Back to the future: A guide to finding fixed income returns
|
|
- Zoe Wilkerson
- 7 years ago
- Views:
Transcription
1 FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION Back to the future: A guide to finding fixed income returns Fixed income strategy May 216 AUTHORS Nick Gartside International Chief Investment Officer, Global Fixed Income, Currency and Commodities Group Marika Dysenchuk Client Portfolio Manager, Global Fixed Income, Currency and Commodities Group IN BRIEF Low bond yields are casting a long shadow over fixed income investing. The combination of ultra-low money market rates and aggressive quantitative easing has caused the cost of bond investments to soar. Consequently, investors face difficult choices when making fixed income allocations in today s environment as they try to balance risk and return. In this paper we set out the macroeconomic and market context for today s low yield world. We also look in detail at Japan s long battle with low growth and low inflation to see if any lessons can be identified to help fixed income investors navigate today s markets. We believe that the current fixed income environment contains a range of interesting opportunities as well as challenges. The most important issue is to take an active approach to fixed income allocations. Today s markets will no longer reward investors who passively follow a fixed income benchmark and rely solely on yield compression for attractive returns. To capitalise on the current bond opportunities and avoid the pitfalls of a low yield world, the key is to focus on solutions-based investing, choosing the most appropriate strategies to match individual investment objectives, whether they are for capital preservation, liability matching, income distribution, or total return generation. Global economic backdrop: An absence of both growth and inflation Easy global monetary conditions, lack of inflation and financial repression will exercise downward pressure on long-term equilibrium yields and returns globally. J.P. Morgan Asset Management Long-Term Capital Markets Assumptions, 216 Viren Patel Client Portfolio Manager, Global Fixed Income, Currency and Commodities Group The current economic backdrop is one that is absent of both growth and inflation. Global growth has yet to recover since the 28 financial crisis, as debt levels have remained high and previous drivers of growth have waned. The significant debt overhang is still evident in both the public and private sectors, where meaningful deleveraging has yet to occur. Meanwhile, the emerging markets, which have seen their share of the world s GDP grow from just 2% in 23 to 4% in 21, have more recently exhibited a declining contribution to world trade growth as they shift from their traditional manufacturingfocused operations to services-oriented economies (see Exhibit 1A and Exhibit 1B). The structural decline across emerging markets has led to a decrease in global demand. When coupled with the significant excess supply in the commodities space, it is likely that inflation will remain at subdued levels. It is also worth noting that while there has certainly been an improvement in the labour market over the past five years, there continues to be some slack that has kept wage growth in check.
2 Although emerging markets continue to take a bigger share of global GDP, their contribution to global trade growth is declining EXHIBIT 1A: CONTRIBUTION TO GLOBAL GDP FROM DEVELOPED AND EMERGING MARKETS, % EXHIBIT 1B: EMERGING MARKET CONTRIBUTION TO GLOBAL TRADE GROWTH, PERCENTAGE POINTS Advanced economies Emerging market and developing economies '8 '84 '88 '92 '96 ' '4 '8 '12 '16 ' '92 '94 '96 '98 ' '2 '4 '6 '8 '1 '12 '14 Source: IMF DataMapper, IMF World Economic Outlook October 21, CPB World Trade Monitor, J.P. Morgan Asset Management; data as of December 21. In the face of this current and expected low growth environment, central banks have resorted to unprecedented monetary policies in an attempt to stimulate their economies. Previously unheard of measures ranging from large scale quantitative easing (QE) to long-term refinancing operations have led to abundant liquidity being injected into the system. In Europe, the European Central Bank (ECB) remains on an extremely accommodative path as it tries to achieve an inflation target of close to, but below 2%. Most recently, the ECB announced an aggressive extension of its existing QE programme. While some of the measures were broadly expected, such as a further deposit rate cut and an increase in the size of monthly financial asset purchases to EUR 8 billion, the ECB surprised markets with two new drastic measures: expansion of the list of eligible purchases to include corporate bonds, and a new series of targeted long term refinancing operations (TLTRO 2), which essentially allows banks to be paid for borrowing money. This significant package suggests that the ECB is both willing and able to come up with innovative easing policies, and we expect this trend to continue going forward. In the US, even following the much anticipated first rate increase from the Federal Reserve (the Fed), the market is questioning whether the US central bank will be able to raise rates again in 216, or whether it will be forced to pause given a strong US dollar coupled with global economic weakness and financial market instability. This phenomenon of addressing low growth with ultra accommodative central bank policy is not unique to the developed markets. Even the People s Bank of China has embarked on a variety of easing measures in an attempt to manoeuvre a soft landing for the Chinese economy, including cutting rates five times in 21 and enacting various policy measures to support infrastructure spending. ASSESSING THE IMPACT ON GLOBAL BOND MARKETS In the absence of the two bond investor enemies (growth and inflation), we expect government bond yields to remain low. In Europe, markets have defied expectations that already extremely low government bond yields could not go lower by breaking through the zero rate barrier. As the ECB s QE programme buys more debt than countries are issuing (Exhibit 2A), the resulting negative net supply pipeline has led to an environment in which nearly 4% of eurozone government bonds trade with a negative yield (Exhibit 2B). As a result of the pervasiveness of negative yielding government bonds in Europe, US Treasuries actually look attractive on a relative basis with the 1-year Treasury yielding 1.77% as of 31 March 216. The relative attractiveness of Treasury yields is likely to keep a cap on US government bonds as high quality fixed income investors search for yield. 2 FIXED INCOME
