Breaking Free of Market Concentration: Canada is a case study for deliberate diversification
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MSCI World GDP Weighted Index | MSCI Multi-Asset Class Factor Models | MSCI Private Asset Indexes
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Global portfolios may look diversified until you check what is actually inside them. The U.S. now accounts for close to two-thirds of world equity-market value, up from about half in the early 2000s, and similar concentration has built up in fixed income and private capital. This paper examines GDP weighting as a governance-defensible way to reduce that concentration and identifies Canada, an under-owned market with a distinct sector mix and four government-targeted growth sectors, as a potential destination for reallocation.
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