Solutions in 2021: adapting to a new normal
In unprecedented times, clients are struggling to build well-diversified portfolios, as well as grappling with the rising cost of guarantees and management of very expensive liabilities. After depending on fixed income diversification for decades, they must find new ways to hedge their exposures while growing assets.
A bizarre year of win-lose outcomes in Asia Pacific ex Japan
Much of the region recovered quite quickly following the pandemic, while domestic China developments and the prospect of a new US administration mean 2021 could potentially deliver more win-win outcomes.
Seeking out good alpha opportunities in emerging market debt
The steady recovery of the asset class has been remarkable, while the semi-mature state of EMD markets creates good alpha opportunities across sovereigns and corporates in both hard and local currencies.
European equities – the peak of pessimism is behind us
The world is going to change in 2021! We will have had Brexit, there will be a new president in the White House, and Covid-19 vaccines will be in roll-out.
2021: gotta have faith – in low discount rates
It’s been a tumultuous 2020, but the year ahead will be different and we are positioning ourselves to get the best risk-adjusted returns over the next 12-18 months.
UK equities: resurrection of the deplorable asset class!
The UK equity market has again been out of favour, but the arrival of three vaccines, the prospect of Brexit closure and shares trading at a massive discount provide the best opportunities for a decade
Style rotation towards value is a temporary phenomenon
William Davies, Chief Investment Officer for EMEA and Global Head of Equities, discusses the recent style moves within markets
Covid-19 vaccines, lockdowns and equities
With the Covid-19 case count rising rapidly across the United States and Europe, the immediate economic outlook associated with renewed lockdowns is turning darker.
Covid-19 – estimating the impact of market disorder on asset prices
Asset prices contain enormous amounts of information. This information is typically characterised as being both forward-looking and related to the economy – money-weighted investor expectations about future company earnings, defaults, inflation, monetary and fiscal policy. And, in our opinion, this is almost right. Asset prices consist largely of forward-looking expectations, but they also contain information about the current state of the financial system itself.
Tracking the pandemic – the challenges of interpreting fast-changing data
“The Covid-19 pandemic is generating huge quantities of case count data as the
disease advances around the world. We have seen countries and regions that were hit earliest move through the initial peak and into a period of declining incidence, while those affected more recently are still recording rapid rises in infections and fatalities. But the data raises as many questions as it answers.”