3 With the ECB soaking up new issuance, more than one third of the European government bond index now offers negative yields EXHIBIT 2A: 216 EUROPEAN BOND ISSUANCE, EUR BILLIONS 216 Issuance, EUR bn Germany France Italy Spain Netherlands Belgium ECB QE* Redemptions Gross Conventional Issuance Net issuance after ECB purchases Austria Finland Ireland Greece Portugal EXHIBIT 2B: EUROPE AND GLOBAL BOND INDEX EXPOSURE TO DIFFERENT YIELD BRACKETS, % to to to to.. to 1 1 to 2 Global Broad Market Index Euro Government Index 2 to 3 3 to 4 >4 Source: ECB, JP Morgan Chase & Co. *ECB quantitative easing on a cash basis. Data as of 24 March 216. Source: Bloomberg, BoAML, J.P, Morgan Asset Management; data as of 31 March 216. Additionally, there is historical evidence that the 1-year Treasury yield will remain anchored based on its relationship with the Fed Funds rate (Exhibit 3). Typically, when a terminal rate is reached at the end of a Fed tightening cycle, the yield curve is inverted (that is, the 1-year Treasury yield is lower than the base rate). Given the challenges we expect the Fed to have in reaching a terminal rate of 2% in the current tightening cycle, we believe that the 1-year Treasury will not go much higher than its current level. So, if government bond yields in the US and Europe aren t going up, can they continue to fall? The US Treasury yield curve has historically inverted as the Fed Funds rate has risen EXHIBIT 3: US INTEREST RATES AND 1-YEAR TREASURY YIELDS 7 % Fed Funds Rate US 1 year - Fed Funds Rate -2 '92 '93 '94 '9 '96 '97 '98 '99 ''1 '2 '3 '4' '6 '7 '8 '9 '1 '11 '12 '13 '14 '1 Source: Bloomberg, J.P. Morgan Asset Management; data as of 29 February 216. JAPAN AS A ROADMAP: WE VE BEEN HERE BEFORE While bond market participants have, for the last several years, been applying the widely held assumption that what goes down must surely go up, the direction of bond yields is anything but guaranteed. The Japanese situation proves this uncertainty: Japanese Government Bond (JGB) yields have remained at ultra low levels for over 2 years with little to no sign of rising. As global central banks continue to deploy tools to stimulate their respective economies to increasingly diminishing effects, we look to the well trodden path of Japan as an indication of what could play out in global fixed income markets. Let s look back at what led the Bank of Japan to adopt a zero interest rate policy, and the impact that doing so had on the JGB market. Following the bursting of the asset price bubble in Japan in the early 199s (which stemmed from excessive bank lending and the central bank s attempt to curb inflation by quickly hiking rates), real estate and equity prices declined significantly and stress pervaded the country s financial institutions. In an attempt to encourage commercial bank lending and revive demand, the central bank slashed interest rates from 6% in 1991 to less than 1% in 199, and eventually to % in Much of the Japanese scenario sounds akin to the current situation in the US, Europe and the UK, with aggregate debt levels high and the authorities struggling to ignite economic growth against a backdrop of high debt levels. The cause of the low interest rate environment is similar to Japan as well: J.P. MORGAN ASSET MANAGEMENT 3
4 following the bursting of the US real estate bubble and the ensuing global financial crisis, central banks have attempted to encourage business and consumer lending and rekindle demand by adopting very low interest rate policies. The US Fed was the first to begin reducing rates when it lowered the Fed Funds rate from.2% in 27 to.2% in 28, with the Bank of England and ECB both following suit. Even though the Fed finally raised interest rates off this lower bound for the first time in seven years in December 21, it is widely accepted that it will maintain an ultra accommodative stance for an extended period of time. In the UK, the Bank of England is expected to keep rates on hold at a record low of.% for longer than originally expected given a challenging global backdrop, while the ECB continues to implement monetary easing measures to support the fragile eurozone recovery. JAPAN S WARNING FOR CENTRAL BANKS While the scenario in Japan shares a common cause with the current situation in the US, UK and Europe (the bursting of an asset price bubble) and a common outcome (central banks exercising very low interest rate policies for an extended period of time), it is important to highlight several key differences. First, there are important structural distinctions between the Japanese economy and the US, UK and European economies, including stronger underlying economic growth, more robust demographic profiles, and a history of recent innovation in the US, UK and Europe. Perhaps even more importantly, the Bank of Japan s path to negative interest rates has not been one directional. After lowering rates to 2.% in 1987, the Bank of Japan changed course and proceeded to raise rates to 6% between 1989 and 1991, thereby thwarting any positive impact of the low rate environment. Furthermore, as equity markets began to rally at the turn of the millennium, the Bank of Japan once again reversed its accommodative stance and began raising rates, a cycle that was short lived as the policy rate again returned to % in early 21. Meanwhile, the Fed, ECB and Bank of England are being extremely cautious likely looking to Japan as a warning sign in not raising rates too soon, as they recognise that doing so could be detrimental to their economic recoveries much like it was to Japan s. The ECB learned this lesson from its own experience: after lowering rates to record low levels following the financial crisis, it raised rates in 211, citing higher headline inflation as the rationale. However, this move had a large negative impact on the already vulnerable eurozone economy, and the ECB was forced to reverse course and even became the first major central bank to cut rates into negative territory. While we do not see the Fed getting into a similar hike/cut scenario, it s not something that we can categorically rule out given the impact of global growth dynamics and financial market stress that we ve seen thus far in 216. THE IMPLICATIONS FOR FIXED INCOME RETURNS While there are noteworthy distinctions, it is still important to recognise that monetary policy in the US, UK and Europe is broadly following the same path as it has in Japan (at least since the Bank of Japan finally adopted and maintained its ultra low interest rate policy in 199). In fact, while we often think of QE as a more recent phenomenon, the Bank of Japan was the pioneer of this concept in 21 when it initiated current account balance targeting as a way to increase liquidity in the financial system. As such, it may be that the recent experience of the JGB market provides a good roadmap for the US, UK and European government bond markets over the next few years (Exhibit 4). Low government bond yields are often assumed to have a negative impact on fixed income returns, given the assumption that the next move in rates will be up and the lack of yield reduces the ability to generate return and cushion against rate rises. Nevertheless, Japanese fixed income has continued to provide investors with decent returns: the Bloomberg Japanese Sovereign Bond Index has provided annualised returns of 2.2% over the last five years to the end of 21. If Japan is the guide to the future, US, UK and German yields can fall further EXHIBIT 4: JAPAN VS. US, UK, GERMANY 1-YEAR GOVERNMENT BOND YIELDS % US, UK, Germany 1 year yields equally 4. weighted starting June Japan 1 year yields - starting Source: Bloomberg, J.P. Morgan Asset Management; data as of 31 March FIXED INCOME
