This report discusses the importance of the Solvency II capital charge in portfolio construction and asset allocation for insurance companies. It compares different approaches to guide equity investors under Solvency II, including standard equity portfolios, long-term equity portfolios, and protected
In a world in which asset managers are struggling to differentiate themselves and outperform their benchmarks, we believe that impact investing provides an answer largely through innovative portfolio construction and we would particularly like to highlight: The results obtained by
Markets have started 2023 strongly as some of the headwinds that dominated markets in 2022 have started to dissipate. China has reopened its economy faster than expected; warm weather in the euro area has eased concerns over natural gas shortages;
• ETFs posted $516mn of net inflows last week. Equity gathered $890mn while Money Market exposures attracted $105mn. • Fixed Income weathered …
Generating income is a key role of fixed income. For investors, the durability of income streams becomes more important amid heightened volatility in both equity and bond markets. The current market environment is characterized by persistent inflation and heightened market
Recessions are painful, no doubt about it. But they are necessary to clean out the excesses of prior growth periods, especially the more or less uninterrupted growth investors have enjoyed over the past decade.
Flash Update: The decision to invest in emerging markets today should be based on the economic forecasts for the region and managers’ ability to position themselves accordingly. Analysis of UBAM – Positive Impact Emerging Equity’s recent history can shed some
ETFs posted net inflows of $3.3bn last week, driven by Equity, which captured …
As nearly three years of lockdowns come to an end in China, will 2023 be a turning point for equity investors? Without a doubt, China’s equity risk premium is higher than other markets. As investment professionals with more than 25
Weekly as of 6 January 2022: ETFs posted strong net inflows of $3.3bn last week. Fixed Income captured $2.6bn while Equity took in smaller …
Last year saw a reversal of many of the past decade’s trends: – the US (-19%) was one of the worst performing markets, the UK was one of the best (+7% in GBP, -5% in USD) (slides 10-11) – growth
Year-to-date, EMEA markets have taken a hit, while several Asian EM, including China, lag the index. Conversely, commodity-producing Latin American and Middle Eastern markets have been the top performers. After the recent rally, and downward revisions to 2023 earnings expectations,
• ETFs posted net inflows of $597mn last week. Fixed Income captured $691mn while Equity took in smaller net inflows of …
In last year’s outlook (Outlook 2022: Pivoting to a new era) we discussed the idea that the world was entering a new macroeconomic regime after three decades in which globalisation and the technology revolution drove rapid growth in the supply
During Q3 2022, global markets continued to fall across the board, from equities, to bonds and commodities. No region, sector or style was immune to it. After a relief rally in July, equities fell, and bond yields rose as inflation
Why it’s time to look at liquid alternatives in a new light: The current market environment has not been kind to traditional multi-asset portfolios, with bonds providing little offset in an equity market brought down by rising interest rates. Central
While most investors are open to equity exposure in a low volatility market, they tend to shy away as volatility increases. To counteract equity volatility, asset managers have traditionally added perceived ‘safe haven’ assets like government bonds to the portfolio.
As difficult as Chinese equities have been over the past year, weakness in the health care sector has been notable. While President Biden’s announcement of a plan to boost US biomanufacturing sent shares of Chinese health care companies tumbling over
10 years is a long time in any walk of life. In the investment world it can feel like a lifetime. Since 2012 we have been through the depths of the European Sovereign Debt crisis, one of the longest equity
After a long hiatus, the resurgence of inflation has become a key concern for investors over the past year. Central banks are moving towards a tighter monetary stance as they seek to tame long-term inflation expectations. With falling real incomes
Schroders CIO Lens: At the beginning of the summer, I asked the question “are we there yet?”, in relation to whether it was time to start thinking about taking on more investment risk. The answer then was no. At that
Our baseline cyclical forecast includes shallow recessions and rising unemployment across large developed markets, with growth unlikely to bounce back quickly. Central bankers appear squarely focused on …
Economic and Market Review: Key Considerations for Equity Investors The outlook we laid out last quarter remains unchanged, and yet the debate about whether we are in a bull or bear market has been as volatile as the market itself.
