Emerging market equities and debt have been the most popular asset classes with European investors this year. But now Donald Trump’s election threatens to spoil the party.
As part of their ongoing search for yield, European investors are intending to increase their exposure to emerging market debt. While ready to take on a bit more volatility, they still shy away from taking on duration exposure in the region.
Emerging market currencies are set to strengthen even further despite the significant appreciation from lows already seen this year, said NN Investment Partners.
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.
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.
Financial markets have lacked direction in recent months, with the main equity indices all very close to where they were at the start of the year. Macroeconomic data are not strong enough to reinvigorate the bull market, yet not sufficiently weak to stoke fears of recession.
The extent to which a company adheres to ESG-criteria does not materially impact stock returns. However, changes in ESG scores can tell you something about future return potential of a stock, according to new research commissioned by NN Investment Partners.
It has been the question probably most frequently asked by investors over the past few years: should I increase my allocation to emerging markets now? Each time, the eventual answer has been negative as short-lived rallies have failed to sustain themselves. Will this time be any different?
The downward trend that has taken hold in most equity markets during the past couple of months hasn’t led to a deteriorating investment sentiment, according to a poll conducted by NN Investment Parners among a group of institutional investors.
The majority of institutional investors in Europe plan to increase their allocation to convertible bonds in the next three years, according to a poll by NN Investment Partners.