Commodities, currencies and volatility futures deliver yield during covid-19
Tag: Hedging
Short-selling outperformed other hedge strategies
But market-correlated strategies take a hit from the downturn
Nordic fund selectors top five asset classes
We profile the top five asset classes among Nordic fund selectors, according to Last Word Research and market data
Japanese equities return to favour
Net inflows into Japanese equity funds have reached their highest level in 20 months, according to Morningstar fund flows data. Multi-asset and absolute return funds are also seeing an increase in interest.
Multi-asset funds – why are they so popular?
Multi-asset funds have been a long-standing investor favourite. But why do Europe’s fund buyers actually resort to these one-stop shop products?
Institutional investors hedge against Brexit
Not only wholesale investors have reduced risk in the run-up to today’s Brexit referendum. Institutional investors, who are supposed to take more long-term views, have also moved to protect their portfolios.
Brexit – how do fund managers prepare?
With the Brexit referendum now less than a week away, it’s time to ask the question whether the risks associated with a Leave vote are now more or less priced in or whether it does still pay to hedge your exposure to European equities and sterling.
Investors pile into currency-hedged European equity
Consider the following: you come together with your investment committee, look at macroeconomic fundamentals, GDP growth trends and companies’ earnings forecasts, and you come to the conclusion that European equities are far more attractive than stocks elsewhere. However, you and your colleagues also agree that, with a rate hike in the US this year ever more likely and European monetary policy to remain loose, the dollar will come closer to parity with the euro. So what do you do? You buy currency-hedged share classes.
You can hedge but not hide
The devaluation of the euro is regarded by many as a one-way street: if the US is a guide, then Europe’s QE 1 will be followed by QE 2 and QE 3 and if history is a guide, the devaluation may go on for many more months. So what should we do to prepare?
commodities no hedge for equities
Investors can no longer rely on commodity futures to protect their portfolios against stock market volatility, according to a working paper published by the Bank for International Settlements
