All Asset allocation articles – Page 9
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White papersWhy are fallen angels the pick of high yield?
How could fallen angels offer a high-yield (HY) exposure of superior quality in a strategic allocation? We consider how investors can use these bonds to improve performance potential while mitigating relative ratings risk. In our previous insight of this three-part series, we made the case for a dedicated allocation to the segment due to the ability of price recovery to drive outperformance, and a compelling supply outlook.
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White papersAsset Allocation Committee Outlook: 2Q 2023
Despite equities holding up well so far in 2023, the Asset Allocation Committee remains cautious, anticipating volatility as we approach peaks in rates and inflation and troughs in economic growth and earnings.
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White papersWith High Yield, Shorter May Be Better for Insurers’ Yields…and Capital Efficiency
With yield curves inverted in many parts of the world, investors no longer need to increase interest-rate risk to bolster yields. Instead, they can achieve the same end with shorter-duration high-yield bonds. For insurance investors that have typically shied away from high yield, we think this landscape—and the regulatory treatment—present a compelling opportunity.
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White papersPotential Opportunities in the US Banking Sector
Despite the failure of a handful of banks in the US and one in Europe, our view is that 2023 will not present a financial crisis near the magnitude of the Global Financial Crisis (GFC) in 2008. The three failed US banks, Silvergate, Silicon Valley and Signature, had unique business models that proved to be meaningful weaknesses. They raised concerns about firms with close financial ties to small banks, particularly speculative technology and related stocks, such as cryptocurrencies, that unwound when they were caught in a bubble.
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White papersA rocky net zero pathway calls for a new approach to portfolios
There’s a growing global consensus on the urgent need to combat climate change. But governments’ uncoordinated reactions to energy price spikes in the past year showed that a successful and orderly transition to a greener economy is far from guaranteed.
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White papersTurning, Not Re-Turning
It makes sense to prepare for the turning point in this cycle—but not by returning to the winners from the last cycle.
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White papersCrunch Time
In this monthly series, we take a quick, comprehensive look at current macroeconomic themes that matter to clients.
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White papersFinding the value in high-carbon sectors
The transition to net-zero greenhouse gas emissions will require radical changes to the global economy. Investors must position their portfolios to support this transition and to benefit from it.
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White papersRedefining Offense and Defense in Equities: The Evolution of Technology and Healthcare
Investors tend to have deeply engrained beliefs about what performs best in various market conditions—often for good reason. But sometimes, common knowledge becomes obsolete. Technology and healthcare are good examples of sectors that can play different equity-allocation roles than you might expect.
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White papersTapping the Evolution in Alternative Return Streams
Institutional investors’ thinking about risk allocation has been dominated for some time by traditional beta sources, mainly long exposure to equities and bonds. The market regime provided little reason for radical change. After all, for two decades, stock and bond returns were negatively correlated, enabling 60/40 equity/bond mixes to deliver both a risk-balanced allocation framework and attractive returns.
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White papersIs There a New Market Context to the Case for Private Assets?
The reallocation from public to private markets has been one of the most significant portfolio rotations of the past decade. After a 2022 that saw a rapid sell-off in public equity and debt markets, some asset owners—such as many US state pension plans—find themselves overweight private assets versus targets.
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White papersA non-bank lender approach to commercial real estate
Our latest private markets newsletter looks at how a non-bank lender can help institutional investors better deliver on their medium- to long-term investment targets and drive attractive relative returns.
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White papersWhat’s in Store for US Insurers in 2023?
Insurers’ risk controls and investment skills faced stiff tests in 2022, as both inflation and interest rates skyrocketed and nearly every asset class endured a sharp selloff. With traditional diversification approaches failing, investors had nowhere to hide.
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White papersWhat’s in Store for European Insurance Investors in 2023?
European insurance investors enter 2023 in healthy shape but face a less-than-stellar macro environment and regulatory change. It will take selectivity and flexibility to tap opportunities.
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White papersCross Asset Investment Strategy - March 2023
European equities are favoured in a fragile earnings outlook
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White papersNotes from the Road: Inflation, Private Assets and a Cautious Consensus
The beginning of the year always offers a chance to catch up with a broad range of clients who are in the mode of thinking about the big picture outlook: pension funds, insurers, consultants and sovereign wealth funds across Australia, Asia, Europe and North America. This note reflects on the key issues that clients have wanted to talk about in the early months of this year. Collectively, these topics give us a picture of what’s on investors’ minds.
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White papersSetting the tone: Private Equity International interview with Markus Benzler
Co-investment will continue to play a crucial role in PE despite the present macro environment, says Markus Benzler, head of multi-managers private equity at UBS Asset Management
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White papersFactoring Next-Gen Inflation Resilience into Multi-Asset Strategies
In a changing world, multi-asset strategies need to evolve, especially when building inflation resilience, because tomorrow’s price pressures will likely look very different from today’s. Not only must inflation defenses be diversified, they should also be innovative.
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White papers*Allocating to private assets in open-ended funds*
Private assets such as private equity and private debt have come to the fore as a viable alternative for investors looking for returns that were not available in public markets. Investing in private assets may involve concessions on the liquidity of the investments, but their illiquidity premium and the breadth of the asset class can be seen as offsetting factors.
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White papersNon-Investment Grade Defaults: Up From the Lows, but Contained
With defaults rising off of all-time lows, but likely remaining well below recession norms, we remain constructive on high yield and non-investment grade credit.
