Conclusions from the Allianz Global Investors Investment Forum

Size: px
Start display at page:

Download "Conclusions from the Allianz Global Investors Investment Forum"

Transcription

1 Conclusions from the Allianz Global Investors Investment Forum Investment Forum New York, September 2015 At our most recent semi-annual Investment Forum, we reviewed the key hypotheses of our strategic investment advice for our clients and left our primary conclusions unchanged. Andreas E. F. Utermann Global CIO of Allianz Global Investors Analysing the global economy and how long financial repression will last Monetary policy remains very accommodative, with Europe and Japan in full quantitative easing mode and many other central banks, except the US Federal Reserve and Bank of England, reducing interest rates through the year to protect their local economic growth prospects. Volatility has returned to currency markets as monetary policy has evolved, starting in January with the Swiss allowing the peg to the euro to collapse; investors now fear voluntary and involuntary devaluations across developed and emerging economies. China s decision to devalue the Renminbi (RMB) via its new currency regime, has greatly unsettled investors, creating even more volatility. Low and sustained financing costs have led to more leverage being assumed around the world, especially by emerging-market sovereigns and by corporations. Indeed, the world owes USD 50 trillion more than it did in 2008, at the height of the global financial crisis. Current levels of debt and the general lack of deleveraging allow us to conclude that trend growth will be considerably lower than in the past and also more fragile. Global imbalances have indeed narrowed, but they have not disappeared. Reading between the lines, however, we find that trading surpluses are being maintained by falling imports rather than growthfriendly exports, and that in Europe in particular is seeing a re-emergence of huge capital account surpluses as austerity takes effect. Gross fixed capital formation is being generated in China and the emerging markets, leaving the older, more mature economies underinvesting at government and corporate levels; this is frustrating monetary and fiscal policies that aim to kick-start local growth and employment. With lower nominal trend growth despite the benefits of the collapse in commodity prices, and lower investment levels we also find that productivity is declining globally in the face of disruptive and increasingly mobile new technologies and services. Capital expenditures, now in sharp decline in the commodity industries, represent more than 60 per cent of all investments globally. Rising currency volatility and devaluations display a lack of global co-ordination. This results in growing

2 Executive Summary Understand Financial repression remains in place Monetary policy globally will remain lower for longer Low and possibly fragile economic growth Global debt levels remain high and will increase The political landscape around the world is changing Geopolitical risk has risen in Europe and the Middle East Cheap beta now offers no returns in fixed income and equities Income investing works in financial repression Some risk-taking is needed to earn a return Act Protecting purchasing power is crucial The hunt for income is undiminished With China rebalancing, low growth will persist With no deleveraging, excess capacity is deflationary Policies remain uncertain, regulations are increasing Prepare for uncertainty and volatility Alpha is even more important for generating returns Dividend income has become a major driver of returns With volatility rising in all asset classes, investors must be active Across all asset classes, we must advise our clients to take risk in order to meet their investment objectives. With our financial repression thesis even more valid now as investors face a lowgrowth, low-interest-rate environment with rising political and market volatility, Allianz Global Investors believes passionately in investing actively in security selection and asset allocation to generate the returns that cheap beta will be unable to deliver. Income from attractive equity and credit investments will offer less volatile returns to investors, as will income derived from less liquid, uncorrelated infrastructure and other long-duration securities. Regulations will continue to challenge investment returns, and AllianzGI remains committed to evolving our investment solutions to meet our clients future needs. Andreas Utermann, Global CIO concerns that the world is facing growing trade and currency wars, as economies seek to borrow growth from others, instead of stimulating growth from economies with high current account surpluses. However, these policies are clearly, at the global level, not lifting growth rates substantially and certainly not to the levels seen in previous recoveries. Our hypothesis of sustained financial repression remains valid and, without new avenues and policies for economic growth, we expect it to remain in place for many years to come leaving a lowgrowth, low-interest-rate and fragile economic environment. Stefan Hofrichter, Global Head of Economics & Strategies Equity valuations during financial repression There are many ways in which one can value equities, ranging from dividend discount models to dividend and earnings yields and longer-term Shiller PEs. Almost all valuation tools assume reversion to a mean over time, which has been distorted greatly by the quantitative easing and zero-interest-rate policies (ZIRP) in effect around the world. In advising our clients to take risk, we are working to assess the discount rate that the market is using to value equities so we can ensure that we are taking the right level of risk. While the current spectre of deflation is unsettling investors, we remain confident that if the estimated peak of interest rates in this cycle is lower than previous peaks, then equities will continue to look attractive and can re-rate in valuation terms as well as offer earnings growth combined with attractive growing dividend-income streams. It is right to be concerned that a ZIRP world can promote mal-investment and create excessive valuations. However, using our fundamental research and strong investment philosophies and processes, AllianzGI can add the alpha that investors need while controlling the volatility that they dislike. Steve Berexa, Global Head of Research & Global CIO Equity 2

