As the year draws to a close, it’s time to scrutinise the forecasting capabilities of asset managers and fund selectors. Did their favourite asset classes at the end of last year indeed deliver the best performance, or did asset allocators fail hopelessly? In the first part of a two-piece series, we look at their equity market outlooks.
This Wednesday, investors’ eyes are once again on the Fed, which is widely expected to deliver its first rate hike since 2006. Across Europe, fund selectors have been impatiently waiting for this for months. There is one exception though: investors in Scandinavia prefer the FOMC to defer a first rate hike to next year.
Bond indices were never intended to form a basis for investment, but merely reflect a market. As a consequence they expose investors to unintended risks and are not a rational investment strategy. Indices were never meant to drive investment strategy Bond indices, like all market indices, aim to represent a segment of the investable universe. […]
One of the questions we examine in the October issue of the magazine is whether it makes sense now to allocate substantially to cash.
Thanks to the extensive forward guidance of the world’s major central banks, an interest rate hike by either the Fed or the Bank of England would not take investors by surprise. However, short-term consequences could still be grave, Bank of England Governor Mark Carney has reportedly warned.
Emerging market debt and high yield bonds, which have had some pretty high inflow volatility recently, are now firmly back in favour with European investors. By contrast, net inflows into investment grade bonds are slowing down.
As Greece is heading for a default, which would significantly increase the possibility for the country to be forced out of the eurozone, markets have plummeted. This is not at all surprising, considering Europe’s fund buyers have consistently been telling us they will decrease their allocations to both bonds and equities if a Grexit appears likely.
Wealth managers are significantly underestimating the propensity of ultra high net worth individuals to make use of automated advice services, the World Wealth Report 2015 shows.
Asset management companies are starting to struggle explaining their investment philosophy to fund selectors according to a survey by research outfit Cerulli. It asked a selection of European asset managers what they find the biggest challenges in promoting their products to fund selectors.
The announcement by the Icelandic government last week that it is planning to lift the capital controls on the island can already now be seen as a watershed moment for local fund selector polls, at the Expert Investor Iceland held last week in Reykjavik revealed.