Investment Strategies for Pension Funds. Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK)

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Investment Strategies for Pension Funds. Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK)"

Transcription

1 Investment Strategies for Pension Funds Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK)

2 Pensions need consistency but markets deliver chaos Discrete Yearly Performance (%) by Market Global High Yield Bonds UK Equities UK Direct Property Cash UK Investment Grade Bonds European Equities Asia Equities Ex Japan Japanese Equities UK Gilts UK Small Cap Emerging Market Equities US Equities Source: Lipper, total returns, in terms, 31 December 2014

3 Rotate based on outlook? Recovery Real GDP 8 Overheat Inflation Recession 4 Stagflation

4 Conventional diversification Governance structure: Strategic Benchmark Asset classes Broad weights TAA (e.g. +/ 5%) Tracking Error limit Derived using: Historical data Asset class volatilities Correlations Capital market outlook Intuitive beliefs More likely exactly wrong than approximately right

5 Unstable risk characteristics Correlation to Global Equities of diversifying assets 90% 80% % 60% 50% 40% 30% 20% 10% 0% Property FX Basket Commodities Corporate Bonds Emerging Market Bonds High Yield Bonds Source: IPD UK Monthly Property Index, All Property; Federal Reserve Trade Weighted Exchange Value of US Dollar vs 6 Countries; Dow Jones UBS Commodity Index; Barclays Capital Global Corporate Index, Excess Returns; Barclays Capital Emerging Markets Index, Excess Returns; Barclays Capital US High Yield Index, Excess Returns; Standard Life Investments, 31 December 2011

6 Buy portfolio insurance? S&P 500 Total Return Index Cash Return Index (3m rates) Protected index, no cost Protected index allowing for cost Tail risk protection as many imagine it would be % p.a Historically you would have needed to pay 1.7% per quarter, on average, to cap losses at 5%

7 Characteristics of strongly diversified portfolios Benchmark agnostic / adaptable to changing conditions Broad Investment freedom Risk controls guard against hubris, concentration and event risk Sound philosophy and process

8 Broad Opportunity Set Traditional risk premia Selective Equity, Credit and Real Estate exposures Security selection alpha Cyclical / Directional opportunities Interest rates Australian Short Term Duration, Brazilian Gov t Bonds Currencies Long Mexican Peso vs Australian Dollar Volatility Long Equity Variance Relative value Geography Japanese vs Korean Equity Sector/Size Large US Tech vs US Small Cap Interest rates EU 10 year vs US and Japan 10 year rates

9 USD vs CAD and European equity performance Investment thesis US dollar undervalued and safe haven status Canadian economy debt issues and resource based Canadian exporters priced out USD / CAD is a risk off strategy European equities is a risk on position Negatively correlated ( 0.17 last 2 yrs) but positive return from each 450 Stoxx Europe 600 Total Return Index (LHS) USD/CAD (RHS) Jan 10 Jan 11 Jan 12 Jan 13 Jan Source: Standard Life Investments & Bloomberg

10 Broad based return potential with genuine diversity US equity European equity Global equity miners High yield credit Short US Duration Long European payer swaptions Mexican rates v EUR German v French equity Long INR v EUR Brazilian government bonds European v US and Japanese duration Long MXN v AUD European v US and Japanese duration EU corporate bonds Australian forward start interest rates US equity tech v small cap Long USD v EUR US butterfly Long USD v CAD Correlation to Global Equity Source: Standard Life Investments, Sungard APT, 31 March 2015

11 Step 1: Evaluate Current Risk Profile Total stand alone risk 14% 12% 10% 8% 6% 4% 2% 0% Market Returns Directional Security Selection Relative Value Diversification Expected volatility 8.8% 3.7% Ensure portfolio exposed to multiple risks & none dominate Total stand alone investment risk adequate to achieve the objective Portfolio risk analysis shows the benefits of investment diversification Source: Standard Life Investments GARS SICAV portfolio, 31 March 2015