3 Solutions for liability-driven investors Insurance and pension investors continue to face the prospect of resolving their funding gaps using a wait-and-hope strategy, large immunising cash injections, the strategic addition of more asset allocation or measured risk-taking on a dynamic basis. AllianzGI offers two solutions to both definedbenefit and defined-contribution markets that allow clients to optimise their balance of returns against funding risks. Insurance companies themselves face the prospect of their potential returns being crushed by the twin challenges of Solvency II and the ZIRP environment. Accordingly, AllianzGI is advising our clients to reduce exposures to capital-intensive business lines and seek more diversified, less capital-heavy investment returns. Interestingly, insurance companies have been early adopters in the hunt for yield, embracing illiquidity and more risk even as they are hindered by a low supply of infrastructure-type assets. Regulation has become pro-cyclical and created a herding effect toward certain asset classes which represents another arrow in the financial repression quiver. We advise our clients to shift their exposure toward growth-oriented insurance markets in Asia as well as toward corporations with innovative new product lines. Regulation is driving investors toward certain types of asset class and risk orientations that may not always meet their longer objectives. Our consultative relationship process can help our clients become more flexible and dynamic in reassessing their investment opportunities. Arun Ratra, Head of Global Solutions Shale oil and its global ramifications Global demand growth changes have affected both the volume and value of oil over the last year or so; this was then exacerbated by Saudi Arabia s geopolitical response to the growth of US shale oil and increased production by other regions. Industry investment is now collapsing globally, which has not yet been reflected in market oil prices in light of the oncoming supply from Iran, Iraq and Saudi Arabia. However, new industry management teams are imposing strict investment criteria that will significantly affect the oil service and industrial sectors; in addition, tighter lending criteria, especially in the US after the fall in prices, will lessen enthusiasm and the ability to develop more shale prospects there. As a result, although demand has flattened out, the world is not replacing the 2 million to 3 million barrels of oil a day that are being lost through the depletion of existing fields. Moreover, with geo-political risks in the Middle East at very high levels, we remain concerned that an accident could occur there any day, which would affect regional production. While industry dynamics remain fraught with uncertainty over demand, production and politics, it is becoming clear that the prognosis for oil is not as apocalyptic as the current oil price suggests. In a financially repressed world, many oil stocks offer an attractive combination of low valuations, extensive self-help abilities and high dividend yields. Scott Migliori, CIO Equity US Developments in asset management The asset-management landscape is experiencing rapid change as regulation affects the industry, its distributors and banks and, most importantly, our clients. Much of this was anticipated in our meme of financial repression. However, the growing demand for transparency, the increasing need for better-aligned fee structures and shifting thoughts on achieving returns are all now coursing through the industry. Beta has now become essentially free, and investors have been focusing on costs not alpha as the markets have delivered positive returns. Yet we believe passionately that from now on, beta will become not only more volatile, but it will not necessarily be positive. This means that investors will need to accept more risk and look for alpha as a larger component of total return. Moreover, 3

