The ongoing digital shift is being driven by an intensified need for enhanced productivity, affordability, and sustainability. The shift to Internet 3.0 (metaverse), electrification (sustainable transport and smart cities) and the need for next generation (low carbon) infrastructure are among
Macro: We expect a late-cycle relief rally in 2020 as industrial production rebounds and recession risks recede. Fixed income: With global growth likely to revive and central banks on course to keep short-term interest rates low, yield curves should steepen.
The third quarter saw the various factors that have been influencing the markets this year – accommodative central policy, US-China trade issues and signs of slowing global growth – trading places as the topic-du-jour. This led to some choppy returns
The largest sector in the Asia investment universe is being disrupted and digitally re-imagined by a wave of new competition challenging legacy business models. This revolution is being driven by regulation and technology. We believe these drivers of change are
Bond yields plunged to historic lows in August, which left 40% of the ICE BoAML Global Government Bond Index total bond market capitalisation trading at negative nominal and even more negative real yields. Austrian century bonds were the star of
What should investors know about Asia credit? It’s a sizeable market: The US$1.2 trillion Asia credit market is a significant and growing part of the emerging market fixed income universe.1 It’s relevant to investors: With a low correlation to other major
A sharp fall in Growth markets in May was bookended by much stronger returns in April and June, leading to an ultimately fruitful, albeit volatile, second quarter of 2019 for most assets. Within Growth assets, US equities were the strongest
Emerging market bonds shrugged off recent trade warrelated concerns to strengthen in June. Local currency bonds, measured by the JP Morgan GBI-EM Global Diversified Index, returned 5.5% during the month, outperforming hard currency bonds, measured by the JPMorgan EMBI index,
Market review The resurgence of trade tensions caused a shift in the backdrop for emerging markets in May, weighing on investors’ appetite for risk. Even so, local bonds ended the month up 0.30%, as measured by the JP Morgan GBI-EM
What can past market regimes tell us about the next chapter? With the US economy cooling down and interest rates approaching a likely peak, a new cycle in emerging markets (EM) is appearing on the horizon. There have been two
Market review Markets rallied significantly over the first quarter of 2019, with a change in rhetoric from the US Federal Reserve and a potential US-China trade resolution buoying returns for most asset classes. Chinese equities led the way over the
A post-dollar world While the dollar enjoys unipolar dominance, as outlined in "Why the US dollar remains centre stage", the next currency transition may not necessarily result in a ‘winner takes all’ outcome. Our paper, "What is driving de-dollarisation?", looks
A brief history of dime Twentieth century history provides us with a valuable roadmap to understand the rise of the dollar to a position of unipolar global dominance. While unipolar dominance may seem like the norm, history tells us that
How a global currency shift may surprise investors The global currency shift: A changing investment landscape presents compelling opportunities . The US dollar has dominated financial markets in the post-war period, but countries across the globe are increasingly taking steps
Market review Markets rallied significantly over the first quarter of 2019, with a change in rhetoric from the US Federal Reserve and a potential US-China trade resolution buoying returns for most asset classes. Chinese equities led the way over the
Pass the buck History provides us with a valuable roadmap to understand the rise of the US dollar to a position of unipolar global dominance, as highlighted in our papers, "Exploring the history of dollar dominance", and "Why the US
Top dollar The US dollar has enjoyed a dominant position for almost 30 years. Our paper, "Exploring the history of dollar dominance", looks at how the dollar cemented its position since the second world war. This paper focuses on the
The current bull market in Growth assets is intact, but vulnerabilities are increasing We have begun to reduce risk, seeking attractive opportunities from the bottom-up Current positioning: Cyclical and financial equities look relatively attractive Corporate bonds require being cautiously selective
Market review Growth assets performed strongly over the quarter following a relatively uneventful summer period. For the third quarter in a row, all the major equity markets generated positive returns, with emerging markets and Asia Pacific equities again leading the
In this quarter’s edition: The evolution of the Mexican economy and its investment opportunities Portfolio positioning highlights: An overview of our positioning in a selection of countries and currencies.
Low correlation doesn’t always mean better risk-reward Imagine a strategy which captured all of the positive returns and none of the losses of the MSCI AC World Index. This, surely, would be the ultimate investment – one generating only gains
Can gold continue to rally in the face of rising rates? George Cheveley and Hanré Rossouw think so and caution against blindly accepting the received wisdom that rising rates mean falling gold. Gold: a wealth life raft? Gold has repeatedly
Market review Resource equities had a mixed start to 2017, with mining equities, in particular gold, continuing to recover, while energy equities stalled as worries persisted about the effectiveness of Opec cuts. However, the macroeconomic backdrop remains very supportive with
