Benchmark 10-year bond yields in the Eurozone have more than doubled since the end of April, when they reached an all-time low. Are we now simply witnessing a correction after markets overshot in the wake of the ECB’s bond-buying programme, or is this the beginning of a serious bond bear market as deflation worries have…
As markets consistently adapt to new realities, alpha is always understood as only a temporary opportunity which converts into beta once it has been exploited, according to Schuller. The core of any portfolio should be formed by passive solutions such as smart beta, he says. “Only accept to pay fees for actively managed portfolios if…
If you are running the European business of a global fund management group, historic fund flows can be a seductive but dangerous metric. In the murky, random world of investments, often the only thing you can be sure of is that markets are not going to do you the service of following familiar patterns. …
A 6.5% fall in the Shanghai stock exchange on Thursday and a 16% one-day spike in the VIX earlier on in the week are but the two most recent examples of sudden, significant market movements that have caught people off guard. Perhaps the best example, however, is the sharp compression and even sharper rise in…
Janet Yellen seems to have a way of finding the right words at the right time. Just as talk of possible rate hikes in the US was starting to unnerve investors around the globe, the Fed chief was quick to soothe the markets with her remarks on keeping an overall easy stance. Nonetheless, the financial…
With the United States’ equities bull-run into its sixth year and valuations looking pretty much up to the brim, investor sentiment has steadily shifted more in favour of European stocks – but should investors really make big cuts to their US allocation?
Rishma Moennasing, a senior equity fund analyst for Rabobank in the Netherlands, explains to EIE’s Tjibbe Hoekstra why she is a fan of the core-satellite approach, and how she implements it in practice.
Alpha opportunities are limited, and investors should therefore only select funds which operate in a niche, says Markus Schuller, a Monaco-based consultant who gives asset allocation and strategic advice to global financial institutions.
Dylan Emery talks to Franklin Templeton’s European chief Jamie Hammond about one of the driving forces of the European funds industry in the past few years: the growth of multi-asset, outcome-orientated funds.
According to a recent survey held by Schroders, European retail investors expect to achieve a return of 10% in the next 12 months, while half of their portfolio is invested in low-risk assets. In an interview with EIE’s Tjibbe Hoekstra, Erik Arranto of Elite Asset Management in Helsinki reflects on this apparent mismatch between risk…
The past few weeks have been somewhat of a roller-coaster ride for investors.
Relentless easy monetary policies and short term rates at virtually have kept market volatilities at remarkably low levels. Preparing for the next spike may not be such a bad idea as the effects of central banking measures start to wane.
