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Why ESG Factors Matter in Asia Credit Investing

Why ESG Factors Matter in Asia Credit Investing

🕔16:40, 12.Apr 2021

Why ESG Factors Matter in Asia Credit Investing Integrating ESG factors can help manage downside risk and identify high‑quality businesses driving positive change. Already mainstream in Europe, responsible investing is fast becoming a key consideration in Asia as well. The integration

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Value Investing: Capitulation or Opportunity?

Value Investing: Capitulation or Opportunity?

🕔16:20, 12.Apr 2021

The MSCI World Value index is a well-known proxy for the performance of value stocks. The index relies on three value factors (earnings-forward-to-price and dividend yields) and five growth factors to allocate to stocks. The stocks in the …

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A distinctive approach to investing

A distinctive approach to investing

🕔12:02, 12.Apr 2021

A distinctive approach to investing  Capital Group has been investing around the globe for more than 60 years. Its unique multiple-portfolio manager approach, The Capital SystemSM, sets it apart from many other global asset managers. Rob Lovelace – who is

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Markets rally on strong data

Markets rally on strong data

🕔11:38, 12.Apr 2021

Strong economic data over the last week in the US, Europe and Asia appears to be confirming the perception among investors that a cyclical recovery is well established. As a result, valuations of risk assets have risen on the view that the pandemic will be overcome this year.

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Barometer: Laat de rally doorgaan

Barometer: Laat de rally doorgaan

🕔11:15, 12.Apr 2021

Barometer: Laat de rally doorgaan  April 2021 Ruime monetaire en fiscale stimulansen zouden de economie en de bedrijfswinsten een sterke duw in de rug moeten geven. Daarom blijven we de voorkeur geven aan cyclische aandelen. De wereldeconomie kent een sterke

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China: Transitioning To A Brave New World

China: Transitioning To A Brave New World

🕔16:04, 9.Apr 2021

The return of volatility to China markets. China’s equity markets have been roiled by a combination of concerns in recent weeks, culminating in the fallout from the Archegos family office liquidations in late March. However, this volatility has retraced …

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Diversifying Credit Portfolios With Multi-Factor Strategies

Diversifying Credit Portfolios With Multi-Factor Strategies

🕔15:15, 9.Apr 2021

The past decade has seen the use of multi-factor investing in corporate bonds increase significantly. Easier access to corporate bond data along and a growing body of research has enabled managers to develop robust factor-based …

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Is factor investing still relevant today?

Is factor investing still relevant today?

🕔10:03, 9.Apr 2021

In 50 years of factor investing, there have been a series of love/hate phases with regard to the use of factors in selecting stocks for portfolios. At present, 2019-2020 seems likely to go down in history as a period of aversion, much like 2009-2011 and 1998-2000. These are the periods when most of the conventional factor combinations used by portfolio managers did not perform.

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EM: deze keer is het anders

EM: deze keer is het anders

🕔15:47, 8.Apr 2021

Als we dieper ingaan op vastrentende waarden uit opkomende markten ontdekken we variatie in spreiding, zowel over landen als over kapitaalstructuur.

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Diversify your allocation to corporate bonds with multi-factor investing

Diversify your allocation to corporate bonds with multi-factor investing

🕔13:02, 8.Apr 2021

Over the past decade, multi-factor investing in corporate bonds has seen significant development. Easier access to better datasets along with an extensive body of research has enabled managers to move the dial significantly. Investors can now access robust factor-based strategies offering diversification benefits in corporate debt allocations.

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Slimme datacenters: een revolutie in groen vastgoed

Slimme datacenters: een revolutie in groen vastgoed

🕔12:05, 7.Apr 2021

De uitbreiding van de digitale economie doet de vraag naar datacenters toenemen, maar baart ook zorgen over hun energieverbruik. De oplossing voor dit probleem is een aantrekkelijke belegging in groen vastgoed. 