5 These returns have been generated as JGB yields have defied market assumptions and continued to move lower: looking back five years, 1-year JGBs yielded.88%; at the end of 21, the yield was.27%. The recent move by the Bank of Japan to cut deposit rates into negative territory in January 216 suggests that government bond yields could move even lower. While in absolute terms a return of a little more than 2% may not strike investors as impressive, against low levels of interest rates and low levels of inflation these returns are ahead of inflation and powerfully demonstrate the ability of government bonds to deliver returns in a low yield environment. It s clear there are lessons to be learnt from the Japanese economy, the key is how to apply these lessons in practice to the rest of the world. THE IMPLICATIONS FOR THE INVESTMENT LANDSCAPE How has Japan s economic position and monetary policy response affected the country s investment landscape? Overall, the result of low government bond yields in Japan has caused investors to adopt more innovative strategies and investment managers to design new product offerings. In the early 2s we saw the start of this innovation with the emergence of Uridashi bonds, which are Japanese bonds denominated in higher yielding currencies, such as the Australian dollar and New Zealand dollar, so as to provide investors with a higher total return. The development of new investment products followed as commercial banks began launching investment trusts offering Uridashi strategies to retail investors. The next phase of product innovation in Japan was the rise of funds offering monthly distributions, as investors became increasingly interested in income over total return (Exhibit A). Following the financial crisis, Japanese investors became even more adventurous with their investment strategies and expanded their sector universe to incorporate high yield corporate bonds. However, they went one step further and adopted a new trend of double decker funds, which are high yield funds with currency overlays typically in the high yielding Brazilian real in order to further increase their return profile (Exhibit B). Innovation is a two-sided coin. Expanding your investment universe from both a sector and geographic perspective provides diversification and enhanced yield opportunities. Similarly, product innovation can help to solve the dilemmas that investors face in a constantly evolving investment environment. However, it is imperative that investors consider the risks associated with such strategies and that they are appropriately compensated for taking them. Low government bond yields in Japan have caused investors to adopt more innovative strategies and investment managers to design new product offerings EXHIBIT A: FUNDS WITH MONTHLY DISTRIBUTIONS IN JAPAN JPY Trillion '98 '99 ' '1 '2 '3 '4 ' '6 '7 '8 '9 '1 '11 '12 '13 '14 '1 Source: Ibbotson Associates Japan, J.P. Morgan Asset Management; data as of 31 August 21. EXHIBIT B: FUNDS WITH CURRENCY OVERLAY ( DOUBLE-DECKER FUNDS ) IN JAPAN JPY Trillion '96 '97 '98 '99 ' '1 '2 '3 '4 ' '6 '7 '8 '9 '1 '11 '12 '13 '14 '1 Source: Ibbotson Associates Japan, J.P. Morgan Asset Management; data as of 31 August 21. For instance, Uridashi bonds may be suitable for some investors, though they need to understand that these securities inherently have not only the credit risk associated with the issuer of the bond but also currency risk, which can be much more volatile than bonds. Investors should also be wary of strategies that rely on the performance of a single sector or on an individual economic scenario playing out: in the case of double-decker funds, the very specific exposure to both US high yield and the Brazilian real can be dangerous as they both have highly concentrated risk that tends to be correlated with risk-on/risk-off sentiment. Instead, we believe it is important to have an active asset allocation approach in order to take advantage of shifting market conditions the days of fire and forget are over. J.P. MORGAN ASSET MANAGEMENT
6 AN ACTIVE APPROACH CAN MAXIMISE OPPORTUNITIES FROM TODAY S BOND MARKETS While the current low yield environment creates a challenge for fixed income investors, one positive outcome over the past 2 years is the expansion of the global fixed income markets. With the growth of developed ex-us and emerging market bond markets, investors now have access to a wider array of opportunities. This expanded universe offers the potential for greater diversification, enhanced yield, and a more flexible duration profile. While the benefits of a large and diverse fixed income market may seem obvious, it is important to consider the nuances of how to access this growing asset class. Historically, fixed income investors have adhered to the traditional approach of benchmark investing, in which portfolios are positioned in line with market capitalisation weighted indices. The issue with this method of passive investing is that bond benchmarks inherently reward bad behaviour: those countries and companies with the most debt outstanding constitute the largest weight in the index even though they are the ones that may be least able to pay back their debt. Additionally, traditional fixed income benchmarks no longer provide sufficient protection against rising rates. Combining the low yield environment with issuers that have extended the duration of their debt leads to an eroded yield cushion (see Exhibit 6). We can also look to Japan as an example in this instance, where an ongoing low yield environment led to increased debt issuance, resulting in concentrated, rather than diversified, risk in bond benchmarks. Declining yields and rising duration is eroding the yield cushion provided by traditional bond indices, such as the Global Aggregate Index EXHIBIT 6: BARCLAYS GLOBAL AGGREGATE INDEX YIELD AND DURATION % Yield (%, LHS) Duration (year, RHS) Eroded yield cushion '96 '97 '98 '99 ' '1 '2 '3 '4 ' '6 '7 '8 '9 '1 '11 '12 '13 '14 '1 Years 8 Source: Barclays Live, J.P. Morgan Asset Management; data as of 31 March Instead of passive fixed income investing, we believe that today s fixed income markets require active management. As lenders of our clients money, we believe it is imperative to only invest in those countries and companies in which we have strong conviction that we can be repaid, with interest. In order to identify these opportunities, as well as avoid the negative credits, investors need to have a globally integrated, research driven approach to markets. ALLOCATING TO FIXED INCOME: A FLAVOUR FOR EVERY INVESTOR The extent to which investors employ active management varies depending on their risk tolerance and ultimate objective. For certain investors who engage in internal asset allocation, it is important to have access to single sector strategies so that they can use the individual building blocks in order to construct a comprehensive, diversified fixed income portfolio. For instance, distinguishing beyond just high yield and emerging market debt to look at more niche strategies, such as US vs. European high yield, or emerging market corporates vs. emerging market local currency approaches. Investors in single sector strategies must keep in mind the importance of diversifying risk at their overall portfolio level, and not concentrating