Will robots replace fund selectors?
Using algorithms may help fund selectors choose products more efficiently, but human judgment is still key in choosing the right fund products.
Analysis
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Euro weakens slightly as ECB remains in easing mode
As expected, the European Central Bank (ECB) kept rates on hold on Thursday. Hawks’ hopes the ECB may hint on monetary policy tightening were disappointed. But there was a change of tone in ECB-president Mario Draghi’s words.
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ANALYSIS: Harness ‘animal spirits’ for investment success
Not being a student of Keynesian theory, I’ve been somewhat confused by the oft mentioned revival in ‘animal spirits’. Rather than bulls and bears, investors should beware the headless chickens.
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ANALYSIS: Go for gold amid political chaos and reinflation
Rising inflation, the US missile attack on Syria and new tensions with Iran, North Korea and Russia have all helped to bring gold into play in recent weeks.
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ANALYSIS: Is M&A a raw deal for asset managers?
The ‘squeeze’ on asset managers’ balance sheets is well known, while recent deals in the sector have failed to cheer shareholders, but there are nonetheless pointers to the industry’s future winners.
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Don’t forget about base currency risk
Standard practice among investors is to hedge away foreign currency risk in fixed-income portfolios. But that could increase another sort of currency risk that is often missed.
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ANALYSIS: Markets shrug off May’s Article 50 notification – are they right?
Theresa May is picking an early fight with EU leaders in her letter in which she formally announced the start of the UK’s Brexit process. Bond, equity and currency markets hardly responded. But perhaps they should have.
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Give Brits the option to remain European citizens post-Brexit, says Verhofstadt
Article 50 has now been triggered, and the UK will leave the European Union in two years time. But Brexit shouldn’t result in UK citizens losing their European citizenship against their will, said the European Parliament’s chief Brexit negotiator Guy Verhofstadt.
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‘Brexometer’ stormy as global executives forecast fall in profits
Law firm Hogan Lovells found that two thirds of respondents in its ‘Brexometer’ survey believe Brexit will reduce their profitability over the next five years.
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ANALYSIS: Fixed maturity funds – Has the opportunity passed?
2016 saw some highly successful launches of fixed maturity bond funds as investors took the opportunity to lock in attractive yields combined with reduced duration risk. But are such products still worth buying now, with credit spreads having sunk below their long-time average?
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How low can sterling go?
Sterling took another pounding on Tuesday morning after the UK Parliament approved the Article 50 bill – but with at least two years of negotiations ahead, could the currency fall even further?
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No basis for hawkish turn as ECB holds firm
A meeting of the European Central Bank heralded few surprises on Thursday, but added fuel to speculation QE will continue past 2017,albeit in a tempered fashion.