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Asian equities inspire confidence, even after volatile quarter

Asian equities inspire confidence, even after volatile quarter

🕔10:53, 7.Apr 2021

Asian equities peaked twice in the first quarter amid optimism over the recovery in China, the prospect of improved relations between the new US administration and China, and the arrival of COVID-19 vaccines. Zhikai Chen, head of Asian equities, argues the outlook for much of the region remains positive, even after a valuation-related stumble.

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The post-COVID-19 world, with Capital Group’s Night Watch

The post-COVID-19 world, with Capital Group’s Night Watch

🕔12:05, 6.Apr 2021

Rembrandt’s masterpiece “The Night Watch” is the inspiration for a multidisciplinary research process at Capital Group. Everyone in the painting is looking in a different direction and it is this gathering of multiple perspectives that summarises our approach to gaining a deeper understanding of market disruptions, assessing the risks and evaluating the opportunities that arise during times of extreme crisis.

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Reflation trade on hold

Reflation trade on hold

🕔10:52, 6.Apr 2021

Valuations of risk assets have marked a pause in the face of a number of headwinds. In our view, valuations remain underpinned by ample central bank liquidity and the prospect, in the US, of further fiscal stimulus.

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Podcast: Strong fundamentals underpin Asian equities

Podcast: Strong fundamentals underpin Asian equities

🕔13:43, 2.Apr 2021

Asian equities rode high early in the year amid optimism over the recovery in China, the new US administration and improved relations with China, and the advent of vaccines. The outlook for investor flows into much of the region remains positive, even after a recent valuation-related setback. Zhikai Chen, head of Asian equities, discusses the prospects for the asset class this year.

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Why the Eurozone Will Not Mirror China’s Post‑COVID Recovery

Why the Eurozone Will Not Mirror China’s Post‑COVID Recovery

🕔09:56, 2.Apr 2021

China’s success in quickly getting its economy back on track in the wake of the coronavirus will be studied closely by other regions hoping to achieve the same. The eurozone in particular, which faces the possibility of extended lockdowns as the European Union (EU) struggles with its …

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How vaccines are paving the way for the ‘grand reopening’

How vaccines are paving the way for the ‘grand reopening’

🕔16:55, 1.Apr 2021

6.45pm, 15 March 2021 – this is my appointment for a first dose of the Covid vaccine. I don’t want to give away my age, but by then approaching 25 million people will have received their first vaccine dose in the UK – close to half the adult population. I don’t know which vaccine I will get, but either way we are on our way. The grand reopening is coming.

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Fasten Your Seatbelt for More Interest Rate Volatility

Fasten Your Seatbelt for More Interest Rate Volatility

🕔12:13, 1.Apr 2021

Rising global bond yields and interest rate volatility have been dominant themes in fixed income markets so far this year. In our latest investment team meetings, we discussed how likely these trends are to continue—and the potential implications for bond markets and central bank policies if they do.

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The blue economy in numbers

The blue economy in numbers

🕔10:39, 1.Apr 2021

Growth, employment, consumption, renewable energy…These are all indicators that reflect the rapid rise of the ‘blue economy’ and its growing contribution to business and industry, better living standards and the development of a more responsible global economy.

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Pictet AM: EMD, aantrekkelijk en uitdagend

Pictet AM: EMD, aantrekkelijk en uitdagend

🕔08:00, 1.Apr 2021

In een reeks artikelen de afgelopen maanden schetst Pictet Asset Management een beeld over Emerging Market Debt waaruit blijkt hoe aantrekkelijk en uitdagend deze beleggingscategorie kan zijn. Aantrekkelijk vanwege het te verwachten rendement, uitdagend omdat naast de reguliere selectie van titels langetermijnfactoren als klimaatverandering een centrale rol gaan spelen in het beleggingsbeleid.

