Liquid Alts: what to buy, how to buy and what to pay
Diversification into alternative liquid asset classes, in particular unconstrained bonds and long/short equities, have had a great year.
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Diversification into alternative liquid asset classes, in particular unconstrained bonds and long/short equities, have had a great year.
Europe has had a tricky time of it in the decade following the financial crisis and 2017 was tipped to be no different, predicted to be a roller coaster of populist politics and volatile markets.
Investors resumed their European equity buying binge in September, after a brief pause in August, as net fund flows into the asset class recovered to levels seen earlier in the summer. Japanese equities are also in demand.
European investors expect to generate an average annual 8.7% return on their investments over the next five years, according to the Schroders Global Investor Study. Investors in the rest of the world expect even higher returns. Is irrational exuberance kicking in?
Mifid II will be good for investors because it requires asset managers to ensure their funds remain fit for purpose, says Morningstar.
Since Stephanie Butcher took the helm of Invesco European Equity Income, the politics of the region have been in turmoil. But the trials seem to have abated and she is now reaping the rewards of shrewd value approach.
The European economic recovery is not just a blip, fund buyers believe. Most European buy-side investors have had a positive macroeconomic outlook for three quarters in a row now, according to Expert Investor data.
Big brand names in Europe used to be reliable performers, but online businesses have been making them less attractive investments, according to Martin Todd, manager of the Hermes European Alpha Fund.
September saw renewed appetite for European equity ETFs after flows had dropped in August, according to data from Blackrock. But it was another asset class that really stole the show.
Blackrock’s chief investment strategist Richard Turnill believes “monetary divergence” between the US and the eurozone is creating investment opportunities. The assertion is certainly contrarian.
Few sectors have been as volatile as banking stocks over the past few months and years. Despite that, bank equities could outperform on both sides of the Atlantic thanks to benign macro forces.
Valuations of some technology stocks have sky-rocketed in recent, sparking comparisons with the tech bubble at the turn of the millennium. Is this time different?