too much in any particular strategy or theme. Despite the low yields across the government bond sector, strategies focusing on this area of the market remain appropriate for conservative investors who are focused on capital preservation and liquidity over generating yield and total returns. In this instance, aggregate strategies are an attractive way to gain exposure to an array of fixed income markets, including high quality government bonds, corporate bonds, agencies and mortgages. Given some of the challenges mentioned earlier pertaining to fixed income benchmarks, it is important when investing in these strategies to consider your view on the future path of rates and the impact of duration on your overall investment portfolio. Yet another way to access fixed income markets within an active context is to completely remove the concept of a benchmark and only invest in best ideas or what we call going unconstrained. There are several different methods of unconstrained investing, including those strategies that focus within a particular sector for instance, investing in an unconstrained manner across the emerging market debt or credit sectors as well as those that scan the entire global fixed income universe for opportunities and invest across government bonds, high yield and investment grade credit, mortgages and emerging market debt. 6 FIXED INCOME
7 While we have been in the current environment of low growth and muted inflation for an extended period, economic cycles are not dead and there will be times when you do want duration exposure or you do want an allocation to emerging market local currencies. By employing these flexible, unconstrained strategies, investors can allow experienced investment managers to make and time these allocation decisions, as well as to identify the individual securities that stand to benefit from the prevailing environment. The unconstrained approach brings with it the need for robust risk management. This is due to the fact that the absence of a benchmark places all of the risk onto the decision maker compared to single strategy approaches, which transfer much of the risk on the investor s choice of benchmark. As mentioned earlier, fixed income is a broad and diverse asset class, with close to USD 9 trillion of debt outstanding and over 24 bond categories (as split by Morningstar). As such, there is something for every type of investor. Rather than focusing on the underlying sectoral exposure or benchmark to be managed against, we believe it is key for investors to consider their ultimate objective and the solution they are trying to achieve, whether it is capital preservation, liability matching, income distribution, or total return generation. BRINGING IT ALL TOGETHER BUILDING EFFECTIVE FIXED INCOME PORTFOLIOS The twin enemies of bond investors growth and inflation are absent from today s global markets. As global central banks attempt to stimulate their economies with ultraaccommodative monetary policies, we expect rates to remain low across markets. However, that doesn t mean there are no returns to be had in fixed income; in fact, the JGB market is an example of the capacity for government bond markets with very low yields still to provide attractive returns. However, this environment of persistently low interest rates does require investors to be more attentive than ever to their approach to the fixed income asset class. PRIORITIES FOR BOND INVESTORS IN THIS ENVIRONMENT 99Active over passive. Given the growth of global fixed income markets and the increasing dispersion across sectors, combined with the eroded yield cushion on traditional fixed income benchmarks, it is even more important to employ an active approach that allows managers to shift portfolio positioning in response to changing market conditions. 99Solutions, not benchmarks. Without yield, benchmark returns are no longer guaranteed. Instead, we believe starting with the end result the solution you re looking for is the most productive method for achieving your objective. 9 9 Risk vs. return. While product innovation can help solve the dilemmas that investors face in an extended low yield environment, it does not come without risks. Investors must weigh the potential returns of their investments with the associated risks involved, and be careful not to layer on the same risk in different vehicles. J.P. MORGAN ASSET MANAGEMENT 7
8 FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION NEXT STEPS For more information, contact your J.P. Morgan representative. NOT FOR RETAIL DISTRIBUTION: This communication has been prepared exclusively for institutional/wholesale/professional clients and qualified investors only as defined by local laws and regulations. The views contained herein are not to be taken as an advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yield may not be a reliable guide to future performance. J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued by the following entities: in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority; in other EU jurisdictions by JPMorgan Asset Management (Europe) S.à r.l.; in Hong Kong by JF Asset Management Limited, or JPMorgan Funds (Asia) Limited, or JPMorgan Asset Management Real Assets (Asia) Limited; in India by JPMorgan Asset Management India Private Limited; in Singapore by JPMorgan Asset Management (Singapore) Limited, or JPMorgan Asset Management Real Assets (Singapore) Pte Ltd; in Taiwan by JPMorgan Asset Management (Taiwan) Limited; in Japan by JPMorgan Asset Management (Japan) Limited which is a member of the Investment Trusts Association, Japan, the Japan Investment Advisers Association, Type II Financial Instruments Firms Association and the Japan Securities Dealers Association and is regulated by the Financial Services Agency (registration number Kanto Local Finance Bureau (Financial Instruments Firm) No. 33 ); in Korea by JPMorgan Asset Management (Korea) Company Limited; in Australia to wholesale clients only as defined in section 761A and 761G of the Corporations Act 21 (Cth) by JPMorgan Asset Management (Australia) Limited (ABN ) (AFSL ); in Brazil by Banco J.P. Morgan S.A.; in Canada for institutional clients use only by JPMorgan Asset Management (Canada) Inc., and in the United States by JPMorgan Distribution Services Inc. and J.P. Morgan Institutional Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc. In APAC, distribution is for Hong Kong, Taiwan, Japan and Singapore. For all other countries in APAC, to intended recipients only. 4d3c2a83679 LV JPM3931 4/16
Forward guidance: Estimating the path of fixed income returns
FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY NOT FOR RETAIL USE OR PUBLIC DISTRIBUTION Forward guidance: Estimating the path of fixed income returns IN BRIEF Over the past year, investors have become
More informationMarket Bulletin. November 7, 2014. U.S. High Yield: A bubble set to burst?
November 7, 2014 U.S. High Yield: A bubble set to burst? Grace Tam, CFA Vide President Global Market Strategist J.P. Morgan Funds Katy Fang Research Analyst J.P. Morgan Funds Tai Hui Managing Director
More informationMarket Bulletin. European assets: Volatility strikes back. 12 June 2015. What has happened? AUTHOR. What has been driving this?
