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Composite Stock-Bond Indexes

Composite Stock-Bond Indexes - 5-1Composite Stock-Bond...

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Unformatted text preview: 5-1Composite Stock-Bond Indexes•Beyond separate stock indexes and bond indexes for individual countries, a natural step is a composite series that measures the performance of all securities in a given country•This allows examination of benefits of diversification with a combination of asset classes such as stocks and bonds in addition to diversifying within the asset classes of stocks or bonds5-2Composite Stock-Bond Indexes•Merrill Lynch-Wilshire U.S. Capital Markets Index (ML-WCMI)–Market-value weighted index measures total return performance of the combined U.S. taxable fixed income and equity markets–Combination of Merrill-Lynch fixed-income indexes and the Wilshire 5000 common-stock index–Tracks over 10,000 stocks and bonds5-3Composite Stock-Bond Indexes•Brinson Partners Global Security Market Index (GSMI)–Includes:•U.S. stocks and bonds•Non-U.S. equities•Non-dollar bonds•Allocation to cash–Matches a typical U.S. pension fund allocation policy–Close to the theoretical “market portfolio of 5-4...
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Composite Stock-Bond Indexes - 5-1Composite Stock-Bond...

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