All Asset allocation articles – Page 12
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White papersAmundi Pension Funds Letter n°15
As holidaymakers resume their familiar summer breaks and crowds return to the Champs-Elysées to cheer on the final stage of the 2022 Tour de France, elsewhere established customs and trends seem less secure. One could say that this period of transition has been ongoing for some time. But in 2022, a new phase clearly unfolded, one unique to our times, but at the same time also hugely familiar. A phase where everything takes on a geopolitical slant.
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PodcastForgo FOMO: Growth Investing for the Long Term
In light of the swings in today’s market environment, investors are shifting their asset allocation decisions to accommodate its volatility. As they grapple with what the options are, we look to growth stocks, which we believe have the potential to outperform the overall market over time though may require a higher risk tolerance.
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White papersMidyear Strategic Investment Outlook: What Does the Market Move Mean for Strategic Investors?
Many people say they like to be long-term investors. It’s a laudable ambition, but often the short term gets in the way. Our notes typically focus on the strategic horizon, but when the S&P 500 falls by 20%, 10-year Treasury yields rise by 140 basis points and Bitcoin is down by 60% since the start of 2022, strategic investors need to respond.
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White papersFixing Defined Contribution: A five-pronged approach
In this paper, we provide a flavour of what needs to change if defined contribution (DC) outcomes in the UK are to improve materially and sustainably and good outcomes are to become the norm. Spoiler alert: it isn’t just the one silver bullet that’ll fix DC.
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White papersMarket Scenarios and Risks - July/August 2022
We keep the probabilities of our central and alternative scenarios unchanged vs. last month. The new wave of Covid-19 and stagnation in the Eurozone are adding growth uncertainty over the short-term.
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White papersCross Asset Investment Strategy - July/August 2022
The current repricing is a reminder of a regime shift in which stagflationary concerns are becoming prominent. Investors should move towards quality segments in credit and equities, and aim to benefit from the regional divergences that allow us to prefer US (over Europe) and now Chinese equities, but strong selection is important.
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White papersInto the Inflationary Slowdown
As inflation persists and recession risks rise, our Asset Allocation Committee sees more yield potential in fixed income and favors commodities for ongoing inflation exposure, but remains cautious in equities.
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White papersSwitching Gears for an Uphill Ride: Combining Capital Preservation, Return Potential and Liquidity for Official Institutions
In the second of our articles on working with Official Institutions, we ask whether portfolios can be built to withstand a profoundly changed outlook for the economy and investment returns without blowing through their risk constraints.
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White papersOptimising the core – how insurers can enhance fixed income portfolios
Insurers are increasingly looking to broaden their staple diets of traditional fixed income and introduce exotic flavours of credit to the core investment portfolio in order to satisfy their appetite for higher risk-adjusted returns, diversification of risk and greater capital efficiency.
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White papersAfter the Revaluation, the Slowdown
Our Asset Allocation Committee believes that, whether we enter a recession or not, the expected slowdown and ongoing market volatility could feel like one for investors.
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White papersStock-Bond Correlation: A Global Perspective
The correlation between stock and bond returns has been reliably and persistently negative for the last two decades across Developed Markets (DM) – matching the US experience. During this regime, stocks and bonds have hedged one another, dampening overall portfolio risk for a given level of equity allocation.
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White papersThe Fed Can’t Stop, Won’t Stop
The Fed turned more hawkish this week, upgrading its outlook for the Fed Funds rate, and lowering its outlook on growth—leading to a risk-off tone in markets. Meanwhile, the ECB announced a new tool to help address the uneven transmission of monetary policy normalization.
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White papersA (stag?)flationary tantrum: assessing the current market sell-off
We are entering a tough phase of the regime shift, as the risks over economic growth add to the already hot inflationary backdrop. This means that stagflation fears will continue to drive the market and risk assets are likely to remain very volatile, particularly the most indebted companies and those with still excessive valuations.
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White papersWhy it is essential that we close the SDG data gap, and how it can be done
As sustainable finance evolves from ESG ratings and risk management, investors are increasingly asking for tools to help align their investments with actual sustainable outcomes. Now, Danish fintech Matter and BNP Paribas Asset Management have developed a dataset that provides a detailed, conservative analysis of how the revenues of more than 53 000 companies align with the UN Sustainable Development Goals (SDGs).
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White papersMarket Scenarios and Risks - June 2022
We keep the probabilities of our central and alternative scenario unchanged versus last month but amend the narrative to take into account the evolving geopolitical situation (see Ukraine crisis tree).The new wave of Covid-19 in China and stagnation in the Euro-area are adding growth uncertainty over the short-term.
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PodcastAll the Credit, Ep. 27
Although the traditional asset allocation portfolio mix of 60% stocks and 40% bonds has been a widely adopted investment approach that has spanned decades, a lower interest rate environment coupled with the underperformance of equities and bonds, has investors questioning the validity of the 60-40 asset allocation model. While we also see this portfolio structure as flawed, it’s not for the reasons that others have suggested.
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White papersAsset Class Return Forecasts - Q2 2022
The continuing surging inflation due to the supply shocks and the Ukrainian conflict have dominated headlines compounding to the possible repercussions surrounding climate change, further affecting economic and financial indicators in the medium term and beyond.
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White papersAre pension funds set to flex their financial muscle in climate fight?
Pension allocations to climate funds - including in the private assets sphere - are likely to increase dramatically, with potentially vital consequences in the real world.
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White papersShifts & Narratives #17 - Keeping up with climate change in setting long-term asset class views
Today climate change is arguably the most critical long-term challenge that humanity is facing. “Climate action failure” is not only the top longterm threat in the World Economic Forum’s Global Risks Report for 2022, but is also a key element for investors to factor in when building long-term assumptions on the economy and markets.