Market Bulletin 12 June 2015 European assets: Volatility strikes back What has happened? Rather than abating, as many had expected, the sell-off in European markets that began in late April has continued
More informationPROTECTING YOUR PORTFOLIO WITH BONDS
Your Global Investment Authority PROTECTING YOUR PORTFOLIO WITH BONDS Bond strategies for an evolving market Market uncertainty has left many investors wondering how to protect their portfolios during
More informationCapital preservation strategy update
Client Education Summit 2012 Capital preservation strategy update Head of Institutional Fixed Income Investments, Americas October 9, 2012 Topics for discussion 1 Capital preservation strategies 2 3 4
More informationSeparately managed accounts
FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY - NOT FOR RETAIL USE OR DISTRIBUTION Separately managed accounts A J.P. Morgan Global Liquidity solution Separately managed
More informationMarket Bulletin. China: Still sneezing hard. January 20, 2016 MARKET INSIGHTS. In brief
MARKET INSIGHTS Market Bulletin January 20, 2016 China: Still sneezing hard In brief Slower 4Q15 GDP and soft December data add to concerns about China s economic health. On a more encouraging note, we
More informationEvaluating the Australian Outlook through a Global Lens
Evaluating the Australian Outlook through a Global Lens Chris Siniakov Managing Director, Fixed Income International Bond Yields 4.00% 2-Year Government Yields as at 15 January 2015 3.00% 2.00% 1.00% 0.00%
More information20 August 2013. Can the dividend
2 August 213 Can the dividend d theme thrive in a rising rates environment? Grace Tam Vice President Global Market Strategist J.P. Morgan Funds Ben Luk Market Analyst Global Market Strategy Team J.P. Morgan
More informationJPMorgan Global Bond Fund. Global investing - A less volatile choice NEW. SFC-authorised global bond fund with RMB-hedged share classes*!
AVAILABLE FOR PUBLIC CIRCULATION NEW JPMorgan Global Bond Fund December 2015 Asset Management Company of the Year 2014 Fundamental Strategies, Asia + Important information 1. The Fund invests primarily
More informationThe spillover effects of unconventional monetary policy measures in major developed countries on developing countries
The spillover effects of unconventional monetary policy measures in major developed countries on developing countries Tatiana Fic National Institute of Economic and Social Research Objective The objective
More informationM&G Corporate Bond Fund
Quarterly Review M&G Corporate Bond Fund Third quarter 2015 Fund manager Richard Woolnough Overview A general risk-off tone prevailed in the third quarter amid significant volatility in risk markets, driving
More informationSTATE STREET INVESTOR CONFIDENCE INDEX SUMMARY
STATE STREET INVESTOR CONFIDENCE INDEX SUMMARY state street investor confidence index Measuring Investor Confidence on a Quantitative Basis The State Street Investor Confidence Index (the index) provides
More informationGlobal Client Group The Gateway to AWM
Global Client Group The Gateway to AWM January 2013 For professional investors only Content 1 2 3 Deutsche Bank and Asset Global Client Group Our product and service offering 1 Deutsche Bank A global partner
More information3Q14. Are Unconstrained Bond Funds a Substitute for Core Bonds? August 2014. Executive Summary. Introduction
3Q14 TOPICS OF INTEREST Are Unconstrained Bond Funds a Substitute for Core Bonds? August 2014 Executive Summary PETER WILAMOSKI, PH.D. Director of Economic Research Proponents of unconstrained bond funds
More informationSeeking a More Efficient Fixed Income Portfolio with Asia Bonds
Seeking a More Efficient Fixed Income Portfolio with Asia s Seeking a More Efficient Fixed Income Portfolio with Asia s Drawing upon different drivers for performance, Asia fixed income may improve risk-return
More informationHow Smaller Stocks May Offer Larger Returns
Strategic Advisory Solutions April 2015 How Smaller Stocks May Offer Larger Returns In an environment where the US continues to be the growth engine of the developed world, investors may find opportunity
More informationMERCER PORTFOLIO SERVICE MONTHLY REPORT
MERCER PORTFOLIO SERVICE MONTHLY REPORT MAY 206 Mercer Superannuation (Australia) Limited ABN 79 004 77 533 Australian Financial Services Licence # 235906 is the trustee of the Mercer Portfolio Service
More informationU.S. Fixed Income: Potential Interest Rate Shock Scenario
U.S. Fixed Income: Potential Interest Rate Shock Scenario Executive Summary Income-oriented investors have become accustomed to an environment of consistently low interest rates. Yields on the benchmark
More informationGlobal Investment Trends Survey May 2015. A study into global investment trends and saver intentions in 2015
May 2015 A study into global investment trends and saver intentions in 2015 Global highlights Schroders at a glance Schroders at a glance At Schroders, asset management is our only business and our goals
More informationA Checklist for a Bond Market Sell-off
A Checklist for a Bond Market Sell-off New Zealand Fixed Income Monthly Commentary February 2013 Christian@harbourasset.co.nz +64 4 460 8309 Just like 2011 and 2012, the start of a new year has again prompted
More informationThe return of yield to the high yield market
FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION The return of yield to the high yield market High yield credit November 215 AUTHORS IN BRIEF
More informationWhy ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group
Atul Lele alele@deltecinv.com +1 242 302 4135 David Munoz dmunoz@deltecinv.com +1 242 302 4106 David Frazer dfrazer@deltecinv.com +1 242 302 4156 Why ECB QE is Negative for Commodities Recent ECB Quantitative
More informationFinancial Repression: A Driving Force for Mergers and Acquisitions?
Strategy / Investment Financial Repression: A Driving Force for Mergers and Acquisitions? International capital markets have seen a growing number of corporate mergers and acquisitions (M&A) over the past
More informationBrutal February hurts commodities.
