Only being a specialist in one specific area will give absolute return fund managers the edge to extract alpha, believes Lucas Strojny, head of fund selection at Advenis Investment Managers in Paris. And there is one such specialised fund the Frenchman particularly likes.
Net inflows into Japanese equity funds have reached their highest level in 20 months, according to Morningstar fund flows data. Multi-asset and absolute return funds are also seeing an increase in interest.
Mercer’s Amit Popat explains the firm’s fund manager selection process and discusses what strategies he’s recommending to clients in the low rate environment.
Emerging market debt has seen a lot of inflows from European investors of late even though spreads have compressed considerably. Is this a sign you should look for the exit now, or is the long-term story for the asset class still intact?
During the week Theresa May formally triggered the start of the process that will take the UK out of the European Union, UK equity sentiment hit another record low. Return expectations for US equities also fell into negative territory.
Investors in Finland have increased their allocations to emerging market debt and high-yield bonds in an effort to maintain yields. Though spreads have compressed below their long-term average, they feel forced to maintain, or even increase their allocations.
BlackRock has revealed a major shake-up of its US active equity platform including job cuts and a reorganisation of funds.
Economics will trump politics as the main driving factor for equities this year, Finland’s fund buyers believe. And European equities are the place to be.
Emerging markets are back. EM equities and debt were among the most popular asset classes with European investors in February, according to fresh Morningstar data. Developed market equity flows, however, took a surprising turn.
Emerging market equities have seen strong outflows over the past three and five year-periods. But all of these redemptions can be attributed to regional EM funds.
Record-low bond yields have sent both institutional and retail investors in search of alternative credit options for their portfolios. They have tried absolute return funds, mainly with underwhelming results. Some are therefore proving their luck elsewhere in the fixed income spectrum.
Equity funds suffered their first annual weekly outflows from US investors since the election of Donald Trump, according to Lipper fund flows data.
