Navigating Extended Periods of Market Volatility
In an environment marked by rapid market swings, investors looking to consistently outperform will have to increase their emphasis on downside protection while maintaining their upside participation.
Private Equity Outlook
Observations driving Verus outlook PE has pulled back to a significant degree this year. Through 1H2020, deal volume and value stood at roughly a quarter of 2019 tallies, representing a strong deceleration after back-to-back record-breaking years. The median PE deal
Offence wins Games but Defense wins Championships
Building resilient portfolios for uncertain times Balancing protection and upside potential is a difficult exercise, but we hope investors will find some ideas and some inspiration on how to tackle it in this paper, whether it is through a dynamic
You’re Fired! When Do You Sack the Fund Manager?
Summary of the ‘Drawdowns’ academic paper Sacking a fund manager is costly and complex. So, what type and size of drawdown should cause you to risk changing a fund manager? When evaluating managers or strategies, investors pay close attention to
Patience with active performance cyclicality: It’s harder than you think
"Patience in investing is the capacity to endure periods of underperformance in hopes of achieving an investment objective. For many investors, outperforming the broad market through traditional active management or factor-based investing is a key goal— and one that requires
Building solid foundations
Fidelity International China Stewardship Report 2020 To many outsiders, Chinese equity investing might conjure up images of a huge, freewheeling market where millions of retail investors revel in speculation and sustainability is an alien concept. But developments on the ground
Emerging market debt in the new decade: an active approach
Investment Insights Emerging market debt (EMD) has already broadened and deepened significantly in the last few decades and as the asset class has developed, it has become more appealing to a broader investor base. Issuance has increased, thereby improving liquidity.
Central Banks Are Not Out of Ammunition Yet
T. Rowe Price Insights from our Global Fixed Income Team How the prospect of further monetary easing could impact bond markets. Central banks are not done yet. With economic recoveries under threat, several developed market central banks, including the European
Is the dollar’s stumble a sign of things to come?
Investment Insights Is the U.S. dollar entering a new multiyear bear cycle, or is it just experiencing an episode of weakness in an already decade-long bull run? It’s a question at the top of investors’ minds given the dollar’s steady
2020 Q4 Capital Market Assumptions
To build the income component of our long-term equity forecasts, we calculate each country’s expected income contribution, based on current and anticipated levels of dividend yield, as well as the expected returns attributable to buyback activity (positive) or net positive
2021 Outlook: Looking to a post-COVID world
Perspectives Writing a year-ahead outlook is always challenging, but writing it in the middle of a global pandemic takes that definition to the extreme. Nonetheless, as we look to 2021, we find ourselves optimistic again, despite the tough year and
BNP Paribas AM Outlook 2021
De redactie van OpinioPro maakte het onderstaande verslag van de BNP Paribas AM Outlook 2021. The Great Instability. Dit jaar (2020) maken we niet één maar drie crises tegelijkertijd door. Een gezondheids-, economische- en klimaatcrisis. De instabiliteit die dit tot
Sustainable Investing: Past, Present and Future
While historically most asset managers have separated their stewardship capabilities from their investment processes, we believe that this will no longer suffice. Engagements and proxy voting decisions should be made in consultation with investment decision makers as it is the
5 years old, but wiser than its years
Capital Group New Perspective Fund (LUX) It’s been five years since Capital Group launched its New Perspective strategy in a Luxembourgdomiciled vehicle, giving investors in Europe and Asia access to a core global equity strategy with a successful 47-year track
Capital Group Global High Income Opportunities (LUX) (GHIO) Q&A with Rob Neithart
Q&A with Rob Neithart, Fixed Income Portfolio Manager Based in Los Angeles We have experienced an extraordinary year so far. How did GHIO navigate the volatility and what have you done in the portfolio since then? Going into the period of
Global gold-backed ETFs: A popular gateway to the gold market
Global gold ETFs: A popular gateway to the gold market Gold-backed exchange-traded funds and similar products (gold ETFs)1 have flourished since their introduction in 2003, attracting both institutional and retail investors across the globe.2 Recently, gold has become globally accepted
Covid-19 vaccines, lockdowns and equities
Multi-asset | November 2020 Coronavirus cases are rising at an alarming rate in the US and Europe, so why are equities reaching new highs? With the Covid-19 case count rising rapidly across the United States and Europe, the immediate economic
White Paper: European Small Caps – Rising Stars
White Paper: European Small Caps – Rising Stars The big story in 2020 has been the coronavirus pandemic and its impact on the global economy, government finances and corporate earnings, leading to heightened levels of equity market volatility. Smaller companies
Markets Prepare for the Post-Covid Period
Market Flash Markets continued to focus on waning epidemic and political risk. Astra Zeneca unveiled a Covid vaccine that looks promising and simple to use. Governments are gearing up to start vaccination campaigns in the next few weeks. In the
Fiscal Forward Guidance
We explore this week the possible “exit strategy” from the ongoing extraordinary fiscal and monetary stimulus. Drawing on Olivier Blanchard’ recent research, we argue that the current EU fiscal surveillance framework may … Key points The current EU fiscal surveillance
Investment Outlook 2021 – Legacy of the Lockdowns
Investment Outlook 2021 – Legacy of the Lockdowns TAKEAWAYS The global economy faced a crisis of unprecedented magnitude following the coronavirus pandemic lockdowns. A sharp global contraction in early 2020, and possible renewed dip in Europe in the fourth
Emerging market exchange rates: cheap or value traps?