12 Step 2: Historical Scenario Analysis MSCI World (EUR) move over same period* GARS Portfolio Black Monday 1987 Gulf War 1990 Rate Rise 1994 Mexican Crisis 1995 Asian Crisis 1997 Russian/LTCM Tech Wreck (April 07 14, 2000) Sept 11th Equity Sell Off (August 23 October 09, 2002) Equity Rally (October 10 November 27, 2002) Gulf War 2 (March 01 23, 2003) Bond Rally (May 01 June 13, 2003) Bond Sell Off (June 14 July 31, 2003) Emerging Market Sell Off 2006 (May 01 June 08, 2006) Subprime Debacle 2007 (July 15 August 15, 2007) Bank Meltdown 2008 (September 12 October 15, 2008) Euro Crisis (July 22 August 23, 2011) QE jitters (May 22 June 24, 2013) * MSCI World Returns prior to 2000 denoted in European Currency Units, except for 1987 which is denoted in German Marks Source: GARS SICAV, RiskMetrics, 31 March 2015 % Move

13 Step 3: Forward looking Scenarios World Economic Forum 2013: Economic / Environmental Geopolitical / Societal Technological What do you envisage the flashpoints could be? Cold War 2 Acropolis Now China crisis Dunkin Disappointment Trade war Commodity shock

14 China Crisis Description Property market slowdown causes growth to drop sharply Fixed asset investment deteriorates Labour market strained, wage growth and consumption slows Risk of banking crises as defaults rise Key Factor (examples) Shock (estimates) Oil 47% Australian Dollar 15% HSI 60% 10y US Treas. Yld. 50bps Social/political unrest as government forced to recapitalise banks Combining expert judgement with quantitative discipline Sources: Standard Life Investments & Bloomberg, March 2015

15 Acropolis Now Description Key Factor (examples) Shock (estimates) Debt re profiling unsuccessful so Greek exit is prepared European Equity 40% Depositors withdraw bank deposits and gov t bonds default Euro 15% QE fails to stem contagion through Europe and beyond Italian 10y yld +300bps Political uncertainty in UK and Spain makes investors nervous German 10y yld 30bps Sources: Standard Life Investments & Bloomberg, March 2015

16 Dunkin Disappointment Description Key Factor (examples) Shock (estimates) Wages slow, suppressing confidence and spending US Large Cap 12% Margins and revenue static, earnings disappoint pressuring wages US$ 5% Rate hikes delayed, curve flattens and USD sells off Brazilian Real 5% US, as engine for world recovery, causes EM currencies to weaken 10y US Treas. Yld. 40bps Sources: Standard Life Investments & Bloomberg, March 2015

17 A word on market volatility and outcome uncertainty Longer investment time periods appear to make the return more consistent Source: Standard Life Investments, Datastream, S&P500 Index total return from 1965 to 2014

18 Market volatility and outcome uncertainty In fact the outcome for investors becomes more varied Source: Standard Life Investments, Datastream, S&P500 Index total return from 1965 to 2014

19 Investment Strategies for Pensions Portfolio governance that enables: Broad Investment freedom Balance of portfolio risk Sound philosophy and process

20

Preparing for the Unknown Unknowns - Forward-looking Portfolio Stress Testing. Canadian Investment Review Risk Conference

Preparing for the Unknown Unknowns - Forward-looking Portfolio Stress Testing. Canadian Investment Review Risk Conference This presentation is intended for investment professionals and must not be relied on by anyone else Preparing for the Unknown Unknowns - Forward-looking Portfolio Stress Testing Canadian Investment Review

More information

2015 2 nd Quarter Market Commentary

2015 2 nd Quarter Market Commentary 2015 2 nd Quarter Market Commentary 1 Second Quarter Summary The U.S. Federal Reserve communicated that recent economic growth means the era of easy money may soon come to a close, causing bond yields

More information

International fixed income: The investment case FOR EXISTING VANGUARD ADVICE CLIENT USE ONLY. NOT FOR DISTRIBUTION

International fixed income: The investment case FOR EXISTING VANGUARD ADVICE CLIENT USE ONLY. NOT FOR DISTRIBUTION International fixed income: The investment case Why international fixed income? International bonds currently make up the largest segment of the securities market Ever-increasing globalization and access

More information

Staying alive: Bond strategies for a normalising world

Staying alive: Bond strategies for a normalising world Staying alive: Bond strategies for a normalising world Dr Peter Westaway Chief Economist, Europe Vanguard Asset Management November 2013 This document is directed at investment professionals and should

More information

JPMorgan Global Bond Fund. Global investing - A less volatile choice NEW. SFC-authorised global bond fund with RMB-hedged share classes*!

