and receive LIBOR plus the spread.
Most offer a return over the life of the investment that is a multiple of the return on some index (or with its Bear Market Notes, the decline in that index).
The note consists of futures of contracts of seven agricultural commodities (soybeans, corn, wheat, cotton, soybean oil, coffee and sugar) and tracks the return of the Dow Jones-UBS Agriculture Total Return Sub-Index.
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With this sequence of bets you'll (a) be exposed to market losses to the extent of the money you paid for the trade, (b) get triple the index return up to 15%, (c) give up any gains above 15%.
The Bombay Stock Exchange SENSEX India Index has return nearly 20% in the last five years.
But as a search engine, we can do what we think is best to return a high quality index.
The Lipper Emerging Markets Fund index average return was 20.08 percent.
The PowerShares DB Agriculture Fund ( DBA) is based on the DBIQ Diversified Agriculture Index Excess Return, which tries to duplicate the performance of the entire agriculture sector.
Although behavioural financiers have spotted market anomalies, they have not shown that these can be systematically exploited: the average fund manager still struggles to produce a return that matches the index.
Another method is to swap the total return on the NCREIF index broken down by property sector, allowing investors to take a position in an alternate property sector in which they may not own properties, thus allowing investors to swap the returns from office related real estate for retail real estate.
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