4 new regulations and ongoing financial repression may dissuade many investors, including insurance companies and LDI-constrained companies, from taking sufficient risk. That is why AllianzGI has developed a range of new investment solutions to meet our clients evolving needs, including unconstrained strategies, absolute-return ideas that access strong alpha signals, factor-investing strategies and skilled risk management. We are increasingly confident that AllianzGI s focus on sharpening our active offering, and on driving strategic reviews of and changes to many of our investment processes and solutions, are in tune with our clients evolving needs. With beta both free and increasingly volatile, the stage has been set for us to deliver high-quality and sustainable alpha to our clients in order to meet their challenging investment objectives. Andreas Utermann, Global CIO Monitoring risk with a focus on liquidity Our most recent Risk Monitor study AllianzGI s annual survey of institutional investors highlighted the top concerns of today s investors. Many of our clients are increasingly worried about the rising risks presented by geo-politics and asset bubbles, fuelled by perceptions that too much free money is now in the system. Investors in Asia are particularly sensitive to this. Concerns over liquidity or the threat of illiquidity which was last experienced in seem more muted, and there is a general lack of concern over generating acceptable future returns. Many risks have been found to be cyclical with the markets risk rises when returns are positive and vice versa. This natural situation has been combined with increasingly pro-cyclical regulatory policies and fundamentally altered market structures, which changed after the painful events of With markets transformed and liquidity increasingly found in index and ETF products, it is not obvious where the buyer of last resort may be for many asset classes. Alpha remains scarce but expensive and risk management relies on diversification, where cost management is vital. Investors see tail-risk events as more worrying than the dangers of illiquidity. As a result, we must help our clients navigate these waters to find return at acceptable levels of risk. Kristina Hooper, US Investment Strategist Conclusions from our Global Policy Council Throughout the Investment Forum, the Global Policy Council (GPC) our team of CIOs and economists discussed a wide range of issues, paying special attention to the prospects for China and other emerging economies. GPC members focused on the outlook for oil and other commodities, which are so important to many emerging economies, and recognised that the global economy s prospects still seem moderately decent. At the same time, flows into most markets have become negative and uncertainty around US Federal Reserve policy may be limiting leverage and risk appetites. Equity valuations continue to make Europe look more attractive than the US and Japan, and while emerging markets are cheap, they are not yet cheap enough. The GPC s preference for emerging-market debt has been challenged and will be dynamically reviewed during the fourth quarter. All sovereign bonds are unattractive. Next Investment Forum: Hong Kong, 13 January 2016 Imprint Allianz Global Investors GmbH Bockenheimer Landstr Frankfurt am Main Global Capital Markets & Thematic Research Hans-Jörg Naumer (hjn), Ann-Katrin Petersen (akp), Stefan Scheurer (st) Allianz Global Investors / AllianzGI_VIEW Data origin if not otherwise noted: Thomson Financial Datastream. Calendar date of data if not otherwise noted: September

5 Further Publications of Global Capital Markets & Thematic Research Active Management It s the economy, stupid! The Changing Nature of Equity Markets and the Need for More Active Management Harvesting risk premium in equity investing Active Management Alternatives Volatility as an Asset Class Financial Repression Shrinking mountains of debt QE Monitor Between a flood of liquidity and a drought on the government bond markets Liquidity The Underestimated Risk Macroprudential policy necessary, but not a panacea Capital Accumulation Riskmanagement Multi Asset Smart risk with multi-asset solutions Sustainably accumulating wealth and capital income Strategic Asset Allocation in Times of Financial Repression Behavioral Finance Behavioral Risk Outsmart yourself! Reining in Lack of Investor Discipline: The Ulysses Strategy Behavioral Finance Two Minds at work Behavioral Finance and the Post-Retirement Crisis Strategy and Investment Equities the new safe option for portfolios? Dividends instead of low interest rates QE A starting signal for euro area investments? Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted. This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations. This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC); Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No Z]; and Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator; Allianz Global Investors Korea Ltd., licensed by the Korea Financial Services Commission; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.

Bonds. Valuation and Measures of Sensitivity

Bonds. Valuation and Measures of Sensitivity Bonds Valuation and Measures of Sensitivity Maturity management is essential, especially if a risk profile is asymmetric, as is typically the case when interest rates are low. Hans-Jörg Naumer Global Head

More information

Financial Repression: A Driving Force for Mergers and Acquisitions?

Financial 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 information

Benefiting from Merger Arbitrage

Benefiting from Merger Arbitrage Benefiting from Merger Arbitrage Alternatives Dr Tim Wooge Senior Product Developer Liquid Alternatives Allianz Global Investors Risk diversification with conventional assets has become increasingly difficult

More information

Active Management in Fixed Income: Conviction is Key

Active Management in Fixed Income: Conviction is Key Active Management in Fixed Income: Conviction is Key Active Management Central banks seem likely to remain accommodative and keep monetary policy rates lower for a while to come. Consequently, real policy

More information

Bond strategies Behind or in front of the curve?

