Insight
Equity Diversification in Europe’s DC Market
We explain why global small-cap equities provide strong potential to enhance equity diversification and excess return in European DC markets, especially for active managers.
Key takeaways
- Although equities have the highest allocation in European DC portfolios, there is minimal diversification of equity choices, especially within small-cap equity.
- We believe a market-cap-neutral allocation to global small-cap equities can enhance equity diversification in European DC markets.
- This approach may offer the potential to capture the broad market opportunity over the long term.