JPMorgan 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 information

RISK ALLOCATION IN THE 21 ST CENTURY. February 2012. SEATTLE 206.622.3700 LOS ANGELES 310.297.1777 www.wurts.com

RISK ALLOCATION IN THE 21 ST CENTURY. February 2012. SEATTLE 206.622.3700 LOS ANGELES 310.297.1777 www.wurts.com RISK ALLOCATION IN THE 21 ST CENTURY February 2012 SEATTLE 206.622.3700 LOS ANGELES 310.297.1777 www.wurts.com AGENDA INVESTMENT APPROACH SAMPLE RISK DASHBOARD GOVERNANCE 2 INVESTMENT APPROACH 3 WHY DOES

More information

Fresno County Employees Retirement System Core Plus & MSFD

Fresno 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 information

Global Markets Update Signature Global Advisors

Global 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 information

Economy, Capital Markets & Strategy

Economy, Capital Markets & Strategy Sébastien Mc Mahon, CFA Economist Member, Asset Mix Committee Economy, Capital Markets & Strategy 2014 National Business Conference October 2014 1 October 23, 2014 Disclaimer Opinions expressed in this

More information

Global bond investing

Global 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 information

Impact of QE on Fixed Income

Impact 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 information

M&G Corporate Bond Fund

M&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 information

Are 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 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 information

2013 GSAM Insurance Survey & Industry Investment Trends

2013 GSAM Insurance Survey & Industry Investment Trends Global Insurance Asset Management AASCIF Annual Workshop Fall 23 23 GSAM Insurance Survey & Industry Investment Trends Michael Siegel, PhD Global Head of GSAM Insurance Asset Management September 3, 23

More information

Global Absolute Return Strategies Fund

Global Absolute Return Strategies Fund Q1 2016 Global Absolute Return Fund 31 March 2016 The Standard Life Investments Global Absolute Return Fund aims to provide positive investment returns in all market conditions over the medium to long

More information

CIO Flash Revisions to our 2016 global outlook Jan 25, 2016

CIO 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 information

1. Gold as a risk-management vehicle: goldboerse +41612623738 info@goldboerse.ch www.goldboerse.ch 1

1. Gold as a risk-management vehicle: goldboerse +41612623738 info@goldboerse.ch www.goldboerse.ch 1 Prepared by Ryan Case and Adam Offermann, Trading & Business Development, January 2014 This article presents a number of compelling arguments for investing in gold. It explores gold s role as a risk management

More information

Sources of return for hedged global bond funds

Sources of return for hedged global bond funds Research commentary Sources of return for hedged global bond funds August 2012 Author Roger McIntosh Executive summary. The recent results in key bond market indices demonstrate the importance of a strategic,

More information

Verzeichnis der von der Kursliste der eidg. Steuerverwaltung per 31.12.2012 abweichenden Steuerwerte für die Staatssteuerveranlagung 2012

Verzeichnis der von der Kursliste der eidg. Steuerverwaltung per 31.12.2012 abweichenden Steuerwerte für die Staatssteuerveranlagung 2012 Verzeichnis der von der Kursliste der eidg. Steuerverwaltung per 31.12.2012 abweichenden Steuerwerte für die Staatssteuerveranlagung 2012 gilt nur für natürliche Personen mit Domizil im Kanton Basel-Landschaft

More information

2015 Mid-Year Market Review

2015 Mid-Year Market Review 2015 Mid-Year Market Review Cedar Hill Associates, LLC www.cedhill.com 6111 North River Road, Suite 1100, Rosemont, Illinois 60018 Phone: 312/445-2900 An Affiliate of MB Financial Bank 2015 Major Investment

More information

MLC Investment Management. Constructing Fixed Income Portfolios in a Low Interest Rate Environment. August 2010

MLC 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 information

Regulatory risk metrics and the independent risk function (IRF)

Regulatory risk metrics and the independent risk function (IRF) Measuring risk and performance in multi asset investment This document is for Professional Clients only and is not for consumer use There are three key risk management functions in our multi asset approach.