Bond strategies Behind or in front of the curve? Bonds Bond strategies Behind or in front of the curve? Understand. Act. 2 Bonds Content 4 On the curve 5 In front of the curve 7 The curve in motion 7 Government bond strategies 9 Spread strategies Imprint

More information

Be ACTive: Agile, Confident, Thorough

Be ACTive: Agile, Confident, Thorough Be ACTive: Agile, Confident, Thorough Investment Forum Hong Kong, January 2016 At our most recent semi-annual Investment Forum, held in Hong Kong in January 2016, we reviewed the key strategic issues present

More information

2016 Outlook: Volatility Ahead

2016 Outlook: Volatility Ahead 12 Volume 7, Issue 12 Allianz Global Investors Insights December 2015 Global View 2016 Outlook: Volatility Ahead The opportunities and risks on the horizon for 2016 are similar to those that emerged in

More information

Duration Risk: Anatomy of (modern) bond bear markets

Duration Risk: Anatomy of (modern) bond bear markets Risk. Management. Reward. Duration Risk: Anatomy of (modern) bond bear markets Historical lessons for today s bond management (Part1: Introduction) Understand. Act. 2 Duration Risk: Anatomy of (modern)

More information

High-yield corporate bonds

High-yield corporate bonds Analysis & Trends: High-yield corporate bonds Higher bond yields with reasonable credit risk Understand. Act. Analysis & Trends Decisive Insights for forwardlooking investment strategies 2 Analysis & Trends

More information

Global Strategic Outlook

Global Strategic Outlook Allianz Global Investors Global Strategic Outlook Q4 2015 Understand. Act. ContentQui leno suspicor Amor quibus mido Consido noster luvabrum 8 Section one: Thematic piece 13 Section two: Equities outlook

More information

QE A starting signal for euro area investments?

QE A starting signal for euro area investments? QE A starting signal for euro area investments? Strategy & Investment The European Central Bank (ECB) has delivered and the attention of investors seems increasingly to be directed towards the old continent.

More information

Oil-Price Drop Boosts Growth, Especially in Europe

Oil-Price Drop Boosts Growth, Especially in Europe 3 Volume 7, Issue 3 Allianz Global Investors Insights March 2015 Global View Oil-Price Drop Boosts Growth, Especially in Europe The oil price has roughly halved since last summer. Which markets will benefit

More information

Odysseus-Strategie. of the Global Economy

Odysseus-Strategie. of the Global Economy Behavioral Analysis & Trends Finance in Aktion Überliste Infrastructure Dich Selbst: The Backbone Die Odysseus-Strategie of the Global Economy PortfolioPraxis: Akademie 2 Analysis & Trends Content 4 Infrastructure

More information

Bonds. Corporate. Bonds. Understand. Act.

Bonds. Corporate. Bonds. Understand. Act. Bonds Corporate Bonds Understand. Act. Analysen & Trends Decisive Insights for forwardlooking investment strategies 2 Content 4 Corporate Bonds 5 Corporate Credit 6 Corporate Credit Value Drivers 12 Change

More information

Historical lessons from Federal Reserve rate-hike cycles

Historical lessons from Federal Reserve rate-hike cycles Investment Forum Historical lessons from Federal Reserve rate-hike cycles Martin Hochstein, CFA Senior Strategist Macro / Fixed Income Allianz Global Investors Discussions about the timing and magnitude

More information

Paying Heed to Politics, Doom Loops and Bubbles

Paying Heed to Politics, Doom Loops and Bubbles 5 Volume 7, Issue 5 Allianz Global Investors Insights May 2015 Global View Paying Heed to Politics, Doom Loops and Bubbles The ongoing rise in asset prices which was both predictable and predicted continues

More information

Understanding Fixed Income

Understanding 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 information

Xetra. The market. Xetra: Europe s largest trading platform for ETFs. ETF. One transaction is all you need.

Xetra. The market. Xetra: Europe s largest trading platform for ETFs. ETF. One transaction is all you need. Xetra. The market. Xetra: Europe s largest trading platform for ETFs ETF. One transaction is all you need. Deutsche Börse Group is the leading global service provider to the securities industry. Its cutting-edge

More information

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA Foreign Exchange Investments Discover the World of Currencies Credit Suisse Securities (USA) llc Private Banking USA 2 Foreign exchange: There s no ignoring the largest market in the world. Introduction

More information

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong

ABF 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 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

Japanese bonds in a negative interest rate environment

Japanese bonds in a negative interest rate environment Japanese bonds in a negative interest rate environment On January 29, 2016, the Bank of Japan (BoJ) introduced "Quantitative and Qualitative Monetary Easing with Negative Interest Rate". The decision initiated

