Faith in the “Trump trade” faded during the summer, as controversy crowded out policy, but it has sparked back to life as the administration lays out plans for a significant overhaul of the US tax system.
Axa Investment Managers has launched a China short duration bond fund, which aims to give investors exposure to the 56trn (€7trn)renminbi bond market.
An impasse over raising the debt ceiling could see the US hit the financial buffers in early October failing to meet around 23% of its short term obligations, an analysis by Washington think tank the Bipartisan Policy Centre has said.
The unwinding of the Federal Reserve’s quantitative easing programme is very likely to see credit spreads widening with an impact on other assets well beyond US treasuries says Chris Iggo, chief investment officer fixed Income, Axa Investment Managers.
With the exception of funds tracking the US and UK mid caps, no passive funds have been able to generate first or second quartile performance in their respective sectors over the past 10 years, according to research from Chase de Vere.
The exposure of global fund managers to US equities has fallen to its lowest level since January 2008, according to the BofA Merrill Lynch fund manager survey for July.