More information

Fixed Income ETFs 301 International Fixed Income ETFs. Presenter: RONIT WALNY SVP and Global Product Manager with PIMCO

Fixed Income ETFs 301 International Fixed Income ETFs. Presenter: RONIT WALNY SVP and Global Product Manager with PIMCO Fixed Income ETFs 301 International Fixed Income ETFs Presenter: RONIT WALNY SVP and Global Product Manager with PIMCO Inside Fixed Income Conference November 2015 Pacific Investment Management Company

More information

Economic & Market Outlook

Economic & Market Outlook Monthly Portfolio Commentary December 31, 2015 Economic & Market Outlook Stocks rebounded in 2015 s fourth quarter, but provided little reward for the year as a whole. The S&P 500 Index recovered from

More information

Investment Strategy for Pensions Actuaries A Multi Asset Class Approach

Investment Strategy for Pensions Actuaries A Multi Asset Class Approach Investment Strategy for Pensions Actuaries A Multi Asset Class Approach 16 January 2007 Representing Schroders: Neil Walton Head of Strategic Solutions Tel: 020 7658 2486 Email: Neil.Walton@Schroders.com

More information

SmartRetirement Mutual Fund Commentary

SmartRetirement 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 information

Building a better bond portfolio

Building a better bond portfolio Global diversification Risk reduction, portfolio completion, and opportunity for return Catherine LeGraw, Director BlackRock Multi Asset Client Solutions (BMACS) April 7, 2011 Outline 1 2 3 Trends in asset

More information

HSBC Global Investment Funds Global Equity Volatility Focused

HSBC 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 information

NPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst

NPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst White Paper: NPH Fixed Income Research Update Authored By: Bob Downing, CFA NPH Senior Investment & Due Diligence Analyst National Planning Holdings, Inc. Due Diligence Department National Planning Holdings,

More information

2012: Deeper into crisis or the long road to recovery?

2012: Deeper into crisis or the long road to recovery? 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 information

2013 global equity outlook: Searching for alpha in a stock picker s market

2013 global equity outlook: Searching for alpha in a stock picker s market March 2013 2013 global equity outlook: Searching for alpha in a stock picker s market Saira Malik, Head of Global Equity Research, TIAA-CREF Executive summary The outlook for equity markets is favorable

More information

FINANCIAL REPORT - MARCH 2015

FINANCIAL REPORT - MARCH 2015 FINANCIAL REPORT - MARCH 2015 SUMMARY OF THE MACROECONOMIC INFORMATION The macroeconomic scenario Deflation in Europe, the USA well. The passage of years is very positive for the United States: the positive

More information

March 2015. Investment policy. CH, DE, AT, IT, FR, FL and LU edition

March 2015. Investment policy. CH, DE, AT, IT, FR, FL and LU edition March 2015 Investment policy CH, DE, AT, IT, FR, FL and LU edition Further expansion of the equity exposure in Europe and the emerging countries. The Swisscanto equities barometer 0 neutral allocation

More information

PRUDENT RISK MANAGEMENT IN TIMES OF UNCERTAINTY. Torsten Jeworrek

PRUDENT RISK MANAGEMENT IN TIMES OF UNCERTAINTY. Torsten Jeworrek PRUDENT RISK MANAGEMENT IN TIMES OF UNCERTAINTY Torsten Jeworrek Monte Carlo, 9 September 2012 Macroeconomic Outlook Global economy slowing down, outlook sees only modest improvements highly uncertain

More information

Harvesting bond returns as rates rise

Harvesting bond returns as rates rise November 214 For professional investors and advisers only. Harvesting bond returns as rates rise The climate is changing for fixed income. Quantitative easing is winding down. Interest rates look ready

More information

Seeking a More Efficient Fixed Income Portfolio with Asia Bonds

Seeking 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 information

Unconstrained Fixed Income: One Asset Manager s Perspective HIMCO Webinar

Unconstrained Fixed Income: One Asset Manager s Perspective HIMCO Webinar Unconstrained Fixed Income: One Asset Manager s Perspective HIMCO Webinar October 1, 2014 14-0408 Unconstrained Fixed Income: One Asset Manager s Perspective Presenters Christopher Zeppieri, CFA Vice President

More information

Portfolio Series Portfolio Review Second Quarter 2010

Portfolio Series Portfolio Review Second Quarter 2010 Portfolio Series Portfolio Review Second Quarter 2010 We are pleased to introduce Portfolio Review, a new quarterly report on Portfolio Series. 3 Portfolio Series Income Fund 7 Portfolio Series Conservative

More information

Why own bonds when yields are low?

