All Asset allocation articles – Page 4
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White papersBreadth and Balance
The economic outlook may have improved, but large parts of the credit and equity markets are fully valued.
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White papersCapital Market Assumptions 2024
Last year we enhanced our Capital Market Assumptions approach by including a social dimension considering the impact of rebalancing labour / profits on earnings. This social component was added to the climate change assumptions introduced in 2022, which evaluate how the future trajectory of the energy transition will affect the key economic variables driving our forecasts (GDP growth, inflation, productivity, etc.), and the way we model asset class behaviour – with regards to earnings growth in particular.
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White papersRelative Value & Tactical Asset Allocation Q2 2024
Global Economy is Weighed Down by Geopolitical Crises and Policy Uncertainties
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White papersThe appeal of private assets in 2024
The macro environment in 2024 will likely spur demand for private assets from all types of investors in our view. In this higher-for-longer environment, private assets could continue to be a compelling source of risk-adjusted returns, income and diversification.
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White papersPrivate Credit Allocations vs Leveraged Loans and High Yield
The growth of private credit assets under management in recent years has drawn increasing interest and scrutiny from investors. The scale of the expansion suggests a strong appetite among investors, but the lower liquidity and naturally opaque nature of private credit can make comparisons with public credit alternatives such as leveraged loans and high yield bonds difficult.
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VideoUn-picking the Role of ESG
Environmental, social and governance (ESG) considerations tend to be factored into the investment process at the security-level, after a strategic asset allocation (SAA) process has already set the shape of the overall portfolio.
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White papersThe Case for Allocating to Emerging Market Debt
Emerging market debt (EMD) is a versatile asset class. It offers equity investors risk mitigation potential with modest return dilution. For fixed income investors willing to move out on the risk spectrum, EMD still presents a significant yield pick-up opportunity.
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White papersHow Mega-Forces Will Reshape the Macro Regime and Investing
Three mega-forces seem set to dominate the investment landscape for the next decade or longer, with major implications for the macro regime and portfolio design.
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PodcastIs it Time for Fixed Income?
Global Head of Public Assets, Martin Horne, discusses the factors shaping the outlook for fixed income markets in 2024 including interest rates, corporate fundamentals and valuations.
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White papersAdapting to higher interest rates while optimizing prudential capital
As we enter 2024, the financial terrain remains shaped by high interest rates likely to persist at least through the first half of the year.
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White papersDesigning Multi-Asset Income: It’s Complementary
Multi-asset income strategies are becoming more popular, but some may bake in more risk than expected. The key is designing complementary exposures.
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PodcastThe Investment Podcast: The great global election cycle
As billions of people vote in national elections in 2024, including seven of the world’s 10 most populous nations, our panel of cross asset class experts looks at the issues and potential unique and overlapping implications at play across developed and emerging markets – from the US and UK to South Africa and Mexico. They also analyse what asset allocators are watching, including the influence of outcomes on fiscal, monetary and climate policy, the impact on asset prices and potential mispricing opportunities.
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White papersDare to diversify
‘Don’t put all your eggs in one basket’, or at least not too many eggs, is a widely known maxim. These days, however, a benchmarked global equity portfolio has a very high share of US ‘eggs’. The market capitalisation of the MSCI World and MSCI All Country World indices represented by the US is at all time highs. The large weight partly reflects highly valued mega-tech and artificial intelligence companies.
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White papersCapital Market Assumptions 2024: Implications for European Insurance Portfolios
Optimizing insurance portfolios for the road ahead.
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White papersBond Investment for Tough Times
Martin Horne recently spoke with IPE about his outlook for credit, what we can expect in the new era for fixed income and what sets Barings apart.
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White papersCrossover bonds: tilting to income and quality
This insight concludes a three-part series about investing in crossover corporate bonds rated BBB to BB1. Here, we look at the tactical macro rationale for investing in crossover. The second insight made the strategic case for this segment of ratings by delving into strong fundamentals, favourable valuations and regulatory drivers. The first insight introduced crossover and explored how the segment could replace investment grade (IG) in an allocation.
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White papersA Snapshot of Asset Allocators’ Views
We spent several days in late January with a group of Chief Investment Officers and senior asset allocators. This was useful both as a way to hear the key concerns for a significant group of investors and as an opportunity to think about what one might do in response.
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White papersEurope: time for fiscal consolidation
The public finances of Eurozone countries began to improve in 2023 and fiscal consolidation will intensify in most Eurozone countries during 2024. Still, fiscal vulnerability – particularly for the most heavily-indebted countries – will rise over time, leading to a higher probability that public debt will not stabilise. The aim of the new fiscal rules is to ensure the longterm sustainability of public finances, but funding for the green transition could suffer.
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White papersWhat does waning risk appetite mean?
The first week of January is usually a positive one for markets, and this is mainly due to various reallocation flows. However, the first week of 2024 followed two months of high returns on equities and bonds. A moment’s pause is probably in order to take stock of recent valuations. Is the Federal Reserve’s (Fed’s) pivot and the long-predicted soft landing already fully priced in? In this weekly edition of Simply put we ask whether declining risk appetites point to a weaker outlook.