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Value stocks – Different definitions can mean significantly different outcomes

Value stocks – Different definitions can mean significantly different outcomes

🕔11:37, 31.Mar 2021

There is no universal approach to identifying value stocks or measuring their performance. Using various measures of a company’s fundamental value and picking value stocks by comparing them to sector peers would have boosted investment performance over the last decade. However, this style would still have lagged as value stocks kept getting cheaper and expensive stocks dearer.

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Seeking Alpha in Emerging Markets Corporate Debt

Seeking Alpha in Emerging Markets Corporate Debt

🕔10:37, 31.Mar 2021

Corporate debt is the fastest‑growing area of hard currency emerging markets (EM) debt, with almost USD 2.5 trillion outstanding and new issuance averaging 15% of debt outstanding per year since 2011. The asset class generated strong risk‑adjusted returns over the five years ended December 31, 2020, due to the …

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Podcast: Good Momentum for Value and ESG investing

Podcast: Good Momentum for Value and ESG investing

🕔09:19, 31.Mar 2021

A compelling investment opportunity: Japanese equities offer attractively priced and more visible earnings growth for 2021 and beyond. Nevertheless, Japanese equities are currently trading at a discount to global equities. And Japan equity markets have outpaced major developed market equities both in 2020 and year-to-date in 2021 as the world seeks to transition to a post-pandemic recovery.

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A pause in the rise

A pause in the rise

🕔12:54, 30.Mar 2021

The sell-off in US Treasury bonds reversed over the last week with the 10-year bond yield dropping from its intraday high of 1.75% on 18 March. The decline was driven principally by falling real yields as inflation expectations were mostly stable. There was also a reversal in the recent outperformance of value stocks relative to growth stocks.

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BNP Paribas AM: Ongekende mogelijkheden in “Environmental Solution” bedrijven na recente sell off

BNP Paribas AM: Ongekende mogelijkheden in “Environmental Solution” bedrijven na recente sell off

🕔10:20, 30.Mar 2021

Vorig jaar was beurstechnisch een meer dan uitstekend jaar voor bedrijven in de “Environmental Solutions” sector. Als proxy voor deze bedrijven kan de iShares Global Clean Energy ETF (rhs) worden genomen die in 2020 de Nasdaq met …

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China’s Five-Year Plan: A transformative shift towards self-sufficiency

China’s Five-Year Plan: A transformative shift towards self-sufficiency

🕔08:27, 30.Mar 2021

The National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPCC) closed in Beijing on March 11th. This is the most important event on China’s political calendar, as the NPC approves the main policy objectives that will set the tone for the remainder of the year. This year was especially important, as it also …

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Capturing Asia’s secular growth opportunities: Q&A with Christopher Thomsen

Capturing Asia’s secular growth opportunities: Q&A with Christopher Thomsen

🕔16:32, 29.Mar 2021

Asia’s emergence as the world’s key engine of growth has been one of the most compelling investment stories in recent times. The newly launched Capital Group Asian Horizon Fund (LUX) (CGAH)1 is designed to tap into this attractive opportunity set and, in this Q&A, portfolio manager Christopher Thomsen explains why …

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Podcast: The technologies contributing to net zero

🕔13:52, 29.Mar 2021

Eliminating carbon dioxide emissions over the coming decades will require multi-billion dollar investments, as well as a wide range of efforts to reduce energy consumption, increase efficiency, electrify and decarbonise processes, and nurture alternative fuels to economic viability.

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What technologies do we need to get to net zero?

What technologies do we need to get to net zero?

🕔13:52, 29.Mar 2021

Meeting Paris Agreement climate change targets means tackling the harder-to-decarbonise areas of the economy with technologies that don’t yet exist at scale. There is no silver bullet to tackling climate change. It’s likely the answer to getting to net-zero emissions by mid-century is to deploy everything we have, but faster. 2050 is the target date for net zero that the Intergovernmental Panel on Climate Change (IPCC) says[1] is what’s needed …

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Together in electric dreams.