Why own bonds when yields are low? Why own bonds when yields are low? Vanguard research November 213 Executive summary. Given the backdrop of low yields in government bond markets across much of the developed world, many investors may be

More information

Effective Techniques for Stress Testing and Scenario Analysis

Effective Techniques for Stress Testing and Scenario Analysis Effective Techniques for Stress Testing and Scenario Analysis Om P. Arya Federal Reserve Bank of New York November 4 th, 2008 Mumbai, India The views expressed here are not necessarily of the Federal Reserve

More information

Why ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group

Why 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 information

Seven-year asset class forecast returns, 2015 update

Seven-year asset class forecast returns, 2015 update Schroders Seven-year asset class forecast returns, 2015 update Craig Botham Emerging Markets Economist Introduction Our seven-year returns forecast builds on the same methodology which has been applied

More information

ANZ ETFS PHYSICAL RENMINBI ETF. (ASX Code: ZCNH)

ANZ ETFS PHYSICAL RENMINBI ETF. (ASX Code: ZCNH) ANZ ETFS PHYSICAL RENMINBI ETF (ASX Code: ZCNH) INVESTMENT BUILDING BLOCKS FOR A CHANGING WORLD Introducing a suite of innovative exchange traded funds (ETFs) designed for Australian investors by ANZ

More information

First Quarter 2015 Financial Market Commentary April, 2015. Stocks Hit New Highs in a Volatile Quarter

First Quarter 2015 Financial Market Commentary April, 2015. Stocks Hit New Highs in a Volatile Quarter Hit New Highs in a Volatile Quarter Stock investors in the U.S. and around the globe had plenty to cheer about during the first quarter of 2015 as at least 17 world stock indexes set news highs due to

More information

Managing Risk/Reward in Fixed Income

Managing 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 information

Fund descriptions, their charges and risk warnings

Fund descriptions, their charges and risk warnings Fund descriptions, their charges and risk warnings This document was produced in March 2015 and is accurate at that date. When reviewing your fund choices you should refer to up-to-date information, available

More information

Is Gold Worth Its Weight in a Portfolio?

Is Gold Worth Its Weight in a Portfolio? Is Gold Worth Its Weight in a Portfolio? During a weak global economy and uncertain financial markets, many investors tout the benefits of holding gold. Some proponents claim that gold deserves a significant

More information

THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS

THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS THE US DOLLAR, THE EURO, THE JAPANESE YEN AND THE CHINESE YUAN IN THE FOREIGN EXCHANGE MARKET A COMPARATIVE ANALYSIS ORASTEAN Ramona Lucian Blaga University of Sibiu, Romania Abstract: This paper exposes

More information

Are Unconstrained Bond Funds a Substitute for Core Bonds?

Are Unconstrained Bond Funds a Substitute for Core Bonds? TOPICS OF INTEREST Are Unconstrained Bond Funds a Substitute for Core Bonds? By Peter Wilamoski, Ph.D. Director of Economic Research Philip Schmitt, CIMA Senior Research Associate AUGUST 2014 The problem

More information

Diversify portfolios with U.S. and international bonds

Diversify portfolios with U.S. and international bonds Diversify portfolios with U.S. and international bonds Investing broadly across asset classes such as stocks, bonds and cash can help reduce volatility and risk within a portfolio. Canadian investors have

More information

Good for business: get your forex transactions on track

Good for business: get your forex transactions on track Companies Foreign currencies Good for business: get your forex transactions on track Do you want to hedge foreign currency risks or invest in forex? A bank that takes your needs into account and provides

More information

Why Are Government Bond Yields Still Low, and Are They Going up Any Time Soon?

Why Are Government Bond Yields Still Low, and Are They Going up Any Time Soon? September 015 MONTHLY MARKET INSIGHT Why Are Government Bond Yields Still Low, and Are They Going up Any Time Soon? The fear of rising interest rates, which has clouded investors psyches for years, has

More information

MACROECONOMIC OVERVIEW

MACROECONOMIC OVERVIEW MACROECONOMIC OVERVIEW MAY 20 Koç Holding CONTENTS Global Economy... 3 Global Financial Markets... 3 Global Economic Growth Forecasts... 3 Turkey Macroeconomic Indicators... Economic Growth... Industrial

More information

MERCER PORTFOLIO SERVICE MONTHLY REPORT

MERCER 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 information

HSBC World Selection Portfolios The smart way to diversify your customers investments

HSBC World Selection Portfolios The smart way to diversify your customers investments HSBC World Selection Portfolios The smart way to diversify your customers investments 2 A smart way to invest 3 The benefit of diversification 6 How is HSBC World Selection managed? 8 What are the advantages

