What will 2015 hold for fixed income? 08:00 GMT At the start of 2014, there was overwhelming consensus on the likely direction of fixed income markets. The majority of asset allocators and fixed income managers had concluded that interest rates would inevitably rise, therefore short duration was the correct positioning. The subsequent lurch down in the global growth outlook, and the resulting downward pressure on bond yields, came as a nasty surprise and many investors found themselves on the wrong side of the trade.
Adding real value – the problem of closet tracker funds 16/12/2014 ‘Closet trackers’, those funds that charge active fees but stick close to the index, have been in the spotlight again in recent weeks. Although the issue has been raised before, it is now taking on new momentum. Are there any signs that the fund management industry is starting to listen?
Russia – time to invest or time to avoid? 11/12/2014 The outlook for Russia appears bleak: The MSCI Russia is down around 40 percent for the year to date. The currency continues to slide and there appears to be no end in sight for the country’s economic woes. Newton’s Jason Pidcock argues that Russia is on the brink of economic, political and territorial collapse, but is there an argument that the stock market is now so cheap there may be opportunities for a contrarian investor?
The impact of oil and emerging market debt 08/12/2014 With the oil price seeing six months of steady decline and reaching a five-year low of $64.10 per barrel last week, opportunities are still present, according to Brandywine’s Regina Borromeo.
Barings' Burstow keeps a close eye on M&A 03/12/2014 Mid-tier mergers and acquisitions will be a major theme in the global mining sector against a backdrop of an “evolving commodity supercycle”, according to Barings.
What is next for Japan? 25/11/2014 Ever since his election in December 2012, Japan’s Prime Minister Abe has put into action an ambitious economic revival strategy articulated around three arrows: monetary policy with massive liquidity injections, fiscal policy with expansionary additional spending and economic policy with structural reforms. Of the three arrows, only the monetary policy has fully lived up to expectations with a massive depreciation of the yen of around 30 percent. Support from the fiscal policy has been diluted by hiking VAT in April 2014 from five to eight percent that counterbalanced the benefit of supplementary public expenses, while the third arrow of structural reforms has been morphed into a policy of thousand needles of positive but not game changing decisions. Labour reforms have been timid with a continued reluctance to create more flexibility for workers in large corporations, as well as to open Japan to needed immigration workers. The trade negotiations within the Trans Pacific Partnership – a US-led trade agreement involving 11 major pacific economies - have come to a standstill.
ETFs more popular than ever – UBS 20/11/2014 ETFs are becoming increasingly popular, with issuers continually developing products and new launches becoming ever more frequent. According to research firm ETFGI, ETFs/ETPs listed in Europe gathered $8.7 billion in net new assets (NNA) in October 2014 and a record $56.2 billion in NNA year-to-date, which surpasses any full year NNA for the European-listed ETF/ETP industry. thewealthnet caught up with Andrew Walsh, head of UBS ETF sales for UK and Ireland to find out the latest news in the sector and at UBS in particular.