Investment Insights Over the past decade, emerging market (EM) currencies have weakened significantly and local currency bond investors have seen little exchange rate returns. In fact, EM exchange rates (FX) have been a major source of volatility … Key Takeaways
A Brave New World
Investment Outlook 2021 According to our scenario, all countries should see renewed growth in 2021. Economies have seen a gradual upturn since summer 2020, although the resurgence of Covid-19 cases and new local restrictions are hampering the recovery at the
Biden Win Might Bring Mixed Outlook for Investors
T. Rowe Price Insights on the U.S. Election Democrat Joe Biden’s policy proposals as the next U.S. president (pending the outcome of potential legal challenges) could have mixed implications for investors if implemented, according to T. Rowe Price investment professionals. On
Dollar Depreciation Helps CTAs
The Weekly Brief Since the U.S. presidential election on November 3 th, the USD has started a descent that may have legs under the new administration. The easing of trade tensions and an accommodative policy mix could put additional pressure
#Japan – Research Highlights
#Japan In September, Japan elected a new leader of the country. Yoshihide Suga replaced Shinzo Abe, the longest prime minister the country ever had. With the TOPIX gaining 7.84% from the 30th of October till the 13th of November the
Finding Opportunities After the Rebound
T. Rowe Price Insights on Global Markets Our portfolio managers see selective potential in a range of asset classes. Even for those of us who saw reasons for hope this past spring, the market’s resilience in the face of the
Investment Manager Monitoring Guide
The PRI has identified The PRI Leaders’ Group 2019, which highlights asset owner leaders that have developed rigorous follow-up procedures to reduce reputational and management risk, and who have detailed policies for frequently monitoring managers’ performance through on-site interviews, calls
The Next Normal -The recovery will be digital
Welcome to the “next normal”—the new reality emerging from the ongoing COVID-19 pandemic. How will life, public health, and business continue to change? We’ve chronicled our response in a wide-ranging series of publications—more than 500 articles and counting since the
The Big Green Short
"Since 2000, portfolios made up of restricted stocks, with the exception of coal, have delivered better performance than the benchmark, suggesting that applying the restriction has probably hurt investment performance. However, it’s worth noting that the return gap has been
Investment Manager Selection Guide
The incorporation of ESG factors within the investment process has evolved from a nice-to-have to a necessity. Client demand has grown strongly, with 68% of the PRI’s asset owner signatory base addressing ESG considerations in their requests for proposals (RFPs).1
Five Reasons Why Investors Should Now Consider Small‑Caps
"Investing in small‑caps today may give investors with a long-term investment horizon the opportunity to join the journey of some of tomorrow’s most successful businesses at an early stage." — Yoram Lustig Head of EMEA Multi‑Asset Solutions
The Right ETF Starts with the Right Index
Deeper knowledge about how indexes work can drive better portfolio outcomes for wealth advisors Because an index is a hypothetical basket of securities, it cannot be invested in directly. However, indexes are often licensed by fund managers to be used
There’s No Place Like Housing
Global Asset Allocation: The View from EMEA Blue Ripple? A Biden presidency, with Republicans maintaining control of the Senate, is a possible outcome of the US elections. Most polls heading into the election were predicting the possibility of a ‘Blue
Danger in the Water
Engaging with pharmaceutical companies to address the role they play in India’s water pollution crisis The growth in superbugs is a major public health crisis facing our world today. And in India, where nearly 60,0001 new-borns die every year from
Sovereign Analysis: Natural Capital vs the Nature of Capital
“A community already exists within finance which is committed to adding value for investors, while collectively changing the world. Both we and the next generation deserve nothing less.” – Vincent Hamelink, Chief Investment Officer We believe that the inflection point
Why REITs?