More information

Inside the Markets Conference Call

Inside the Markets Conference Call Inside the Markets Conference Call April 3, 2014 Presented by: Hefren-Tillotson Asset Management Meticulous Wealth Management Since 1948 Hefren-Tillotson, Inc. 308 Seventh Ave Pittsburgh, PA 15222 Ph:

More information

Outlook. for theus Dollar

Outlook. for theus Dollar Outlook for theus Dollar The US dollar staged one of its most powerful rallies in August, with the 1 rising nearly 6% 2 that month. The breadth of the rally was also impressive, with the currency rising

More information

How Gold Improves Alternative Asset

How Gold Improves Alternative Asset How Gold Improves Alternative Asset Performance Alternative investments began gaining traction during the inflationary times of the late 1970s and early 1980s. Modern Portfolio Theory (MPT), as outlined

More information

Drobny Guest Research September 12, 2012

Drobny Guest Research September 12, 2012 Drobny Guest Research September 12, 2012 3701 Highland Ave, Suite 302, Manhattan Beach, CA 90266 andres@drobny.com (310) 545-6996 ------------------------------------------------------------------------------------------------------------

More information

PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT

PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT PENSIONS INVESTMENTS LIFE INSURANCE PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT FOR PERSONAL RETIREMENT SAVINGS ACCOUNT () PRODUCTS WITH AN ANNUAL FUND MANAGEMENT CHARGE OF 1% - JULY 201 Thank

More information

2013 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 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 information

Investing in Bonds challenges and opportunities in 2015

Investing in Bonds challenges and opportunities in 2015 For Financial Brokers and Advisors Only Investing in Bonds challenges and opportunities in 2015 March 2015 Andy Ivory-Corr, QFA, Grad Dip, CFP Head of Investments New Ireland Assurance What exactly is

More information

The global economy and financial markets. Global growth remained moderate in 2012, restrained by the ongoing. The recession in many European economies

The global economy and financial markets. Global growth remained moderate in 2012, restrained by the ongoing. The recession in many European economies Financial year Market environment The eurozone debt crisis dominated financial market developments. High uncertainty and sluggish growth further lowered benchmark government bond yields. The global economy

More information

SHORT DURATION BONDS

SHORT DURATION BONDS SHORT DURATION BONDS Our Short Duration Bond Fund range RL Short Duration Gilt Fund RL Short Duration Global Index Linked Bond Fund RL Short Duration Credit Fund RL Duration Hedged Credit Fund RL Short

More information

Forum. Protection Strategies: Thinking beyond the VIX. A meeting place for views and ideas. Thomas Gillespie PhD, Director, Investment Risk Advisory

Forum. Protection Strategies: Thinking beyond the VIX. A meeting place for views and ideas. Thomas Gillespie PhD, Director, Investment Risk Advisory Forum A meeting place for views and ideas Protection Strategies: Thinking beyond the VIX Published September 2012 Authored by: Thomas Gillespie PhD, Director, Investment Risk Advisory Scott Maidel CFA

More information

Index Solutions A Matter of Weight

Index Solutions A Matter of Weight Index Solutions A Matter of Weight Newsletter No. 11 Our current newsletter is about weight, or more precisely the weighting of equities in an index. Non-market capitalization weighted indices are at present

More information

2015 FUZZY DAY CONFERENCE Facts that are Not Facts. The US dollar Safe Haven Myth and the United States Hedge Fund.

2015 FUZZY DAY CONFERENCE Facts that are Not Facts. The US dollar Safe Haven Myth and the United States Hedge Fund. 2015 FUZZY DAY CONFERENCE Facts that are Not Facts The US dollar Safe Haven Myth and the United States Hedge Fund Alessio de Longis 1 The Role of Currency in Institutional Portfolios, edited by Momtchil

More information

www.medirectbank.be Quarterly Report Wealth Management All content 2016 MeDirect More information visit www.medirectbank.be July - September 2015

www.medirectbank.be Quarterly Report Wealth Management All content 2016 MeDirect More information visit www.medirectbank.be July - September 2015 www.medirectbank.be Quarterly Report Wealth Management July - September 2015 All content 2016 MeDirect More information visit www.medirectbank.be In a volatile year such as 2015, a good asset manager proves

