All Asset allocation articles
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White papersThe Scale Effect: How Size Shapes Investment Governance and Allocation
Recent years have witnessed a trend in pension plans towards larger size, as large institutions continue to gather assets and as smaller investors group together to emulate their larger peers’ perceived successes.
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White papersEMD: A credible long-term asset allocation candidate
Using cluster analysis and regression techniques, this paper highlights the importance of active management and bottom-up fundamental research in effectively navigating the multifaceted emerging market debt (EMD) landscape.
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WebinarWebinar Replay - What’s Your Alternative?
To examine institutional use of private market assets, PGIM and Institutional Investor’s Custom Research Lab partnered to survey more than 250 investment decision makers at institutions in Europe and the Middle East, representing approximately $10 trillion in assets under management. Private assets make up ~25% of current respondents holdings, but what does the future hold? We take a closer look at how allocators across EMEA are thinking about private alternatives.
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White papersStrategic Value Dividend: Why now, why always
Dividends offer stability in times of uncertainty, but, as Dan Peris, Head of Income and Value Group, argues, the returns they generate make them a smart choice in any market.
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White papersAsset Allocation Committee Outlook 4Q 2024
“We do think the Fed will get the first 100 basis points done quickly, but we see the central bank aiming for a return to a neutral rate, rather than an accommodative one—and in a soft-landing environment that would justify a rate cut pause around mid-year 2025, in our view.”
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White papersAsset Allocation at Official Institutions: Taking the Three Critical Steps
A deeper dive into our optimized portfolios for Central Bank Reserves, Sovereign Wealth Funds and Public Pension Funds.
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White papersWhat’s your alternative? How institutional investors in EMEA are thinking about Private Alternatives
Private alternative assets are playing a greater role in institutional portfolios, driven by the pursuit of higher returns, diversification, and the increasing private market investment opportunity set. In a report published in March 2024, management consultancy McKinsey estimated that assets under management in global private markets totalled $13.1 trillion as of June 2023, and have grown nearly 20 percent per year since 2018.
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White papersPrivate Markets Investment Outlook Q4 2024: Reasons to be optimistic
A continued decline in inflation, the beginning of normalising central bank rates, and an improved capital demand/supply balance create a favourable environment for private market investments. However, persistent geopolitical tensions underscore the need for diversified allocations.
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White papersPrivate Equity insight: The art of the exit
Developing a clear and bespoke exit strategy is both a science and an art, especially in a market where exits are gridlocked; where private equity holding periods are being extended; and where the disconnect between buyers’ and sellers’ valuations remain stubbornly wide.
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White papersRates Relief or Slowdown Uncertainty?
Our outlook for lower rates and a soft landing favors U.S. small caps, and we are watching China’s new stimulus closely for its impact on global cyclical assets.
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White papersAmplified Volatility Leads to Muted Bets
To get through the current environment, we think it is important not to chase the markets, but to let them come to you.
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White papersRisk Factor, Risk Premium and Black-Litterman Model
Risk factor models are now widely used by fund managers to construct portfolios and assess both return and risk based on the behaviour of common risk factors to which the portfolios are exposed. However, fund managers often have subjective views on these risk factors that they may wish to incorporate into their asset allocation strategies.
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White papersRelative Value & Tactical Asset Allocation Q4 2024
We are anticipating a stable macro environment in the near future, with some uncertainties stemming from U.S. elections and monetary policy. We continue to look for spreads to mostly remain range bound, with a low chance of further tightening. With a low risk of recession, a carry strategy is preferred in the next quarter or two, meaning we prefer investments with attractive yields, while remaining cautious about potential weakness.
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White papersEmerging Markets: How Structural Shifts are Leading to Strong Tailwinds
Prior to the onset of COVID-19, much had been written about the appeal of emerging market debt (EMD), touting the yield advantage as well as its lower correlation to other fixed income asset classes. EMD has underperformed since then, leaving investors in Switzerland and beyond to wonder if and how EMD fits into their asset allocation. After a difficult start to the 2020s, we believe EM debt is now poised to outperform as headwinds from sharp increases in interest rates and slower growth are now reversing course. Thus, the tailwinds from lower rates, higher growth, and improving credit quality are setting the table for positive EM performance going forward.
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White papersPrime Time for CLOs
In this Pensions & Investments Q&A, Adrienne Butler breaks down the qualities that make CLOs a solid investment amid shifting market dynamics and the potential for further rate cuts.
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VideoCapitalizing on the Opportunity in Portfolio Finance
With direct origination capabilities, a proven track record, and an offering of differentiated solutions, our dedicated team has the ability to provide investors access to a unique and rapidly growing private investment grade asset class.
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White papersThe Fundamentals of Japan
Donghoon Han and Shuntaro Takeuchi explain why macroeconomic developments in Japan and the U.S., and its associated market volatility, don’t negate from the longer-term prospects of Japanese equities.
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White papersIndia: the emerging market outlier
Underlying economic factors make India an emerging market like no other.
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White papersGenerating returns in uncertain regimes
As the last few years have aptly demonstrated, pandemics, wars and wildly fluctuating economic variables such as surging inflation and sweeping interest rate hikes have all contributed to heightened periods of uncertainty and volatility in financial markets, often at the expense of patient and unassuming long-term investors. Stuart Canning, Fund Manager in M&G’s Multi Asset Team, assesses the value of Dynamic Multi-Asset allocation in a world of shifting expectations.
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White papersAsset Management Mid-Year Outlook 2024: Cutting Through Complexity
As we head into the second half of 2024, our investment teams share their views on the most meaningful market trends and potential opportunities and risks.