More information

2015Q1 INVESTMENT OUTLOOK

2015Q1 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 information

Crafting a Forward Looking Investment Portfolio

Crafting 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 information

Best Styles: Harvesting Risk Premium in Equity Investing

Best Styles: Harvesting Risk Premium in Equity Investing Strategy Best Styles: Harvesting Risk Premium in Equity Investing Harvesting risk premiums is a common investment strategy in fixed income or foreign exchange investing. In equity investing it is still

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

The Return of Saving

The Return of Saving Martin Feldstein the u.s. savings rate and the global economy The savings rate of American households has been declining for more than a decade and recently turned negative. This decrease has dramatically

More information

Outperforming the Low-Yield Environment

Outperforming the Low-Yield Environment 2 Volume 7, Issue 2 Allianz Global Investors Insights February 2015 Global View Outperforming the Low-Yield Environment At our Hong Kong Investment Forum three years ago, we identified financial repression

More information

Credit Suisse Asset Management Headline Ideas 2015 Dividends An Important Source of Income When Interest Rates Are Low. For qualified investors only

Credit Suisse Asset Management Headline Ideas 2015 Dividends An Important Source of Income When Interest Rates Are Low. For qualified investors only Credit Suisse Asset Headline Ideas 2015 Dividends An Important Source of Income When Interest Rates Are Low For qualified investors only Dividends An Important Source of Income When Interest Rates Are

More information

Global Investment Trends Survey May 2015. A study into global investment trends and saver intentions in 2015

Global 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 information

HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund )

HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund ) PRODUCT KEY FACTS HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund ) Issuer: HFT Investment Management (HK) Limited April 2015 This statement provides you with key

More information

Consolidated Quarterly Report of Baader Bank AG as at 31.03.2015

Consolidated Quarterly Report of Baader Bank AG as at 31.03.2015 Consolidated Quarterly Report of Baader Bank AG as at 31.03.2015 OVERVIEW OF KEY FIGURES RESULTS OF OPERATIONS Q1 2015 Q1 2014 Change in % Net interest income EUR thousand -95 869 >-100.0 Current income

More information

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument Featured Solution May 2015 Your Global Investment Authority The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument In today s low yield environment, an active investment

More information

Explore the Field of Mutual Funds

Explore the Field of Mutual Funds Wealth Management Education Series How can we help you further? Do you have a question on what you have just read? Would you like to have a further discussion on this subject? Contact your Relationship

More information

Effective downside risk management

Effective downside risk management Effective downside risk management Aymeric Forest, Fund Manager, Multi-Asset Investments November 2012 Since 2008, the desire to avoid significant portfolio losses has, more than ever, been at the front

More information

CIO Flash Chinese equities: what happens next? July 8, 2015

CIO Flash Chinese equities: what happens next? July 8, 2015 CIO Flash Chinese equities: what happens next? July 8, 2015 +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH Market falls force

More information

Ten reasons to be invested in European Listed Real Estate

Ten reasons to be invested in European Listed Real Estate Ten reasons to be invested in European Listed Real Estate Executive Summary At Petercam Institutional Asset, we are convinced that investing part of one s assets in European listed real estate makes sense.

More information

Wealth Management Education Series. Explore the Field of Mutual Funds

Wealth Management Education Series. Explore the Field of Mutual Funds Wealth Management Education Series Explore the Field of Mutual Funds Wealth Management Education Series Explore the Field of Mutual Funds Managing your wealth well is like tending a beautiful formal garden

More information

18 ECB STYLISED FACTS OF MONEY AND CREDIT OVER THE BUSINESS CYCLE

18 ECB STYLISED FACTS OF MONEY AND CREDIT OVER THE BUSINESS CYCLE Box 1 STYLISED FACTS OF MONEY AND CREDIT OVER THE BUSINESS CYCLE Over the past three decades, the growth rates of MFI loans to the private sector and the narrow monetary aggregate M1 have displayed relatively

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

Time To Be Long Alpha

Time To Be Long Alpha 07 Volume 6, Issue 7 Allianz Global Investors Insights July 2014 Global View Time To Be Long Alpha Asset-class returns for the first half of 2014 have been surprisingly strong, given the continued lacklustre

More information

CIO Flash Chinese equities: what happens next? July 8, 2015

CIO Flash Chinese equities: what happens next? July 8, 2015 CIO Flash Chinese equities: what happens next? July 8, 2015 +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH Market falls force

