White papers - all assets – Page 95
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White papersMid-Year Outlook 2024 It’s all about confidence
Restrictive monetary policies and fading fiscal expansion are curbing growth and inflation in major economies. Recessions look unlikely but central banks are starting on a new cycle of rate cuts at a time of divergent growth rates, sticky price pressures, constrained fiscal policy and rising geopolitical risks. Despite the uncertain outlook, markets in some regions are priced for the best outcome. We therefore favour asset allocations that can withstand different scenarios.
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White papersAI fever: Has it gotten too hot?
Investor enthusiasm for artificial intelligence has gripped the financial markets and shows no signs of loosening its hold.
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White papersMoving beyond cash
With the highest starting yields in 15 years, many fixed income sectors already produce more income than cash. And these sectors offer the opportunity for price appreciation once the U.S. Federal Reserve starts cutting rates, while the yield on cash will simply decline. We advocate a multisector approach that takes selective risk in credit sectors. Active management remains critical, as credit spreads are likely to widen in the coming months.
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White papersInvestment outlook
At the midpoint of 2024, we are focused on a number of risks posed by fissures and fault lines in the economic terrain — and the need to navigate them successfully. Weakening global growth, still-sticky inflation, diverging monetary policy around the globe and growing political uncertainty all add to the uncertain footing. How might investors find their away around these cracks? In our view, the following portfolio themes point in the right direction.
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White papersMegatrends: Transformative technology
Artificial intelligence (AI), specifically generative AI (GenAI), is poised to affect virtually every sector of the global economy and transform the workforce.
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White papersClimate inclusion: driving the transition for low income consumers
Climate change is poised to disproportionately impact low-income and vulnerable populations. Global temperature increases, increasingly severe storms, and irregular patterns of drought and rainfall are estimated to push up to 130 million people into poverty by 2030. By 2050, as many as 200 million may be forced to migrate. This highlights the universal nature of climate change; it doesn’t respect borders, impacting vulnerable regions and populations regardless of where emissions originate.
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White papersAsia’s New Balance: High-Yield Market Offers More Diversity, Lower Risk
After a turbulent few years caused by the shakeout in China’s property sector, the Asia high-yield bond market has found a new equilibrium based on sound fundamentals, attractive valuations and strong returns. We think it’s time for investors to consider its growth potential and diversification benefits.
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White papersImpact investing: The continued resilience of U.S. affordable housing investments
As the investment environment in real estate continues to navigate challenges, investors are seeking ways to diversify allocations to affordable housing. Impact investment strategies such as affordable housing have long been known for delivering positive social and environmental changes, however, the economic benefits of U.S. affordable housing remain misunderstood by many investors.
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White papersFollowing key elections, where is Europe headed?
Capital Group political economist Talha Khan shares his views on the political shifts taking place across Europe. He also discusses the upcoming US Presidential election and its potential impact on Europe, as well as the tangible concerns of political risk that investors now face.
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White papersReal Estate Debt: Navigating the New Frontier
The Fed’s campaign against inflation, changes in bank regulations and stress in the office sector have collectively created an attractive investment environment for real estate debt investors, in our view. Commercial mortgages are offering yields not seen since the Global Financial Crisis (GFC). While capital market conditions are operating effectively for low-risk mortgages, they remain mostly dislocated for higher-risk mortgages, thereby presenting compelling investment opportunities.
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White papersDispelling the myths around emerging market debt
Things in emerging markets are not always what they seem. In December 2023, Argentina elected as president Javier Milei, a rabble-rousing populist fond of brandishing a chainsaw on the campaign trail. Milei had a radical agenda, including dollarising the economy and abolishing the central bank – just the kind of policies that alarm investors.
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White papersThe potential power of income to deliver long-term returns
After years in the wilderness, equity income is now arguably competing on a much more level playing field than it was in the past decade.
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White papersFiber-to-the-home: Missed connections? i3 article on navigating the investment landscape
Fiber optic cables, originally developed in the 1950s to allow doctors to view the inside of a patient, are now essential infrastructure that everyone needs to access remote employment opportunities, as well as access to education, healthcare, entertainment and even socialization.
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White papersWhat You Didn’t Know About European Offices
Are European offices broken? We don’t think so. They’re just different.
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White papersEquities at all-time highs
”We expect equity markets to take a breather after the recent all time highs. We look for opportunities beyond the mega caps and in emerging markets.”
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White papersEMEA Investment grade outlook, H2 2024
Inflation is finally coming down, central banks are poised to cut rates, and credit spreads have withstood volatility in government bonds. So where do we see things going from here?
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White papersWhy we’ve said ‘auf Wiedersehen’ to Deutsche Bank
A great German thinker once said: “We rarely find people who achieve great things without first going astray”
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White papersMid-year investment update – Navigating political turmoil
The US economy is still on a soft landing path, even if the speed and timing of the touchdown vary after each economic release. The most recent US inflation data show price rises slowing more quickly than in the first part of the year. The eurozone, by contrast, continues to see persistently higher inflation
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White papersUK DC Pensions: Overcoming the Hurdles to Investing in Private Markets
Historically, UK DC pension plans have struggled to invest in private markets. We’ve found that where there’s a will, there’s a way.In today’s challenging environment for DC pension savers, allocating to private markets can help improve return potential. Implementing an allocation to private markets in DC pensions isn’t straightforward, but it can be done. The secret? A combination of experience, ingenuity and an appropriate choice of investment vehicle.
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White papersUK election delivers no-drama outcome
Britain’s Labour Party returned to power for the first time in 14 years after winning a large majority in parliamentary elections that were held on July 4. Labour, led by Keir Starmer, won more than 410 of the 650 seats in the House of Commons, while the Conservative Party suffered its worst-ever performance.
