White papers - all assets – Page 272
-
White papersFixed Income: Back To Core - Charts And Views
The ongoing slowdown in global trade will weaken global GDP growth further in 2020 – especially in advanced economies skewed towards the manufacturing sector – but a full-blown recession is unlikely, in our view. This situation will encourage policymakers to finally add fiscal stimulus to the policy mix, possibly extending the economic and credit cycles. Monetary policy is unlikely to become much more accommodative and market expectations will have to adjust, likely driving bond volatility higher with a possible bottoming out of core bond yields.
-
-
White papersRaising the Bar – Impact Investing in a Changing World
Today we are witnessing an unprecedented wave of capital that seeks to make a difference for people and the planet. Investors, for their part, increasingly strive to generate both financial and social returns. Not that long ago, a $100 contribution to a microfinance fund was viewed as a philanthropic donation.
-
White papersGlobal Emerging Markets: ESG Materiality, Q3 2019
Welcome to the Hermes Global Emerging Markets’ ESG Materiality commentary – a quarterly publication that demonstrates our engagement activity with portfolio companies and showcases holdings that are creating positive impact aligned to the Sustainable Development Goals. In addition, we explore an environmental, social and governance theme and its implications for the asset class.
-
White papersCentral Banks on Hold, USMCA in the Fold
FOMC and ECB meetings both signal a holds on rate changes and the USMCA likely to pass at the beginning of 2020.
-
White papersThe Changing Investment Climate Around Climate Change
Investors need to pay attention regardless of the uncertainties (and the politics). The changing climate is already changing a lengthening list of prices, which is changing the climate for investments.
-
White papers2020 appears tilted to the downside
The themes we discuss at our Annual Investment Symposium guide our research process. Over a longer-term horizon, we believe global stocks have greater performance potential than global bonds, supported by continued growth and moderate inflation. With government bond term-premia remaining below historical averages, we see a lower performance potential from government bonds.
-
White papersAI applications in financial services
In this paper, we examine the pros and cons of applying artificial intelligence (AI) in three areas of financial services: asset management, banking and insurance.
-
White papersGlobal Investment Views - December 2019
In recent weeks equities rallied along with bond yields as investors reacted to the prospect of a US-China ‘phase one deal’ and fading global recession fears. The value of negative yielding bonds continued to fall, from US$17 trillion over the summer to the current US$12.5 trillion. While equities were previously overshadowed by the excessive gloominess on the global economy and earnings, markets rebounded after corporate results in the US and Europe met or exceeded low expectations, and as economic data did not show any material worsening. The mantra now seems to be ‘not so bad is the new good’.
-
White papersMitigating Inflation Risk at Lower Opportunity Cost
Inflation-mitigating allocations can drag on returns when inflation is subdued: diversifying and tactical allocation can help.
-
White papersEquity Portfolio Construction: Filling the Gap Between Alpha and Beta
Separating equity alpha and beta is a good first step—but could investors be doing more in the space left between them?
-
White papersGlobal economies in 2020 and beyond
Over the past decade, major economies have more than recouped the GDP lost during the financial crisis. Yet governments, companies and households have spent more time repairing their balance sheets than spending, while central banks have reverted to the tools that failed them in the past.
-
White papersIn search of a free lunch
Correlations between groups of assets and within individual asset classes have changed in unexpected ways thanks to a decade of easy monetary policy. Our portfolio managers tell us what impact this has had on the way they manage money.
-
White papersSeeking protection in mispriced miners
The copper price – a gauge for the wellbeing of the global economy – has defied supply disruptions and remained broadly flat for the past year. Despite this, the credit spreads of several large mining firms are trading at their lowest levels in 12 months, indicating subdued risk. We think that credit markets have failed to account for several risks that miners face – from a weak macroeconomic outlook to environmental, social and governance issues – and we have sought defensive positions within the sector.
-
White papersContinued Support For Asset Returns
Our capital market expectations (CME) are designed to provide annualized return expectation over a longer-term horizon, typically viewed as being five to 10 years.
-
White papersScreen The Euro Fixed Income Market In The Era Of Three ‘Lows’
As 2020 approaches, the uncertainty in the market has receded but there are still risks ahead involving macroeconomic, political and technical factors. Under such a scenario and with central banks being accommodative, we do not envisage a major increase in European core bond yields from their current levels given the limited growth potential and the scarcity of tools left in the ECB’s toolkit to stimulate the economy. Should the economic situation deteriorate, there could be room for yields to fall, but probably not to the lows reached in late August/early September.
-
White papersGrowth Near an Inflation Point, Trade Remains a Wild Card
Leading indicators appear to be bottoming out and pointing to economic healing but geopolitical tensions revolving around trade and international security continue to cloud the outlook.
-
White papers2020: Risks, Opportunities & Predictions (Part 1/2)
In Part 1 of our 2-part series, Barings’ investment professionals touch on topics from politics to trade wars to economic growth—and offer their perspectives on why EM currencies, international equities and EM local debt might outperform in 2020.
-
White papers2020: An Inflection Point for EM Currencies?
With the financial crisis more than a decade behind us, the global financial system seems poised to begin re-leveraging. This process, which would likely take years to play out, would provide a source of funding for EM currencies, and represent a significant tailwind.
-
White papersTen Crises We Avoided This Year
It turns out that we are not entirely hostage to immutable economic cycles or raging political intrigue. Sometimes people make good decisions in spite of our expectations. Sometimes, to be honest, we are just plain lucky and the dice land well.