More information

Funding Pension Liabilities Is Becoming a Key Area of Corporate Finance Focus

Funding Pension Liabilities Is Becoming a Key Area of Corporate Finance Focus Pensions Management Funding Pension Liabilities Is Becoming a Key Area of Corporate Finance Focus In recent years, managing pension liability risk has increasingly featured on the agendas of CFOs. AUTHORS:

More information

November 2012. Figure 1: New issuance (US$ billion) presents attractive opportunities

November 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 information

The Credit Crisis: A Monetary Explanation

The 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 information

Why Strategic Bond funds are failing investors

Why Strategic Bond funds are failing investors Why Strategic Bond funds are failing investors March 2016 For Professional Investors only The rise of Strategic Bonds The IA Sterling Strategic Bond sector was launched to much fanfare in 2008. The birth

More information

Highlights from the OECD Sovereign Borrowing Outlook N 4 *

Highlights from the OECD Sovereign Borrowing Outlook N 4 * Highlights from the OECD Sovereign Borrowing Outlook N 4 * by Hans J. Blommestein, Ahmet Keskinler and Perla Ibarlucea Flores ** Abstract OECD governments are facing unprecedented challenges in the markets

More information

Trading FX Options Getting the Big Picture Right Anticipating Event Risk Identifying Catalysts Expressing the View

Trading FX Options Getting the Big Picture Right Anticipating Event Risk Identifying Catalysts Expressing the View Trading FX Options Getting the Big Picture Right Anticipating Event Risk Identifying Catalysts Expressing the View By: Bryan Rich Founder FXTraderProfessional.com Copyright 2014 Logic Fund Management,

More information

ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of

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

Diversified Managed Allocations

Diversified Managed Allocations Diversified Managed Allocations Multi-strategy portfolios with a focus on flexibility Is this program right for you? DMA is designed for investors who: Want experienced, professional money managers to

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 Evolution of High- Yield Bonds into a Vital Asset Class

The Evolution of High- Yield Bonds into a Vital Asset Class The Evolution of High- Yield Bonds into a Vital Asset Class High-yield bonds have turned into a legitimate asset class that is larger, better established and less risky than in years past. Understand.

More information

The Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund.

The Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund. The Pinnacle Funds Simplified Prospectus December 11, 2009 Class A and Class F units and Class I units where noted Money Market Fund Pinnacle Short Term Income Fund Bond Funds Pinnacle Income Fund Pinnacle

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

How Hedging Can Substantially Reduce Foreign Stock Currency Risk

How Hedging Can Substantially Reduce Foreign Stock Currency Risk Possible losses from changes in currency exchange rates are a risk of investing unhedged in foreign stocks. While a stock may perform well on the London Stock Exchange, if the British pound declines against

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

Master Limited Partnerships (MLPs):

Master Limited Partnerships (MLPs): Master Limited Partnerships (MLPs): Frequently Asked Questions Yorkville Capital Management LLC www.yorkvillecapital.com 950 Third Avenue, 23 rd Floor New York, NY 10022 (212) 755-1970 Table of Contents

More information

Glossary of Investment Terms

Glossary of Investment Terms online report consulting group Glossary of Investment Terms glossary of terms actively managed investment Relies on the expertise of a portfolio manager to choose the investment s holdings in an attempt

More information

The Banking Union in a Nutshell

The Banking Union in a Nutshell The Banking Union in a Nutshell EMU Ann-Katrin Petersen Assistant Vice President Allianz Global Investors The European financial landscape is about to undergo a total facelift. On 15 April 2014 just in

More information

to Wealth Management resources of one of the world s largest financial services firms. The Caribbean Group

to Wealth Management resources of one of the world s largest financial services firms. The Caribbean Group A Defined Approach to Wealth Management Giving UWI access to the combined resources of one of the world s largest financial services firms. The Caribbean Group The information in this presentation is intended

More information

Wealth Management Education Series. Explore the Field of Investment Funds

Wealth Management Education Series. Explore the Field of Investment Funds Wealth Management Education Series Explore the Field of Investment Funds Wealth Management Education Series Explore the Field of Investment Funds Managing your wealth well is like tending a beautiful formal

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

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

Xetra. The market. Xetra: Europe s largest trading. ETF. One transaction is all you need.