More information

Challenging Conventional Wisdom

Challenging Conventional Wisdom with Rick Golod GLOBAL INVESTMENT INSIGHT August 7, 2015 Challenging Conventional Wisdom Rick Golod Chief Global Strategist It wasn t just a difficult month for investors; it s been a difficult year. Perhaps

More information

PROTECTING YOUR PORTFOLIO WITH BONDS

PROTECTING 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 information

San Diego City Employees Retirement System

San Diego City Employees Retirement System San Diego City Employees Retirement System Asset Allocation Review July 9, 2015 Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 1 (This page

More information

The Chinese University of Hong Kong

The Chinese University of Hong Kong Member Review for The Chinese University of Hong Kong 8 & 9 March 2007 0 Agenda Fidelity Your Reliable Retirement Partner Portfolio Review Performance Market Review & Outlook Member Services 1 Fidelity

More information

Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014

Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014 Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014 VP: Miraj Rahematpura Associate: John Cherian Analysts: Reinier Eenkema van Dijk, Michael Limandibhratha, Ian Naccarella, David

More information

Six Strategies for Volatile Markets When markets get choppy, it pays to have a plan for your investments, and to stick to it.

Six Strategies for Volatile Markets When markets get choppy, it pays to have a plan for your investments, and to stick to it. Six Strategies for Volatile Markets When markets get choppy, it pays to have a plan for your investments, and to stick to it. Fidelity Viewpoints 8/22/15 The markets have become volatile again, prompted

More information

Slow economic growth, low inflation and central banks accommodating policies have pressed down on bond yields worldwide in recent years.

Slow economic growth, low inflation and central banks accommodating policies have pressed down on bond yields worldwide in recent years. ING Investment Office Publication date: 11 April 2016 Fixed Income Outlook By Simon Wiersma, Investment Manager Slow economic growth, low inflation and central banks accommodating policies have pressed

More information

Absolute return: The search for positive returns in changing markets

Absolute 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

Fixed Income What risks should we worry about? Simon Doyle, Head of Fixed Income & Multi-Asset

Fixed Income What risks should we worry about? Simon Doyle, Head of Fixed Income & Multi-Asset February 2016 Schroders Fixed Income What risks should we worry about? Simon Doyle, Head of Fixed Income & Multi-Asset Overview When former Prime Minister Malcolm Fraser said that life wasn t meant to

More information

CAPITAL MARKETS REVIEW Q4 2011

CAPITAL MARKETS REVIEW Q4 2011 CAPITAL MARKETS REVIEW Q4 2011 Reviewing the quarter ended September 30, 2011 J. Matthew Hager // David S. Dennerll, CFP // Benjamin R. Stacy 255 East Fifth St. Suite 2210 // Cincinnati, OH 45202 513-287-6778

More information

Investment Risk Management Under New Regulatory Framework. Steven Yang Yu Muqiu Liu Redington Ltd

Investment Risk Management Under New Regulatory Framework. Steven Yang Yu Muqiu Liu Redington Ltd Investment Risk Management Under New Regulatory Framework Steven Yang Yu Muqiu Liu Redington Ltd 06 May 2015 Premiums written in billion RMB Dramatic growth of insurance market 2,500 Direct premium written

More information

No boom, (probably) no bust

No boom, (probably) no bust No boom, (probably) no bust Global Economic & Market Outlook Riga May 10, 2016 Harald Magnus Andreassen +47 23 23 82 60 hma@swedbank.no The global economy: Growth is normal 3 OK, growth in rich countries

More information

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015

Why 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 information

Glovista Global Perspectives

Glovista Global Perspectives Issue 65 May/15 Monthly Newsletter for Global Investors Glovista Global Perspectives This issue : S&P Sector Performance P.2 Ccy and Cmdty Performance P.3 Important Interest Rates P.4 Carlos Asilis, Ph.D.

More information

How Smaller Stocks May Offer Larger Returns

How 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 information

Quarterly Asset Class Report Institutional Fixed Income

Quarterly Asset Class Report Institutional Fixed Income Quarterly Asset Class Report Institutional Presentation To: Presented By: canterburyconsulting.com September 30, 015 Role in the Canterbury Consulting recommends and communicates asset-class strategy with

More information

Invesco Variable Insurance Fund. Invesco V.I. Balanced-Risk Allocation Fund A balanced approach

Invesco Variable Insurance Fund. Invesco V.I. Balanced-Risk Allocation Fund A balanced approach Invesco Variable Insurance Fund Invesco V.I. Balanced-Risk Allocation Fund A balanced approach Management team Invesco V.I. Balanced-Risk Allocation Fund is managed by the Invesco Global Asset Allocation

More information

Exchange Traded Funds Tactical Asset Allocation Tools

Exchange Traded Funds Tactical Asset Allocation Tools Exchange Traded Funds Tactical Asset Allocation Tools Eleanor De Freitas, Catherine Barker 1 Barclays Global Investors Exchange traded funds (ETFs), combine the advantages of both index funds and stocks.