Together in electric dreams.

🕔10:05, 29.Mar 2021

Core government bond markets remain in a nervous state. The good news about the vaccination roll out (UK and US), the passage of the US fiscal package, the concurrent rise in growth expectations and normalisation of the inflation outlook have conspired to take yields close to where …

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Cooling US ‑ Europe Trade Tensions Could Lead to Bigger Deal

Cooling US ‑ Europe Trade Tensions Could Lead to Bigger Deal

🕔14:03, 26.Mar 2021

The U.S. and European Union (EU) announced a four‑month suspension of all tariffs related to the long‑running dispute about unfair government support for leading aerospace companies Airbus and Boeing, signaling President Joe Biden’s desire to realign trade relations. This pause came on the heels of a similar agreement between the U.S. and the UK.

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Time for the next level: Upgrading our green bonds methodology

Time for the next level: Upgrading our green bonds methodology

🕔12:13, 26.Mar 2021

Green bonds first emerged as issuances by supranational development banks. Since then, the market has grown considerably, with greater issuer diversification across countries and sectors (see Exhibit 1). Yet, not all green bonds are created equally, and we believe in the need to discern among green bonds in our investments.

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Low-volatility investing, here for the long run

Low-volatility investing, here for the long run

🕔14:11, 25.Mar 2021

A decade ago, after undertaking comprehensive proprietary research into the characteristics of low-risk stocks, we launched our global low-volatility equity strategy. To mark the tenth anniversary, our quantitative research group reviewed the research to determine if our initial analysis still holds true. Were the least volatile stocks from each sector more …

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T. Rowe Price Strategy Focus on Global Impact Equity

T. Rowe Price Strategy Focus on Global Impact Equity

🕔11:56, 25.Mar 2021

The strategy maintains a focus on companies that we believe offer a positive impact today and an underappreciated impact in the future, as well as sustainability and robustness in their future earnings and cash flow growth. And our fundamental research platform and dedicated Responsible Investing (RI) team—which is focused on environmental, social, and governance (ESG) issues— provide  …

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Relationships are not easy: US equities versus Treasuries

Relationships are not easy: US equities versus Treasuries

🕔16:54, 24.Mar 2021

As the economy recovers and cyclical stocks begin to outperform, how should we think about the connection between equities and US Treasury yields? A recent rapid increase in US Treasury yields has unsettled equity markets, and to understand this

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A look into the future: The strengthening case for investing in Asia

A look into the future: The strengthening case for investing in Asia

🕔15:51, 24.Mar 2021

It has been more than a year since COVID-19 was declared a global pandemic. The start-stop lockdowns that followed the first wave of the coronavirus outbreak made it particularly tough for many businesses and individuals to adapt.

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Impact Investing: Why It Matters Now More Than Ever

Impact Investing: Why It Matters Now More Than Ever

🕔14:36, 24.Mar 2021

The magnitude of change and disruption experienced around the globe in 2020 was remarkable on many levels. The coronavirus pandemic enveloped the world, prompting widespread upheaval to established patterns of conducting business, communication, travel, and the daily lives of people and communities. Amid the evolving …

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Diversification through factor-based investing in corporate bonds

Diversification through factor-based investing in corporate bonds

🕔13:49, 24.Mar 2021

Allocations to factor-based strategies in corporate bonds have grown, with an expanding body of research demonstrating its advantages. In contrast with traditional bond investing, which often focuses on actively managing a portfolio’s sensitivity to changes in interest rates (duration), credit risk and currency exposure, factor investing involves picking …

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Podcast: Factor-based investing: it works for corporate bonds too!

🕔13:49, 24.Mar 2021

Applying factors to corporate bond investing can help build a more resilient portfolio, particularly when markets face rising interest rates and heightened volatility. Olivier Laplenie and Charles Cresteil explain.