Xetra. The market. Xetra: Europe s largest trading. ETF. One transaction is all you need. Xetra. The market. Xetra: Europe s largest trading platform for ETFs ETF. One transaction is all you need. 2 3 Deutsche Börse Group is the leading global service provider to the securities industry. Its

More information

SUMMARY PROSPECTUS. TCW Emerging Markets Multi-Asset Opportunities Fund FEBRUARY 29 I SHARE: TGMAX N SHARE: TGMEX

SUMMARY PROSPECTUS. TCW Emerging Markets Multi-Asset Opportunities Fund FEBRUARY 29 I SHARE: TGMAX N SHARE: TGMEX TCW Emerging Markets Multi-Asset Opportunities Fund I SHARE: TGMAX N SHARE: TGMEX 20 6 FEBRUARY 29 SUMMARY PROSPECTUS Before you invest, you may want to review the Fund s Prospectus which contain more

More information

S&P 500 outlook: Close to peak for 2015

S&P 500 outlook: Close to peak for 2015 S&P 500 outlook: Close to peak for 2015 August 12, 2015 Markets and Products Analysis INVESTMENT PORTOFOLIO ANALYSIS DIVISION Important Disclaimer in page 2 1 Disclaimer Disclaimer: The information herein

More information

Successful value investing: the long term approach

Successful value investing: the long term approach Successful value investing: the long term approach Neil Walton, Head of Global Strategic Solutions, Schroders Do you have the patience to be a value investor? The long-term outperformance of a value investment

More information

Changes to the OklahomaDream 529 Plan

Changes to the OklahomaDream 529 Plan Supplement dated December 31, 2015 to Oklahoma Dream Advisor Sold 529 Program Plan Disclosure Statement for Investors Using a Financial Advisor (Classes A and C) Dated November 3, 2014 This Supplement

More information

Peter Praet: Fixed income investment of insurance companies and pension funds in a low yield but volatile environment

Peter Praet: Fixed income investment of insurance companies and pension funds in a low yield but volatile environment Peter Praet: Fixed income investment of insurance companies and pension funds in a low yield but volatile environment Speech by Mr Peter Praet, Member of the Executive Board of the European Central Bank,

More information

Asset Management Portfolio Solutions Disciplined Process. Customized Approach. Risk-Based Strategies.

Asset Management Portfolio Solutions Disciplined Process. Customized Approach. Risk-Based Strategies. INSTITUTIONAL TRUST & CUSTODY Asset Management Portfolio Solutions Disciplined Process. Customized Approach. Risk-Based Strategies. As one of the fastest growing investment managers in the nation, U.S.

More information

A Solution for Yield-Starved Insurance Companies: Dividend Equities

A Solution for Yield-Starved Insurance Companies: Dividend Equities August 2015 A Solution for Yield-Starved Insurance Companies: Dividend Equities Federal Reserve efforts to normalize monetary policy are unlikely to provide meaningful relief for yield-starved insurance

More information

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?

Investment 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 information

EIOPA Risk Dashboard March 2015 Q4 2014 data PUBLIC. EIOPA-FS-15/209 Frankfurt, 20th March 2015

EIOPA Risk Dashboard March 2015 Q4 2014 data PUBLIC. EIOPA-FS-15/209 Frankfurt, 20th March 2015 EIOPA Risk Dashboard March 2015 Q4 2014 data PUBLIC EIOPA-FS-15/209 Frankfurt, 20th March 2015 Summary The release of this EIOPA Risk Dashboard is based on 2014- Q4 indicators submitted on a best effort

More information

CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing

CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing A Challenging Environment for Investors MOVING BEYOND TRADITIONAL FIXED-INCOME INVESTING ALONE For many advisors and

More information

Global Client Group The Gateway to AWM

Global 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 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

Monetary and Financial Aspects of Issuing Public Debt Instruments in Kuwait (1)

Monetary and Financial Aspects of Issuing Public Debt Instruments in Kuwait (1) Monetary and Financial Aspects of Issuing Public Debt Instruments in Kuwait (1) I would like to thank the Faculty of Commerce for arranging this meeting, which I hope will lead to the clarification of

More information

High Yield Bonds A Primer

High Yield Bonds A Primer High Yield Bonds A Primer With our extensive history in the Canadian credit market dating back to the Income Trust period, our portfolio managers believe that there is considerable merit in including select

More information

With interest rates at historically low levels, and the U.S. economy showing continued strength,

With interest rates at historically low levels, and the U.S. economy showing continued strength, Managing Interest Rate Risk in Your Bond Holdings THE RIGHT STRATEGY MAY HELP FIXED INCOME PORTFOLIOS DURING PERIODS OF RISING INTEREST RATES. With interest rates at historically low levels, and the U.S.

