LDI Deep Dive Series Part 1: The impact of interest rates on investment returns Investors with future liabilities are normally exposed to interest rate risk. A fall in interest rates will increase the value placed on future liabilities. By adopting a
Pensioenakkoord uitgelegd Deel 2: De impliciete lifecycle Deze zomer hebben het kabinet en sociale partners overeenstemming bereikt over een vergaande herziening van het pensioenstelsel. Dit pensioenakkoord heeft grote gevolgen voor hoe pensioen wordt opgebouwd en wordt belegd. In deze serie
House View The global economy is recovering from the economic fallout in the first half of the year. The lockdown measures have caused a sharp deceleration in economic activities in the manufacturing and services sectors in the first half of
Column by Hendrik Tuch, Head of Fixed Income “Interest rates and yield curves have seen quite some volatility in the last few weeks as markets digested the election news and the coronavirus headlines. Ahead of the US elections, many investors
Will 2021 be a Year that takes off for Income Investing? This has been a tough year for income investors. Around the world, record low interest rates and quantitative easing have led to low bond yields, while equity dividends have
Macroeconomic Scenarios and Expected Returns 2021 – 2024 In these uncertain and challenging times, it has never been more important for investors to tune out the background noise and commotion of the daily news flow and assess the longer-term opportunities
July 2020 – Alternative Fixed Income and R.I. series – Webinar 3 The downturn in financial markets as a result of the coronavirus crisis reached a turning point in March. Since then, markets have recovered strongly, with a recovery of
July 2020 – Alternative Fixed Income and R.I. series – Webinar 2 The downturn in financial markets as a result of the coronavirus crisis reached a turning point in March. Since then, markets have recovered strongly, with a recovery of
Where are the opportunities in Asset Backed Securities? …that can meet ESG risk and positive impact objectives July 2020 – Alternative Fixed Income and R.I. series – Webinar 1 The drawdown in the markets provoked by Covid-19 reached its lowest
Global trends relating to environmental, social and governance (ESG) phenomena are expected to affect the economy on a fundamental level in the coming years. From climate change to digitalization, to pandemics and aging populations, the current economic paradigm is being
Executive Summary The coronavirus crisis has understandably caused a great deal of unrest on the financial markets. This article examines the opportunities and threats at times when share prices have fallen sharply in a short period of time, spreads have
Market Commentary The first four months of 2020 have been exceptional for financial markets due to the spread of the coronavirus. Out of all asset classes, commodities were probably hit most severely due to the general collapse in global economic
House View The global economy is in the midst of a major contraction. The pandemic has resulted in varying levels of worldwide shutdowns. This has caused a sharp deceleration of economic activity in the manufacturing and services sectors, offset by
House View April 2020 The global Covid-19 virus outbreak has led to a series of unprecedented measures as governments seek to mitigate its spread. The lockdowns that were decided have caused a major and abrupt global economic slowdown. Many industries
Since the global outbreak of the coronavirus, many governments have imposed stay-at-home orders in an attempt to get control of the spreading of the virus. Most developed economies have closed schools, bars, and restaurants. People are advised to work from
Given the significant turbulence currently gripping markets, we have prepared a summary of our views on the main asset classes.
With the coronavirus having spread throughout Italy, and with the country’s already worrying debt profile, Kames Capital’s Nick Chatters asks how the ratings agencies will view its credit rating which is already hovering perilously close to junk status. Fixed income
What can we learn from past pandemics? The outbreak of the coronavirus in China at the end of 2019 has now turned into a worldwide pandemic, leading to a rapidly rising humanitarian toll. To further suppress the spread of the
Fur is increasingly Faux-Pas: Engaging Luxury Brands for Sustainable Practices Increased concerns around the use of fur have sparked a call from investors for luxury brands to go fur-free Europe leads the charge in humane regulations guaranteeing the freedom and welfare
House View The sky is currently the limit for global equities. After delivering stellar results in 2019 – global equity returns were 28%, the best result since 2009 — US and European markets climbed to even new heights in early
Macroeconomic Scenarios and Expected Returns 2020 – 2023 The global economy has shifted into a lower gear in the past few quarters. Following a period of strong and broad-based economic momentum, soft spots in the economy emerged in the second
House View What a week! Over the course of three days, investors were treated to a triple whammy of encouraging news. First, it was smooth sailing at Christine Lagarde’s first press release as head of the European Central Bank. As
What is it? The Philly Fed Index is the results of a survey of roughly 250 companies with over 100 employees from the Third Federal Reserve District. This is basically a subcomponent of the ISM Manufacturing Index, which is based
Opportunities for foreign investors to participate in China’s onshore markets are exploding as major benchmark providers add the country to their global indices. Many investors are taking a close look at the country’s capital markets for the first time. From
No sooner had Mario Draghi finished his press conference in September that the deep divisions within the ECB governing council were laid bare. In an unprecedented action, the heads of the Austrian, German, French and Dutch central banks publicly criticized