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Why Credit Investors Need to Become Active Duration Managers

Why Credit Investors Need to Become Active Duration Managers

🕔15:34, 23.Mar 2021

Why Credit Investors Need to Become Active Duration Managers The importance of duration for credit performance and five ways to improve it.  Credit investors typically pay little attention to duration, seeing themselves primarily as bottom‑up investors who specialize in sector and

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A lot of questions, not many answers

A lot of questions, not many answers

🕔10:45, 23.Mar 2021

Bad news on the health front; volatile economic data; hopes that the US national 4th of July holiday can be celebrated with a BBQ; and further lockdowns, in place or imminent, in Europe. This odd concoction on the anniversary of the Great Lockdown did not keep …

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Pleasant Recession, Unpleasant Recovery

Pleasant Recession, Unpleasant Recovery

🕔17:37, 22.Mar 2021

Last year was nothing if not remarkable. The coronavirus pandemic led to an implosion of economic activity before monetary and fiscal stimulus provided the foundation for a recovery unlike anything we have ever seen. From an economist’s perspective, one insight …

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Blue economy – Saving whales means saving the planet

Blue economy – Saving whales means saving the planet

🕔10:58, 22.Mar 2021

Are whales man’s greatest ally as rising temperatures pose unprecedented threats to the planet? Trees are often championed in the fight against global warming: Photosynthesis captures significant quantities of carbon dioxide (CO2). However, the carbon footprint …

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Back to work

Back to work

🕔14:48, 19.Mar 2021

As mentioned previously, this trend was borne out of rising inflation expectations and augmented by a nudge higher in real rates. If this latter rate is the key discount rate for risk markets such as equities, it helps explains why this market has been …

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Brightening growth prospects for 2021 underscore regional disparities

Brightening growth prospects for 2021 underscore regional disparities

🕔08:16, 19.Mar 2021

According to our forecasts, Asia1 is projected to lead the global economic recovery in 2021. On a GDP-weighted basis, the region is expected to expand by 6.6% this year, up from -1.0% in 2020 (Chart 1). Excluding China, Asia will expand at a slower rate of 4.7% in 2021, up from …

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What is the Purpose of SFDR?

What is the Purpose of SFDR?

🕔16:55, 18.Mar 2021

It is part of a broad package of legislative tools designed to reorient capital towards more sustainable businesses. The main objective is to ensure that financial market participants are able to finance growth in a sustainable manner over the long term, while combating so-called greenwashing in which the positive environmental …

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China’s Economy: Recovery and Rebalancing

China’s Economy: Recovery and Rebalancing

🕔16:16, 18.Mar 2021

China and its strong economic recovery from the coronavirus pandemic have not gone unnoticed. Fourth‑quarter gross domestic product (GDP) growth came in at 6.5% year over year, pushing the annual average growth to 2.3% for 2020. China should be the only major economy to record economic growth …

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Podcast: The US economy and the USD credit market are in a stronger position than the euro area

Podcast: The US economy and the USD credit market are in a stronger position than the euro area

🕔12:42, 18.Mar 2021

A pick-up vs. EUR-denominated investment grade bonds of +110 bps, investors lock-in a higher yield in the USD market as hedging costs to EUR remain low …

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COVID and beyond: navigating the markets

COVID and beyond: navigating the markets

🕔10:12, 18.Mar 2021

We share the views of some of our portfolio managers and economists on navigating the equity and fixed income markets in the year ahead and beyond. They also share how the last year has influenced long-term developments in economic and market outlooks. 

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Some like it hot!

Some like it hot!

🕔08:24, 18.Mar 2021

At the end of last year, I reflected that you “gotta have faith in low discount rates” for risk assets, such as equities, to continue to perform well in 2021. While on the one hand the economic and earnings recovery from Covid-19 was, and continues to be, more potent than expected, allowing companies to grow-in to elevated multiples; on the other hand, an increase in ultra-cheap capital …

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