Investors expect equity returns to be ‘lower for longer’
Fund buyers expect returns from their equity portfolio to be significantly lower over the next five years. However, they still expect equities to outperform bonds by a considerable margin.
Investment
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Blackrock expects more QE amid macro turmoil
The only certainty for Blackrock in today’s highly uncertain world is that central banks around the world will remain dovish. In Europe, they will even print more money.
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European investors resign themselves to diminishing bond returnse
A majority of investors in every European country expect a diversified bond portfolio to return less than 2% annually, over the next five years.
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Asia-Pac fund sales beat developed markets in 2015
In 2015, net sales of regulated funds in Asia-Pacific for the first time outpaced sales in Europe and the Americas, according to data from the Investment Company Institute. Most of the sales growth came from money market funds.
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Brexit disrupts ECB QE programme
ECB president Mario Draghi conspicuously avoided the B-word when he held a speech in Portugal last week. This may well be because he has yet to find an answer to the problems the vote has thrown up with regards to the execution of the central bank’s asset purchase programme.
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Why are high-yield bonds so volatile?
High-yield bond volatility has increased markedly over the past two years, which is partly a reflection of mounting macroeconomic uncertainty. But the unprecedented pace at which money is flowing in and out of the asset class suggests there is something more to it.
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High yield bonds in sharp sell-off
As recently as April, high yield bonds registered the strongest net inflows since July 2013, the month after the taper tantrum sell-off. But fortunes for the asset class reversed sharply in May, according to Morningstar’s latest fund flows figures.
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Multi-strategy funds limit post-Brexit losses
The three largest multi-strategy funds for sale in Europe have fared better than most other absolute return funds since the UK’s shock vote to leave the EU. However, the Standard Life GARS fund continues to underperform its peers on a longer-term basis.
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Brexit tantrum has gone to script
The day after Roy Hodgson showed David Cameron a thing or two about how to resign rapidly when things have gone pear-shaped, the markets rowed back a little on their own quick reaction to an unexpected defeat.
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Investors wait for Brexit-storm to calm down
European investors are sitting on large cash piles, and are waiting for volatility to ease a bit before hunting for opportunities.
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Calm heads needed as Leave vote sends complacent markets spiralling
Markets were stunned into action on Friday morning after the UK voted narrowly to leave the European Union. Sterling slumped to its lowest level versus the dollar since 1985, safe haven assets jumped and the Nikkei fell almost 8%, while the FTSE opened 6.7% lower.
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Institutional investors hedge against Brexit
Not only wholesale investors have reduced risk in the run-up to today’s Brexit referendum. Institutional investors, who are supposed to take more long-term views, have also moved to protect their portfolios.