Brutal February hurts commodities. After a solid January, most of the major commodities went into reverse during February, triggered by individual events within the different sectors but also some general
More informationFixed Income Investor Presentation. July 2012
Fixed Income Investor Presentation July 2012 Cautionary Note on Forward Looking Statements Today s presentation may include forward-looking statements. These statements represent the Firm s belief regarding
More informationInvesting in Asia s Debt Markets
Investing in Asia s Debt Markets Alexandre Bouchardy, CFA Head of Fixed Income Asia April 2013 Content How to Capture the Asian Growth Story Hard or Local Currency Bonds? Risk and Return Opportunities
More informationGeneral Certificate of Education Advanced Level Examination January 2010
General Certificate of Education Advanced Level Examination January 2010 Economics ECON4 Unit 4 The National and International Economy Tuesday 2 February 2010 1.30 pm to 3.30 pm For this paper you must
More informationSmartRetirement Mutual Fund Commentary
SmartRetirement Mutual Fund Commentary J.P.Morgan Asset Management 3 rd Quarter 2014 Performance Highlights SmartRetirement s Performance Objectives The JPMorgan SmartRetirement Mutual Funds are designed
More informationTHE CASE FOR REAL RETURN INVESTING
Perpetual Investments THE CASE FOR REAL RETURN INVESTING For many, the primary goal of investing is to accumulate sufficient assets to fund a comfortable retirement whether that s in 5 or 50 years time.
More informationManaging Risk/Reward in Fixed Income
INSIGHTS Managing Risk/Reward in Fixed Income Using Global Currency-Hedged Indices as Benchmarks In the pursuit of alpha, is it better to use a global hedged or unhedged index as a benchmark for measuring
More informationAre we living in a Bond Bubble? Oliver Sinnott Fixed Income Strategist April 2014
Are we living in a Bond Bubble? Oliver Sinnott Fixed Income Strategist April 2014 Global Financial Crisis saw debt levels soar to highest since WWII Governments were too highly indebted to significantly
More informationTo beat, or not to beat
Market Bulletin May 13, 2016 1Q16 earnings update: Beating estimates, but not yet growing In brief Following the 2015 decline, S&P 500 earnings per share (EPS) fell -6.7% in the first quarter. 1 Companies
More informationDB Corporate Pensions puzzled by the negative interest rate policy Allocation to alternatives reaches record high
Tokyo Building 2-7-3, Marunouchi, Chiyoda-ku Tokyo, 100-6432, Japan This is a translation of the Japanese press release issued in Tokyo on 27 th June, 2016. Press Release J.P. Morgan Asset Management releases
More informationUPDATE ON CURRENT MACRO ENVIRONMENT
1 Oct 213 Macro & Strategy Equity Credit Commodities 13 13 #1 Global Strategy #1 Multi Asset Research #3 Global Economics #2 Equity Quant #2 Index Analysis #3 SRI Research 12 sector teams in the Top 1
More informationCIO Flash Revisions to our 2016 global outlook Jan 25, 2016
CIO Flash Revisions to our global outlook Jan 25, +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH The global macro picture:
More informationThe Case for International Fixed Income
The Case for International Fixed Income June 215 Introduction Investing in fixed-income securities outside of the United States is often perceived as a riskier strategy than deploying those assets domestically,
More informationToday s bond market is riskier and more volatile than in several generations. As
Fixed Income Approach 2014 Volume 1 Executive Summary Today s bond market is riskier and more volatile than in several generations. As interest rates rise so does the anxiety of fixed income investors
More informationJanuary 2015 business.westernunion.com.au
Western Union Business Solutions Currency Outlook January 2015 business.westernunion.com.au What s coming up Steven Dooley Currency Strategist APAC 2 History in the making! These are historic times US
More informationUnderstanding Fixed Income
Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding
More informationThe Credit Crisis: A Monetary Explanation
M O R G A N S T A N L E Y R E S E A R C H Global Economics The Credit Crisis: A Monetary Explanation Joachim Fels Chief Global Fixed Income Economist & Co-Head of Global Economics 33 rd Annual IOSCO Conference
More informationFixed Income: The Hidden Risk of Indexing
MANNING & NAPIER ADVISORS, INC. Fixed Income: The Hidden Risk of Indexing Unless otherwise noted, all figures are based in USD. Fixed income markets in the U.S. are vast. At roughly twice the size of domestic
More informationGlobal bond investing
Global bond investing Todd Schlanger, CFA Investment Strategy Group Vanguard Asset Management, Limited This document is directed at professional investors and should not be distributed to, or relied upon
More informationPrivate Equity in Asia
Private Equity in Asia October 21 Asia private equity, in particular China, has increasingly attracted attention from institutional investors due to the region s faster economic recovery, greater growth
More informationEQUINOX PERFORMANCE REPORT SEPTEMBER QUARTER 2006 MACQUARIE EQUINOX LIMITED PARTICIPATING SHARES ARBN 105 989 231
PERFORMANCE REPORT SEPTEMBER QUARTER 2006 MACQUARIE LIMITED PARTICIPATING SHARES ARBN 105 989 231 Market Commentary Hedge Fund Industry The direction of financial markets in the third quarter was broadly
More informationEmerging market local currency debt: A mainstream asset class.
