Risk parity strategies have been great for the last 20 years, profiting from the fall in interest rates and the capital gains it’s generated while avoiding the poor performance of equities. The question now is whether it still makes sense with interest rates having fallen to zero?
The present situation of low interest rates for a “considerable time” creates pressure for both long-term investors and asset managers. Denial or frustration a zero-yield world is still widespread in our industry, however we are starting to see a period of ‘experimentation’.
Highlighting the importance of combining the four cardinal virtues of Plato in relation to the four main long-term factors of equity outperformance, rather than “timing” them.
India’s GDP growth for the first quarter (April-June) of the country’s fiscal year 2014-15 surprised positively at 5.7%, compared to 4.6% in the previous quarter.
China issued reform guidelines in July relating to its decade-old household registration (or hu kou) system.
Low-volatility equities are playing an important role in investor portfolios. Here we address the important question of what investors should expect in the short-term from investing in these funds.
Low-volatility equities are playing an important role in investor portfolios. Here we address the important question of what expected returns and volatility assumptions should be used in order to determine their allocation.
Empirical research has shown that China (and the renminbi) is moving towards the so-called ‘impossible trinity’.
Emerging market equities are likely to be resilient to tighter US monetary policy.
It took a fortnight to count the 135 million votes cast but on 22nd July the election of Joko Widoda (universally known as Jokowi) as Indonesia’s new president was confirmed with a higher winning margin than exits polls on election night had predicted.
While much of Europe is still trudging along recovery lane, many entrepreneurially-managed smaller firms are showing they can grow and adapt faster.
The notion of saving to ensure a decent standard of living in old age is, for many young people, as alien as the idea of not being organically attached to a Smartphone.
High-yield bonds have had a very strong bull run since 2009. Can this continue? The credit specialists from BNP Paribas Asset Management’ Multi Asset team present the investment cases for and against high-yield bonds.
When applying the best academic thinking to the forecasting of equity returns we find equity markets still have further to go in the next 12 months – despite the recent bull market
While the prospect of interest-rate rises and higher inflation could have many investors heading for the exits, these phenomena could brighten the outlook for convertible bonds as the asset class benefits from its position halfway between equity and straight bonds on the asset class continuum, adding another leg to its recent strong run.
In last year’s turmoil over the US tapering plans, India was labelled as one of the ‘fragile five’ emerging markets. Now, with the equity market rallying and the country having just completed a general election, Anand Shah, CIO of BNP Paribas Asset Management India in Mumbai, provides a timely inside view on what to expect from the new government, and the implications for investors.
Given the current expectations of rising interest rates, it could be opportune now to choose an absolute-return strategy to diversify a traditional fixed-income portfolio.
A renminbi short-duration bond strategy can offer investors a powerful blend of yields higher than those on comparable fixed-income issues, potential currency gains and diversification benefits, argues Adeline Ng, head of Asian fixed income.