"When building a portfolio of different assets, an asset’s beta is critical in understanding the impact on portfolio volatility. While standard deviation will explain the volatility of an asset’s return compared to its expected mean return, beta will explain how
Responsible investment quarterly
Q3 Hydrogen:significant opportunity or hot air? Natalia Luna, Senior Thematic Investment Analyst, Responsible Investment: “Since the Paris Agreement in 2015 governments have turned their attention to climate change and committed themselves to achieving emissions reduction targets that will lead to
Divided government likely would produce moderate policies.
“While capital markets appeared to have reacted positively to these results, the postelection transition creates a potential for market volatility.”
Highlights of last week: Central banks, Decarbonization and Inflation
#47 Tomorrow our event calendar is filled with five webinars! If you have spare time tomorrow, don’t miss out on an interesting session. Furthermore, next week December starts and this month has lots of interesting webinars as well. For example,
2021 Investment Outlook
"Marked by the most severe recession in modern history, 2020 was an unprecedented year. With the global pandemic continuing, we enter 2021 with a mildly positive outlook for the upcoming recovery, but with the assumption that the path to pre-crisis
Covid-19, climate change, and the need for a new marshall plan
"Now we face the shorter-term economic threat from Covid-19 and the long-term economic threat from climate change. We have a clear incentive, I would argue an imperative, to produce a very large and sustained public works program."
Vaccines shape 2021 outlook
"We still like high yield for income. On a tactical horizon, we strongly prefer high yield for its income and more room for spread tightening. We are neutral on IG and underweight emerging market debt."
Tackling the Trilemma
Investment Outlook 2021 2020 will likely go down as one of the most remarkable years in history: from an economic perspective, as Covid-19 brought the deepest recession since the 1930s, and from a public health and social viewpoint as well.
Thanksgiving Eye on the Market
The Armageddonists were not rescued from underperformance purgatory by COVID, and markets are at alltime highs again with prospects for further gains in 2021. However, I can think of something that could rescue them, at least temporarily: the risk of
BNP Paribas – High Hopes for a Cyclical Recovery (Video)
High Hopes for a Cyclical Recovery (Video) Asset Allocation Monthly In this Asset Allocation monthly video, we discuss the implications of the US elections and the news on potentially reliable Covid vaccines on our market views and our asset allocation
Light at the end of the tunnel
The Big Picture – 2021 Outlook 2020 has seen defensive assets outperform cyclicals. We expect the opposite in 2021. Despite short term Covid-related risks, recent vaccine news provides valuable light at the end of the tunnel. Unfortunately, some cyclical assets have
UBP – Flash Update: UBAM – Hybrid Bond | opportunity in European Banks AT1 bonds (Podcast)
UBAM – Hybrid Bond Opportunity in European Banks AT1 bonds Key takeaways: Fundamentally, European banks are solid with strong capital ratios and should exit the Covid-19 crisis unscathed The macro picture continues to improve, assisted by significant central bank support
Pension Funds in Figures – 2020
"The size of pension funds compared to GDP varied widely at the end of 2019, ranging from 0.1% in Pakistan to 191.4% in the Netherlands. Assets in pension funds exceeded the size of the domestic economy in five countries: Australia
Pension Markets in Focus 2020
"Assets in retirement savings plans reached new heights, exceeding USD 50 trillion before the COVID-19 outbreak"
Featured
Can green and ethical investing help us build back better in a post-pandemic world? Find out in this @raconteur article written by @SustMeme.
It carries insights from a range of market perspectives and leading contributors with expertise in both sustainability and investment.
