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.
Fund selectors applaud the “courageous” step by Fidelity to introduce performance-related management fees across all its funds by next year. But will the move really improve long-term performance after fees, and is the new model sustainable with most active funds failing to beat their benchmark?
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.
Net inflows into Japanese equity funds by European investors have picked up recently, as the current macro environment looks conducive to Japanese equities. Asset managers are also becoming increasingly bullish on the asset class.
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?
Donald Trump’s election to the US presidency has triggered a shake-up of some parts of the equity markets. Is there more to come or have markets been relying too much on their crystal balls?
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.