Emerging market equity returns have been resilient year-to-date in the face of increasing uncertainty over the global economy and rising interest rates. The region remains our preferred choice in our model asset allocation, especially if inflation peaks, which we expect
Weekly as of 7 October 2022: ETFs posted net inflows of $1.4bn last week. Fixed Income captured $1.2bn, while Equity enjoyed $332mn of …
The outlook we laid out last quarter remains unchanged, and yet the debate about whether we are in a bull or bear market has been as volatile as the market itself. Bullish investors felt vindicated for a while, and offered
Weekly as of 30 September 2022: ETFs suffered heavy net outflows of $4.3bn last week. The outflows were driven by Fixed Income and Commodity exposures, which lost …
Economic intricacies and structural challenges are commonplace in Japan. But looking through the lens of individual companies shines a different light on the nation. In this paper, newly named portfolio managers of Capital Group Japan Equity strategy, Kohei Higashi and
Weekly as of 23 September 2022 ETFs suffered net outflows of $3.2bn last week. Equity saw the heaviest net outflows of $1.9bn. Fixed Income and Commodity exposures endured …
During 2020 the market went through a number of distinct phases from, 1) ignorance of the impending COVID-19 effects (January, February) to, 2) panic (end of February to mid-April) to, 3) the “world will need to change” as a broad
The Federal Reserve has an explicit dual mandate. Managed Futures strategies have an implicit one – specifically, 1) deliver positive returns on average and 2) generate especially attractive returns during large equity …
EMEA-Listed ETF Flash Flows – Weekly as of 19 August 2022 ETFs experienced strong inflows last week, adding $3.8bn. Equity led with net inflows of $3.3bn while Commodity lost …
World events continue to remind us how connected we all are. We are emerging from a global pandemic, supporting victims of war and tragic violence, confronting social and economic inequities, and addressing climate change. These events underscore the importance of
US CRE MARKET INSIGHTS June 2022: First quarter US CRE investment performance reported by NCREIF’s National Property Index (NPI) offers a continuation of the extraordinary total returns produced during 2021. Total return for the year ending March 2022 reached a
Ample runway for further value outperformance After a long run for growth-oriented companies, value names have outperformed more recently. We polled our LinkedIn audience to find out which investing style—growth or value—they think will outperform in 2022. The majority favored
Introduction USD22 billion to USD85 billion in the last 10 years.1 2021 was a stellar year for M&A2 activity, with more than 40,000 deals announced globally.3 Chances are that a fund manager will, at some point, be exposed to a
Key takeaways CDP* has recognised UBAM – Positive Impact Emerging Equity (PIEE) with a Climetrics Fund Award: The top five funds in each asset classes were picked from 18,000 global funds with a total value of EUR 15 trillion. PIEE
In this article, we try to address the following questions: (1) how has the US equity market evolved over the past few years in terms of active, passive, and retail investors?; (2) how has the factor-investing landscape changed (including ESG
China’s economy and equity market have grown substantially in size and prominence over the past decade. Mainland-listed China A-shares have likewise become more accessible to global investors during this expansion, broadening the opportunity set beyond offshore shares. As of Jan.
Capital Group Japan Equity Fund (LUX): Japanese equities fell, although they held up better than the global average after global stocks retreated in response to the news that Russia had invaded Ukraine. Sector returns were mixed. Consumer discretionary and …
Russia's invasion of Ukraine has caused severe market ructions. But the economic fallout from the crisis appears manageable. Just as the Covid crisis has begun to fade, a conflict in Ukraine is erupting. The question investors now face is the
January 2022 was a record month for European value equity, in terms of its outperformance vs. growth. The market’s reassessment of central banks’ actions after their hawkish turn has driven real yields higher and benefitted value stocks, while growth sectors
Asset Category: • ETFs posted $4.2bn of net inflows last week. Equity continued to see the strongest inflows, taking in $2.3bn. • Fixed Income and Commodity gathered net inflows of $1.1bn and $735mn, respectively.
Overnight headlines that Russia has begun a full-scale invasion of Ukraine have sent financial markets into acute risk-off mode. Equity markets fell sharply, oil prices jumped above $100 per barrel, and government bond yields declined. Markets had already been impacted
Sustainable investing has continued to grow at record pace. We believe one of the ways to generate value is to stick to long-term sustainable growth investing focused on the sustainable revolution underway in society. A growing number of companies and
In a bubble, no one wants to hear the bear case. It is the worst kind of party-pooping. For bubbles, especially superbubbles where we are now, are often the most exhilarating financial experiences of a lifetime. I participated in a
ETFs saw another strong week with $6.2bn of net inflows, driven predominantly by Equity, which captured …
Schroders Equity Lens: Global equities ended the year on a high note, rallying by 6.8% in Q4, as a strong earnings season coupled with a relatively stable interest rate environment supported performance …
Global equity markets edged down during 2021’s third quarter (Q3). Early in the period, strong corporate earnings in several parts of the world, full US regulatory approval for a COVID-19 vaccine, and the Chinese central bank’s liquidity-boosting measures aided markets.
Equity Outlook – October 2021: Equity markets are finding the transition to the post-pandemic landscape more challenging than one might have expected. While the Covid-19 pandemic is certainly not over, infection rates have been falling in most countries and high