House View October 2019 A prominent topic in the last month (aside from the ECB’s aggressive new monetary stimulus) was the sudden cash crunch in the repo market, i.e., the market for very short-term, typically overnight, lending. On Monday, September 16,
So far in the second half of 2019, commercial real estate (CRE) operating fundamentals remain healthy across most property sectors and geographies. Occupancy rates continue to trend above their long-term averages and growth in net operating income has re-accelerated as
The global economy has shifted into a lower gear in the past few quarters. Following a period of strong and broad-based economic momentum, soft spots in the economy emerged in the second half of 2018 and continued into 2019. The
On September 12 the Governing Council of the ECB announced an extensive package of the monetary stimulus. It includes a deposit rate cut to -0.5%, the asset purchases program restarting November 1st, two-tier system for banks and easing of the
With 2 ½ months left until Mario Draghi steps down as ECB chief, what will be his legacy? On the one hand, he will be forever remembered for those three words “whatever it takes”, which many people credit for having
Mario Draghi normally goes to great lengths to avoid surprising markets. But after the ECB’s March meeting, he shifted course. He adjusted forward guidance by saying key interest rates would remain at their present levels for longer than previously assumed
House View The Fed’s abrupt change in guidance at the end of January proves a point we’ve made regularly in this House View: the Fed was at risk of making a policy mistake, but reversed course on time. After talking
House View The Fed’s abrupt change in guidance at the end of January proves a point we’ve made regularly in this House View: the Fed was at risk of making a policy mistake, but reversed course on time. After talking
House View Feb 2019 With all the noise from Brexit and the US-China trade war, another topic no less important for investors has gone somewhat unnoticed recently: the new Securitization Regulation that went into effect on January 1, 2019. In
House View Is the 90-day truce between the US and China symbolism, or will it deliver real substance? Whether the world’s two biggest economies can solve their sharp differences is far from clear at this point. President Xi Jinping cannot
Long-term value creation Our analysis of the current state of affairs in ESG integration in sovereign portfolios covered three topics: the existing academic and industry research, the data and scores provided by specialised vendors, and the inclusion of ESG in
House View On a tactical horizon, we think there is currently little merit in overweighting equities versus fixed income. At the same time, we maintain a long risk bias with an overweight in Alternatives. Our overall view of equities is
In this article we explore the added value of infrastructure debt in a portfolio context. We show results for pension funds and insurance companies. Infrastructure debt appears to have an attractive risk-return tradeoff in combination with diversification potential in a
Macroeconomic Scenarios and Expected Returns 2019 – 2022 The publication of this report marks the tenth anniversary of the largest bankruptcy fi ling ever in US history. In September 2008, Lehman Brothers – at that time the fourth-largest investment bank
Macroeconomic Scenarios and Expected Returns 2019 – 2022 The publication of this report marks the tenth anniversary of the largest bankruptcy fi ling ever in US history. In September 2008, Lehman Brothers – at that time the fourth-largest investment bank
Macroeconomic Scenarios and Expected Returns 2019 – 2022 The publication of this report marks the tenth anniversary of the largest bankruptcy fi ling ever in US history. In September 2008, Lehman Brothers – at that time the fourth-largest investment bank
Macroeconomic Scenarios and Expected Returns 2019 – 2022 The publication of this report marks the tenth anniversary of the largest bankruptcy fi ling ever in US history. In September 2008, Lehman Brothers – at that time the fourth-largest investment bank
Alternative view Many institutional investors are currently attracted by the potential for high yields on mortgage investments. Exposure to the mortgage market can be achieved in various ways. For example, investors can acquire pools of mortgage loans or invest in
DC investment focus The concept of matching asset allocation to individuals’ risk preferences has been around for many decades now and has developed significantly over time. As the theory developed, the concept of lifecycle investing – varying asset allocation according
House View After the volatility caused by Italy’s new government in May, the relative calm since June has been a welcome change. Even the ECB’s announcement that it would end its quantitative easing this year and not hike until next
In this article we give an overview of the treatment of infrastructure debt under different regulatory frameworks. Our focus is on capital requirements for institutional investors who invest in infrastructure loans and who are subject to FTK, Solvency II or
Alternative View Asset-Backed Securities (ABS) offer an opportunity for investors to enhance the return and diversify the risk of their portfolio. This white paper provides insights into this asset class. What are ABS, how are ABS structured and what are
Alternative View An increasing number of investors are looking at the opportunities that direct mortgage investments around the world can offer to their search for yield. However, each country has its own specific circumstances and regulations that drive the housing
Alternative View There is increasing interest in alternative fixed income as an asset class from investors. Low interest rates and low yields from traditional investment categories have led investors to alternative fixed income as part of their search for yield.
Alternative View In the past few years, many institutional investors have increased their exposure to illiquid assets. This raises the question of how much illiquidity an investor can handle without letting its risk profile change substantially after a financial shock.
