After several tough years, things have been looking more positive for investors in emerging markets over the last couple of years, with the region outperforming its developed market peers in both 2016 and 2017.
JP Morgan Asset Management (JPMAM) has launched three fixed income exchange traded funds – the group’s first bond ETFs in Europe.
The new year has started with a more balanced investment outlook in the fixed income market with coupon payments likely to be a main component of returns in 2018, according to Invesco Perpetual.
In an environment of protracted Brexit negotiations, continued political uncertainty and weaker economic growth, investors generally lost faith in UK equities in 2017 with many migrating to global and absolute return funds.
Despite concerns about heightened political volatility, 2017 proved a strong year for funds investing in Europe with no funds in the IA Europe ex UK sector losing money.
Despite a strong year for US stock markets in 2017, a strengthening pound has taken some of the gloss from returns for UK-based investors.
The Japanese economy is in the midst of its longest period of growth in more than a decade, helping drive an average return of 16.11% in sterling terms for funds in the UK Investment Association’s Japan sector in 2017, with the best performing fund up nearly 40%.
Those investors who took a risk on approach in 2017 have been well rewarded, with the traditionally more volatile sectors and regions topping the performance return tables over the year.
Global dividends grew at their fastest rate for more than three years in the third quarter of 2017, with the UK putting in the strongest performance, according to the latest Janus Henderson Global Dividend Index.
While never in doubt, the strength of victory of Prime Minister Shinzo Abe’s ruling party in Sunday’s snap lower house election exceeded expectations, with the Liberal Democratic Party (LDP) securing more than half the number of lower house seats.