RenAsset argues the case for equally-weighted portfolios

RenAsset's Plamen Monovski has argued an equally weighted fund is the most effective way to invest in emerging markets, but said the concept has yet to gain much recognition.

Monovski (pictured), who is chief investment officer at RenAsset and also runs the group’s Eastern European fund, said the benefits of equally-weighted portfolios include less volatility, and more under-researched companies featuring in a fund.  He told delegates at Investment Week's Channel Islands Investment Summit: “I am stunned that equal weighting has not been done in emerging markets. It is very well understood in the academic literature but, even in developed markets, people do not do it very much.”  The Eastern European fund holds 100 stocks at 1% each, selected from a univers...