Matthias Hoppe – The risk factor
Franklin Templeton Solutions vice-president Matthias Hoppe drills down on the risks and rewards of asset classes and the importance of diversification.
Investment
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ETF investors face hangover after 2015 binge buying
European equity ETFs saw record inflows in 2015, according to Morningstar data. However, it has now turned out ETF investors only joined the party once the happy hour was over. Investors who put their money into a MSCI Europe ETF a year ago are now having to cope with a loss of 12.4%.
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When banks bleed, everybody feels the pain
There were many lessons to be learnt from the financial crisis in the latter part of 2008 and we have been given a timely reminder of one of the biggest.
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India’s rise highlights China’s challenges
India overtook China as the world’s fastest growing major economy on Monday, leading some asset allocators to suggest it might be time to put China allocations on hold and opt for India instead.
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Fed rate hikes will drive down long-term returns – Credit Suisse
Credit Suisse has released a report which forecasts real equity returns will be limited to 4-6% over the next ten years and real bond returns will be close to zero. These predictions are in line with those of fund selectors.
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Catalan fund buyers brace for next market correction
The start of the year has been rough for equity markets, but investors in Barcelona expect another market plunge before summer. They are also hedging their bets politically, it seems, as the uncertain investment outlook has prompted many to drop their support for independence.
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Emerging market outflows concentrated in Asia
The €1bn of net outflows from emerging market equity funds in December brought 2015’s total redemptions from the asset class to €36.3bn. Though emerging markets elsewhere were affected most heavily by the commodity price slump, Asia was suffering the biggest blows in 2015.
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Beware China’s rapidly diminishing cash pile
The ‘humiliation’ of emerging markets, particularly China, is currently at an extreme says Bank of America Merrill Lynch.
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Portuguese investors replace bonds with absolute return
Portugal’s fund selectors are switching part of their bond allocations to absolute return funds. They now have between 10% and 15% of their portfolios allocated to absolute return, and that share is rising.
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Who predicted January’s market slump?
Dutch and Swedish fund buyers predicted the equity market correction that shook investors in January. Their peers from Denmark and Belgium, however, need to polish their crystal balls.
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Up to 15% of Ucits equity funds are index huggers, says Esma
Between 5 and 15% of active Ucits equity funds could be index huggers, the European financial services regulator Esma has concluded after it analysed the performance of a set of 2600 of such funds compared to their benchmarks, for the period 2012-2014. This is strong enough evidence for the regulator to take further action, said…
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Asset managers keep faith in European equities
The bears have gone back into hibernation, and European equities will return in excess of 5% in the remainder of the year. That’s the almost unanimous opinion of international asset managers.