All Asset allocation articles – Page 30
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White papers
Cross Asset Investment Strategy: November 2017
After a less than thrilling summer, since September, equity markets have been relatively immune to news flow on the geopolitical front, despite North Korea’s nuclear threats and the crisis regarding Catalonia, which remains broadly unresolved.
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White papers
Global Investment Views: November 2017
After a less than thrilling summer, since September, equity markets have been relatively immune to news flow on the geopolitical front, despite North Korea’s nuclear threats and the crisis regarding Catalonia, which remains broadly unresolved. We see two main reasons for the uptick in equity market performance:
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White papers
Why multi-asset strategies suit a changeable world
For the past 35 years, a ‘set and forget’ strategic asset allocation has worked well. A typical 60:40 asset mix of equities and bonds had around the same volatility as a pure 100% bond portfolio, but with a better return. It is not likely to be as fruitful moving forward.
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China’s state-managed overseas expansion
China’s clampdown on overseas acquisitions this year, accompanied by the detention of some high-profile corporate bosses, seemed to confirm the worst about the risks faced by private conglomerates and billionaire tycoons.
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White papers
Bond Connect opens access to China’s debt markets
Bond Connect is the latest manifestation of China’s gradual opening up of its capital markets to international investors. The pilot scheme, launched by China and Hong Kong in July, gives foreign institutional fund managers a new route to China’s RMB69 trillion ($10 trillion) interbank bond market (CIBM).
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White papers
Australia cautious on dividends
A generation of Australians has enjoyed a record 26 years without experiencing a recession. The country has withstood global financial crises, endured volatile commodity prices and export revenues, and shrugged off warnings of housing bubbles and declining domestic savings.
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Asia tech: boom, bubble or bust?
Technology has been the best-performing stock market sector throughout the world this year, accounting for around half of US and emerging market Asia equity returns so far. The spectacular rise has aroused scepticism about its sustainability at the same time as other investors remain convinced about the prospects for further growth and higher earnings.
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White papers
A hard landing for the Gulf’s high flyers
Three airlines face disruption to their role as ‘superconnectors’ as the state-owned groups fight to justify a business model built around hubs in a volatile region.
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White papers
10 reasons to invest in Asia bonds
Asia’s fixed income markets are now a key part of diversified, international bond portfolios. Issuance volumes continue to rise to record levels, there is a wide range of issuer-type, yield and tenor, and the pool of regional liquidity is growing.
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White papers
Opportunities in...Asian fixed income
The Asian fixed income market is often at a different part of the economic, political and credit cycle to core western markets – this can include economic growth that surpasses most other regions. In an investment world that often seems devoid of income without excess risk, Asian fixed income can offer a compelling proposition in both a relative and absolute sense.
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White papers
Opportunities in...UK Equity Income
Valuations in some global markets are looking stretched, but UK equities remain attractively valued relative to many international counterparts. Uncertainty around Brexit and heightened political risk has led global asset allocators to be underweight UK equities, creating valuation anomalies. We pay attention to factors that are harbingers of potential dividend reductions.
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Opportunities in...European Corporate Bonds
Why European investment grade corporate bonds? At a time when attention is increasingly focused on a gradual reduction in US and European monetary stimulus, the European investment grade corporate bond market presents investors with an increasingly broad investment opportunity set focused on the rapidly evolving European market.
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White papers
Asset Allocation Update: What will upset the Goldilocks environment?
How to identify the future political and monetary policy events that will dominate market discussions is critical. It is our job to filter out noise and determine what signposts, events or issues are truly meaningful in terms of their potential impact on markets. This feels particularly pertinent at present, when the broad global macroeconomic environment can be characterised as ‘Goldilocks like’, with decent global growth and only gentle rises in inflation
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White papers
Strategic Relative Value: Q4 2017
A quarterly look at how macro events are driving relative value around the globe.
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Global Investment Views: October 2017
Ongoing dovishness from Central Banks and higher geopolitical risks are the divergent forces driving financial markets at this point.
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In Credit: Abenomics 2.0
It was a mixed week for core government bonds with yields rising in Europe and the US, but falling in the UK and largely unchanged in Japan where Shinzo Abe won a large majority in last weekend’s general election. This victory leaves the road clear for more ultra-easy monetary policy in an economy that is growing but has so far failed to produce much in the way of inflation (Nationwide core CPI = 0.0% y/y).
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In Credit: The calm after the storms?
Core bond yields were flat in Japan, a touch wider in the UK and lower in the US and Europe last week. The International Monetary Fund raised its global GDP forecast marginally to 3.6% for 2017 ( 0.1%) and 3.7% for 2018, driven largely by an improved outlook in the US, Europe, Japan and China.
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White papers
Economic Insights: September 2017
Global expansion stays on track: The global economic recovery that began in early 2016 has reached a self-sustaining velocity.
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White papers
In Credit: Corporate bond spreads tighten to post GFC lows
It was a fairly astonishing week in terms of news, though core bond markets were not much moved after the sell-off of recent weeks. Firstly in Europe, the ever-present issue of political cohesion was on the agenda again.
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White papers
Cross Asset Investment Strategy: Fed & ECB - Towards a reduction in monetary accommodation
The improvement of global economic conditions will allow the Fed and the ECB to reduce the degree of monetary accommodation, each with its own scale: continuation of the fed funds rate hike cycle for the Fed and reduction of asset purchases for the ECB.