Emerging market local currency debt: A mainstream asset class. As emerging market (EM) debt evolves as an asset class, it grows as a strategic holding for an expanding pool of investors, especially those
More informationTHE STATE OF THE ECONOMY
THE STATE OF THE ECONOMY CARLY HARRISON Portland State University Following data revisions, the economy continues to grow steadily, but slowly, in line with expectations. Gross domestic product has increased,
More informationSummary. Economic Update 1 / 7 May 2016
Economic Update Economic Update 1 / 7 Summary 2 Global World GDP is forecast to grow only 2.4% in 2016, weighed down by emerging market weakness and increasing uncertainty. 3 Eurozone The modest eurozone
More informationConsumer Credit Worldwide at year end 2012
Consumer Credit Worldwide at year end 2012 Introduction For the fifth consecutive year, Crédit Agricole Consumer Finance has published the Consumer Credit Overview, its yearly report on the international
More informationTARGET DATE COMPASS SM
TARGET DATE COMPASS SM METHODOLOGY As of April 2015 Any and all information set forth herein and pertaining to the Target Date Compass and all related technology, documentation and know-how ( information
More informationImpact of QE on Fixed Income
Impact of QE on Fixed Income David Greene, Client Portfolio Manager Pioneer Investments Unconstrained Approaches Potential returns mean investors have to be more opportunistic 5 0 Expected return based
More informationThe global economy Banco de Portugal Lisbon, 24 September 2013 Mr. Pier Carlo Padoan OECD Deputy Secretary-General and Chief Economist
The global economy Banco de Portugal Lisbon, 24 September 213 Mr. Pier Carlo Padoan OECD Deputy Secretary-General and Chief Economist Summary of presentation Global economy slowly exiting recession but
More informationA Best Practice Oversight Approach for Securities Lending
A Best Practice Oversight Approach for Securities Lending At its core, securities lending is an investment overlay strategy. It s an investment product that complements existing investment strategies allowing
More informationGlobal Markets Update Signature Global Advisors
SIGNATURE GLOBAL ADVISORS MARKETS UPDATE AUGUST 3, 2011 The following comments come from an internal interview with Chief Investment Officer, Eric Bushell. They represent Signature s current market views
More informationSecurities Finance: Fixed Income & Repo Market Update
MARKETS GROUP Securities Finance: Fixed Income & Repo Market Update Key Highlights from a Panel Discussion Fixed income and repo market participants are adapting to new regulations and fiscal realities
More information2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013
2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%
More informationUnderstanding Currency
Understanding Currency Overlay July 2010 PREPARED BY Gregory J. Leonberger, FSA Director of Research Abstract As portfolios have expanded to include international investments, investors must be aware of
More informationInvestment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?
Fixed income investments make up a large proportion of the investment universe and can form a significant part of a diversified portfolio but investors are often much less familiar with how fixed income
More informationSeeking Alternatives. Senior loans an innovative asset class
Trends 09 10.11 Seeking Alternatives Senior loans an innovative asset class Dirk Wieringa, Alternative Investments Advisory Senior loans are an innovative asset class that provide a hedge against rising
More informationHow To Be Cheerful About 2012
2012: Deeper into crisis or the long road to recovery? Bart Van Craeynest Hoofdeconoom Petercam Bart.vancraeynest@petercam.be 1 2012: crises looking for answers Global slowdown No 2008-0909 rerun Crises
More informationLegg Mason Global Investment Survey
Legg Mason Investment Survey When worldwide talk about money, what dominates the conversation? Where do they see opportunity, and where do they see peril? To learn more, Legg Mason surveyed affluent in
More informationBrexit Reflections. June 28, 2016 by Burt White of LPL Financial
Brexit Reflections June 28, 2016 by Burt White of LPL Financial KEY TAKEAWAYS The U.K. s unexpected decision to leave the EU sent markets reeling on Friday. We believe the Brexit s impacts on earnings
More informationFixed Income 2015 Update. Kathy Jones, Senior Vice President Chief Fixed Income Strategist, Schwab Center for Financial Research
Fixed Income 2015 Update Kathy Jones, Senior Vice President Chief Fixed Income Strategist, Schwab Center for Financial Research 1 Fed: Slow and Low 2015 Fixed Income Outlook 2 Yield Curve Flattening 3
More informationCategory Definitions. Korea Morningstar Methodology Paper October 2015. Ver1.0
Category Definitions Korea Morningstar Methodology Paper October 2015 Ver1.0 Equity Africa & Middle East Equity Africa & Middle East Equity funds invest primarily in African & Middle Eastern companies.
More informationThe U.S. dollar continues to be a primary beneficiary during times of market stress. In our view:
WisdomTree ETFs BLOOMBERG U.S. DOLLAR BULLISH FUND USDU Over the past few years, investors have become increasingly sophisticated. Not only do they understand the benefits of expanding their holdings beyond
More informationInvestors shun robo-advice despite drive to launch online solutions
Investors shun robo-advice despite drive to launch online solutions The UK s wealthiest investors are rejecting robo-advice solutions despite rising numbers of start-ups and established financial services
More informationEXPLORING SEPARATE ACCOUNTS
EXPLORING SEPARATE ACCOUNTS FOR INSTITUTIONAL AND FINANCIAL PROFESSIONAL USE ONLY SEPARATE ACCOUNTS In today s investment environment, where risks remain and meaningful returns on cash are hard to come
More informationSolvency II and Money Market Funds
Solvency II and Money Market Funds FOR INSTITUTIONAL INVESTORS ONLY NOT FOR USE BY OR DISTRIBUTION TO RETAIL INVESTORS Background The new European insurance regulatory framework, Solvency II, will require
More informationTHE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics
THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics The current financial crisis in the capital markets combined with recession
More informationIntroductory remarks by Jean-Pierre Danthine
abcdefg News conference Berne, 15 December 2011 Introductory remarks by Jean-Pierre Danthine I would like to address three main issues today. These are the acute market volatility experienced this summer,
More informationMLC Investment Management. Constructing Fixed Income Portfolios in a Low Interest Rate Environment. August 2010
Constructing Fixed Income Portfolios in a Low Interest Rate Environment August 2010 Stuart Piper Portfolio Manager MLC Investment Management For Adviser Use Only 1 Important Information: This Information
More informationFixed income: The future is flexible
FOR PROFESSIONAL CLIENTS ONLY NOT FOR RETAIL USE OR DISTRIBUTION INVESTMENT JUNE 2014 OUTLOOK & OPPORTUNITIES Please visit www.jpmam.com/insight for access to all of our Insights publications. AUTHORS
More information2015Q1 INVESTMENT OUTLOOK
TTG WEALTH MANAGEMENT 2015Q1 INVESTMENT OUTLOOK TABLE OF CONTENTS Contents 2015Q1 Core Asset Allocation Summary 1 2015Q1 Satellite Asset Allocation Summary 2 2014 Year-End Review 3 Investment Outlook for
More informationWhy Treasury Yields Are Projected to Remain Low in 2015 March 2015
Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While
More informationORBIS SICAV ORBIS SICAV. Introductory ORBIS BOOKLET GLOBAL BALANCED FUND
ORBIS SICAV ORBIS SICAV Introductory BOOKLET ORBIS GLOBAL BALANCED FUND ORBIS SICAV Société d Investissement à Capital Variable, R.C.S. Luxembourg B 90 049 Registered Office Orbis SICAV 31, Z.A. Bourmicht
More informationFixed Income Asset Allocation
Fixed Income Asset Allocation j a n n e y fixed income strat e g y While 2015 finished off with big spread widening in high yield, strong performance of our favorite sector, munis, overwhelmed losses in
More informationOpportunities in Emerging Market Corporate Debt
Opportunities in Emerging Market Corporate Debt June 2012 Hatteras Annual Conference Raleigh, North Carolina David C. Hinman, CFA Managing Principal and Chief Investment Officer Tel 949-207-6311 Fax 949-698-7267
More informationTHE CASE FOR EMERGING MARKET CORPORATE BONDS October 2013
THE CASE FOR ERGING MARKET CORPORATE BONDS October 2013 THIS DOCUMENT IS FOR PROFESSIONAL CLIENTS AND INSTITUTIONAL/QUALIFIED INVESTORS ONLY. THE CONTENT IS NOT TO BE VIEWED BY, OR USED WITH, RETAIL INVESTORS.
