All Asset allocation articles – Page 8
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White papersArticulating asset allocation across different time horizons
In a previous paper, we addressed the issue of how to set investment objectives. In this paper, we address another key issue in the definition of asset allocation: how to articulate it across different time horizons.
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PodcastSDGs: A Framework for Investing
Since the inception of the United Nations’ 17 Sustainable Development Goals (SDGs) in 2015, there has been a universal call to action to ensure peace and prosperity across the UN’s 193 member states by 2030.
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White papersAllocation Views - August 2022
We often comment in Allocation Views that it is appropriate to follow a nimble approach. This is no doubt a “timeless and universal” feature of our investment style, but it is especially pertinent today. As we always do, we look at the world through the lens of our three key themes and find reasons for caution across the board.
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White papersThree Reasons to Consider CLOs
The combination of wider spreads, strong structural protections and low interest-rate sensitivity presents a potentially compelling case for CLOs.
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White papersPrecautionary Liquidity and Retirement Saving
There is a large debate on the optimal degree of savings’ liquidity in retirement systems. Liquid retirement savings allow people to flexibly respond to life events such as income shocks but can also lead to undersaving.
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White papersReal Estate: Built to Withstand Both Inflation and a Slowdown
Real estate could serve as a foundation for portfolios in an environment of high inflation, rising interest rates and slowing growth, and investing at the real estate company level can offer valuable advantages during a time of market uncertainty.
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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 papersMiViews Q3 2022: Something’s Gotta Give
Recession fears are growing while central banks continue to aggressively tighten to fight inflation. Although major central banks are now well engaged in the normalisation cycle, many are still well behind the curve, especially in developed countries. Although equity and bond markets have already suffered significant losses this year, ...
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White papersIs The End Nigh?
The first half of 2022 ended on a truly sour note for financial markets, with central banks aggressively tightening while economies are weakening. In the past, any sign of a marked slowdown in the developed world would be met and resolved by the (in)famous Greenspan “put”, a quick and convenient fix to calm the markets and revive the economy via lower rates or quantitative easing, or a combination of both.
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White papersWhat Is Volatility Saying About The Macro Narrative?
The macro narrative changed considerably over the last 12 months: from a transitory inflation shock to runaway inflation, from supporting growth and unemployment to fighting inflation, from liquidity injections and goldilocks to balance sheet reduction and the end of easy money. As a result, financial markets reacted sharply to this regime shift, affecting returns, correlations, and dispersions across and within assets.
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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 papersMidyear outlook: Income arrives in many shapes and sizes
The first half of 2022 has been challenging for investors across asset classes, and the uncertainties plaguing markets remain—particularly with regard to inflation, interest rates and the possibility of recession. As we look toward the second half of the year, our investment management teams gathered to discuss where income-seeking investors may find opportunities. Below are highlights of our discussions.
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White papersMulti-Asset Allocation Views: Growth headwinds continue to build
Growth headwinds continue to build
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White papersGlobal High Yield — Recent Rout Provides Attractive Entry Point for New Allocations
High yield markets took a significant turn during June and consequently spreads, sentiment and distress levels deteriorated quickly. The Fed’s outsized 75bp hike and a surprise contraction in consumer spending in recent weeks drove concerns for retailers specifically. Investor flows have also been negative.
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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 papersTech Stock Valuations Have Become Reasonable
Although tech stocks have sold off steeply year-to-date and their valuations seem reasonable versus recent peaks, they are still not cheap when compared to the broader market. Given our continued caution toward this heavily growth-oriented sector, our Asset Allocation Committee recently added to growth stocks but remains underweight relative to value.
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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.
