In the face of bruising market conditions, some fund buyers have opted for strategic fixed income allocation
The movement of Italian government bond spreads will depend on who will be the next finance minister, and future volatility will depend on whether the new government’s decisions diverge from the European Union, according to a top fund selector.
The expected hung parliament following this weekend’s Italian election is likely to encourage fund selectors towards Italian equities and away from the fixed income sector, according to experts.
While Italy faces election and non-performing loan (NPL) challenges, Aviva Investors believe that its market is looking attractive for investors in 2018 but fund selectors warn the country should not be a core part of a global portfolio.
In an earlier article, we looked at the lessons fund managers had learnt from their mistakes. But fund selectors also need to break eggs to make a good cake. Take a look at the mistakes they made and maybe you can learn from them too.
Just selecting good funds doesn’t do it. Having the right mix to ensure proper diversification is at least as important. But can you actually own too many funds?
Fund selectors are losing enthusiasm for absolute return funds. Appetite for long/short equity and bond funds as well as multi-strategy funds has fallen to its lowest point for at least two years.
Stock markets have responded to the Italian No-vote in an even more muted way than to the UK’s vote Brexit and Donald Trump’s election. Are investors being complacent about the political and economic effects of a vote that was seen as vital for the future of the EU not so long ago, or has the referendum outcome in fact already been priced in?
European investors have been dismissing US equities as too expensive for a couple of years. But as the S&P 500 continues to outperform other equity markets, appetite for the asset class is again on the rise.
With the eurozone currently experiencing deflation, inflation-linked bonds are probably not the first thing on the mind of investors. However, as Brent crude is now back at $48, the only way for inflation is probably up. So should investors start thinking about protecting their portfolios against price rises?