More informationBank of America Merrill Lynch Banking & Insurance CEO Conference Bob Diamond
4 October 2011 Bank of America Merrill Lynch Banking & Insurance CEO Conference Bob Diamond Thank you and good morning. It s a pleasure to be here and I d like to thank our hosts for the opportunity to
More informationABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong
Important Risk Disclosure for PAIF: ABF Pan Asia Bond Index Fund ( PAIF ) is an exchange traded bond fund which seeks to provide investment returns that corresponds closely to the total return of the Markit
More informationDepositary Receipts Listing and Cost of Equity
Depositary Receipts Listing and Cost of Equity September 00 Overview As activity in the depositary receipts (DRs) space has continued to increase significantly over the past few years, DRs remain the predominant
More informationCIO Flash U.S. Fed tapering
CIO Flash U.S. Fed tapering 19 December 2013 The art of tapering without spoiling markets (I) Final decision and first reaction Taper light, with strengthened forward guidance The Federal Open Market Committee
More informationCFA Institute Contingency Reserves Investment Policy Effective 8 February 2012
CFA Institute Contingency Reserves Investment Policy Effective 8 February 2012 Purpose This policy statement provides guidance to CFA Institute management and Board regarding the CFA Institute Reserves
More informationFresno County Employees Retirement System Core Plus & MSFD
Fresno County Employees Retirement System Core Plus & MSFD November 2, 2011 PRESENTED BY Stephanie S. Lord, CFA, CIC Vice President, Client Portfolio Manager One Financial Center Boston, Massachusetts
More informationSHARES GENERATE INCOME.
SHARES GENERATE INCOME. BELL POTTER COMMITTED TO PEOPLE, BUSINESSES AND COMMUNITIES. Bell Potter Securities Limited was founded by Colin Bell in Australia in 1970. We have grown to be one of Australia
More informationRecent Developments in Local Currency Bond Markets (LCBMs) 1. October 2013
Recent Developments in Local Currency Bond Markets (LCBMs) 1 October 2013 Given the importance of local currency bond markets (LCBMs), including in the context of the work now underway on financing for
More informationMarket Bulletin. Living in a less liquid world: The do s and don ts for bond investors. June 11, 2015. In Brief. Introduction
Market Bulletin June 11, 2015 Living in a less liquid world: The do s and don ts for bond investors AUTHORS Anastasia V. Amoroso, CFA Executive Director Global Market Strategist Ainsley E. Woolridge Market
More informationCrafting a Forward Looking Investment Portfolio
BOURSE SECURITIES LIMITED February 15th, 2016 Crafting a Forward Looking Investment Portfolio This week, we at Bourse evaluate the investment considerations and opportunities having looked previously at
More informationFIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK
1 FIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK By Michael McMurray, CFA Senior Consultant As all investors are aware, fixed income yields and overall returns generally have been
More informationAn Alternative Way to Diversify an Income Strategy
Senior Secured Loans An Alternative Way to Diversify an Income Strategy Alternative Thinking Series There is no shortage of uncertainty and risk facing today s investor. From high unemployment and depressed
More informationIndividual Savings Account Fund menu
Individual Savings Account Fund menu This fund menu lists all the funds available on our Individual Savings Account (ISA). Your financial adviser will be able to help you choose the right combination of
More informationUpdate following the publication of the Bank of England Stress Test. 16 December 2014
Update following the publication of the Bank of England Stress Test 16 December 2014 Background Top 8 Banks Resilience Stress Tested by PRA following FPC recommendation in March 2013 Guidance for stress
More informationHSBC Global Investment Funds Global Equity Volatility Focused
Important information: The Fund invests primarily in global equities. The Fund is subject to the risks of investing in emerging markets. For certain classes of the Fund, the Fund may pay dividends out
More informationMonetary Policy Matters
Monetary Policy Matters February 26, 2015 by Mark Mobius of Franklin Templeton Investments This year we expect the divergence in monetary policy among the world s central banks to be a key theme and a
More informationBond Market Momentum, Valuation and Risks
Bond Market Momentum, Valuation and Risks New Zealand Fixed Income Monthly Commentary August 1 christian@harbourasset.co.nz + 89 Global bond yields stabilised in July, as markets weighed up two opposing
More informationResearch. What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields?
Research What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields? The global economy appears to be on the road to recovery and the risk of a double dip recession is receding.
More informationNovember 2012. Figure 1: New issuance (US$ billion) presents attractive opportunities
November 2012 Emerging market corporate bonds attractive opportunities in a dynamic sector In a world where traditional fixed income investments, such as core government bonds, offer very low returns to
More informationAbsolute return: The search for positive returns in changing markets
Absolute return: The search for positive returns in changing markets Tuesday, 7 June 2011 Portfolio Manager for Global Fixed Income and Absolute Return Funds www.dbadvisors.com Topics for discussion What
More information