“I am well aware of the dangers of proclaiming the death of an asset class,” says James Montier at GMO, who does so anyway, advising higher cash holdings.
Fixed income
The great rotation from fixed income to equities is yet to occur. But the future of the asset class is up for debate as the Federal Reserve looks to taper its QE programme.
The withdrawal of investment banks as market-makers could cause problems if bond investors rush for the exits amid QE tapering, but BlueBay sees continued flows.
Indonesia and India face structural obstacles to economic growth from the double whammy of weaker currencies and high oil prices. Lack of fuel subsidy reform is holding both back.
The $1.2 trillion state pension fund hires eight firms to manage overseas stocks, and is finalising domestic equity mandates. It comes after record losses in domestic bonds.
Fidelity Worldwide Investment expects growth in its institutional investor-base to outpace that of its retail business. Hiring is on the horizon.
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The private equity giant aims to extend its private lending activities and is also eyeing property investments as it seeks opportunities for its $6 billion Asia-focused fund.
Weaker emerging market currencies have hit investors who allowed bond managers to talk up the returns of local currency bonds. To get a full view of the damage, look back two years.
In partnership with HSBC Global Asset Management
Geoffrey Lunt of HSBC Global Asset Management explains how China’s inclusion in the Bloomberg Barclays Bond Index could help investors boost their returns.
In partnership with State Street Global Advisors
A new survey by Greenwich Associates indicates that investors see exchange-traded funds as an increasingly effective tool to access Asian fixed income. The liquidity of the products is a particular draw.
In partnership with HSBC Global Asset Management
The backdrop for Hong Kong dollar bonds appears supportive for those investors seeking tried-and-tested assets to weather the uncertain macro outlook.
Junk bonds may offer attractive returns relative to sovereign debt, but both asset classes are at record low yields. Are investors taking sufficient note of fundamentals?
