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.
Category: Analysis
Risky bonds – firmly back in favour
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.
Fund buyers take refuge as Grexit edges closer
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 underestimating HNWI
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 managers struggle to explain investment philosophy
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.
Icelandic fund buyers plan to raid the world
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.
Pension fund investors unwillingly increase equity
The majority of global pension funds have been increasing their equity allocation in the past six months. However, many would prefer to decrease it if they could just find yield somewhere else, because they expect a serious market correction.
Volatility, high-yield and the risk of policy error
A 6.5% fall in the Shanghai stock exchange on Thursday and a 16% one-day spike in the VIX earlier on in the week are but the two most recent examples of sudden, significant market movements that have caught people off guard. Perhaps the best example, however, is the sharp compression and even sharper rise in […]
GAM poll confirms EIE data – a third of investors believe in Grexit
GAM’s poll, which was conducted at a client event attended by 78 investors and featured prominently on the front page of the FTfm on Monday, shows that investors’ assessment about a Grexit has not really changed over the past weeks, athough Greece and its creditors keep failing to reach an agreement on the extension of Greece’s […]
All eyes on China at Expert Investor Netherlands
China is on the verge of reaching its so-called Lewis Turning Point, as China’s work force as share of the population has reached a peak and cheap supply of labour from the countryside is running dry. The economy will therefore need to find new engines of growth, which will slow down to 4 or 5% […]