More information

Institutional Investor Asset Management in a Low Return/High Risk World

Institutional Investor Asset Management in a Low Return/High Risk World Institutional Investor Asset Management in a Low Return/High Risk World Dr. Eliot Kalter President, E M Strategies Senior Fellow, The Fletcher School EKalter@EMStrategies.com Executive Summary I. Global

More information

Monthly Report for Last Atlantis Partners LLC Share Classes November, 2008

Monthly Report for Last Atlantis Partners LLC Share Classes November, 2008 Monthly Report for Last Atlantis Partners LLC Share Classes November, 2008 Performance Summary Below are summary performance numbers for Last Atlantis Partners, LLC share classes. To download detailed

More information

Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients

Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients www.mce-ama.com/2396 Senior Managers Days 4 www.mce-ama.com 1 WHY attend this programme? This

More information

Mackenzie Private Wealth Counsel

Mackenzie Private Wealth Counsel Mackenzie Private Wealth Counsel Q1 216 Review Opportunities in a Challenging Macro Environment Todd Mattina, Chief Economist and Strategist, Mackenzie Asset Allocation Team Following one of the rockiest

More information

Making the Case for International Small-Cap Stocks

Making the Case for International Small-Cap Stocks February 2015 Making the Case for International Small-Cap Stocks Although the U.S. economy has continued to outpace many of its global peers, investors may want to consider buying international Mark A.

More information

Opportunities in Emerging Market Corporate Debt

Opportunities 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 information

The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong

The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong Investment Insights The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong Kevin Lorenz, CFA, Managing Director, Lead Portfolio Manager of TIAA-CREF's High-Yield Fund

More information

Pioneer Bond Fund. Performance Analysis & Commentary September 2015. Fund Ticker Symbols: PIOBX (Class A); PICYX (Class Y) us.pioneerinvestments.

Pioneer Bond Fund. Performance Analysis & Commentary September 2015. Fund Ticker Symbols: PIOBX (Class A); PICYX (Class Y) us.pioneerinvestments. Pioneer Bond Fund COMMENTARY Performance Analysis & Commentary September 2015 Fund Ticker Symbols: PIOBX (Class A); PICYX (Class Y) us.pioneerinvestments.com Third Quarter Review Pioneer Bond Fund s Class

More information

A closer look at today s target date fund landscape

A closer look at today s target date fund landscape A closer look at today s target date fund landscape DC Investment Forum Toronto, Ontario September 26, 2014 Chhad Aul, CFA Portfolio Manager Sun Life Global Investments 1 ADVISOR USE ONLY Today s agenda

More information

Diversify your wealth internationally

Diversify your wealth internationally ab UBS Swiss Financial Advisers Diversify your wealth internationally UBS Swiss Financial Advisers offers US investors a safe, easy and tax-compliant way to diversify their assets abroad. Contents 3 Why

More information

www.fa-mag.com www.pw-mag.com PRESENTED BY 1

www.fa-mag.com www.pw-mag.com PRESENTED BY 1 www.fa-mag.com www.pw-mag.com 1 Confronting Market Volatility: Help Clients Weather The Market's Ups And Downs Mark E. Carver, CIMA March 25, 2015 How is BlackRock defining Smart Beta? An evolution in

More information

ISBANK EARNINGS PRESENTATION 2016 Q1

ISBANK EARNINGS PRESENTATION 2016 Q1 ISBANK EARNINGS PRESENTATION 2016 Q1 2016 Q1 Recent Developments in the Economy Binler Global Outlook Main Indicators of Turkey US EA Moderate expansion in the US economy Solid labor market data Still

More information

r a t her t han a s a f e haven

r a t her t han a s a f e haven r a t her t han a s a f e haven For Professional Advisers only - not for onward distribution Investors exposure to gold continues to grow but we believe that more consideration of the risks is needed.

More information