More information

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Fidelity Funds Société d Investissement à Capital Variable 2a, Rue Albert Borschette B.P. 2174 L-1021 Luxembourg R.C.S. B34036 Tél: +352 250 404 (1) Fax: +352 26 38 39 38 THIS DOCUMENT IS IMPORTANT AND

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

A Checklist for a Bond Market Sell-off

A 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 information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common

More information

Credit Suisse Portfolio Solutions. Personalized strategies to help you grow, preserve, and use your wealth

Credit Suisse Portfolio Solutions. Personalized strategies to help you grow, preserve, and use your wealth Credit Suisse Portfolio Solutions Personalized strategies to help you grow, preserve, and use your wealth 1 Credit Suisse Portfolio Solutions Personalized strategies to help you grow, preserve, and use

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

Fixed Income Liquidity in a Rising Rate Environment

Fixed Income Liquidity in a Rising Rate Environment Fixed Income Liquidity in a Rising Rate Environment 2 Executive Summary Ò Fixed income market liquidity has declined, causing greater concern about prospective liquidity in a potential broad market sell-off

More information

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

Investment Strategies for Pension Funds. Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK) Investment Strategies for Pension Funds Christopher Nichols Investment Director, Multi Asset Investing Standard Life Investments (UK) Pensions need consistency but markets deliver chaos Discrete Yearly

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

LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS

LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS APRIL 2014 LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS Most economists talk about where the economy is headed it s what they do. Paying attention to economic indicators can give you an idea of

More information

Emerging Markets Access the world s emerging economies with HSBC protected investments

Emerging Markets Access the world s emerging economies with HSBC protected investments Emerging Markets Access the world s emerging economies with HSBC protected investments The new engine of global growth Home to over 80% of the world s population, emerging market countries are undergoing

More information

Exchange-traded Funds

Exchange-traded Funds Mitch Kosev and Thomas Williams* The exchange-traded fund (ETF) industry has grown strongly in a relatively short period of time, with the industry attracting greater attention as it grows in size. The

More information

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional

More information

Dynamic Diversified Growth Fund

Dynamic Diversified Growth Fund Dynamic Diversified Growth Fund with BlackRock Investment Management (UK) Limited Customer Brochure BlackRock is a truly global firm that manages assets for clients in Europe, North and South America,

More information

44 ECB STOCK MARKET DEVELOPMENTS IN THE LIGHT OF THE CURRENT LOW-YIELD ENVIRONMENT

44 ECB STOCK MARKET DEVELOPMENTS IN THE LIGHT OF THE CURRENT LOW-YIELD ENVIRONMENT Box STOCK MARKET DEVELOPMENTS IN THE LIGHT OF THE CURRENT LOW-YIELD ENVIRONMENT Stock market developments are important for the formulation of monetary policy for several reasons. First, changes in stock

More information

Figure 1: Lower volatility does not necessarily mean better returns. Asset A Asset B. Return

Figure 1: Lower volatility does not necessarily mean better returns. Asset A Asset B. Return November 21 For professional investors and advisers only. Is volatility risk? After a long period without significant market upheavals, investors might be forgiven for pushing volatility down their list

More information

Important Information about Closed-End Funds and Unit Investment Trusts

Important Information about Closed-End Funds and Unit Investment Trusts Robert W. Baird & Co. Incorporated Important Information about Closed-End Funds and Unit Investment Trusts Baird has prepared this document to help you understand the characteristics and risks associated

More information

96 97 98 99 00 01 02 03 04 05 06 07 08* FDI Portfolio Investment Other investment

96 97 98 99 00 01 02 03 04 05 06 07 08* FDI Portfolio Investment Other investment Chartbook Contact: Sebastian Becker +49 69 91-3664 Global Risk Analysis The unwinding of Yen carry trades Some empirical evidence 3 2 1-1 -2-3 -4 October 31, 28 Many years before the sub-prime crisis hit

More information

Transition risk: Rethinking investing for retirement By Tim Friederich, David Karim and Dr. Wolfgang Mader

Transition risk: Rethinking investing for retirement By Tim Friederich, David Karim and Dr. Wolfgang Mader Allianz Global Investors white paper series Transition risk: Rethinking investing for retirement By Tim Friederich, David Karim and Dr. Wolfgang Mader Executive summary Are millions of Americans, retirement-plan

More information