You often hear the old adage "it’s different this time", but 10 years on from the start of the global financial crisis, are we actually at risk of repeating the same mistakes?
Net inflows into Japanese equity funds by European investors have picked up recently, as the current macro environment looks conducive to Japanese equities. Asset managers are also becoming increasingly bullish on the asset class.
While it’s no secret that passive, low-cost products are relentlessly increasing their market share, investors’ hunt for yield has also buoyed sentiment towards flexible and unconstrained mandates, according to Morningstar.
Political risk in Italy is currently overstated, and government finances are better than markets appreciate. Investors have all the reason to be overweight Italian government bonds, argues David Zahn, head of European fixed income at Franklin Templeton Fixed Income Group.
Performance fees are often seen as a necessary evil. But the unambitious hurdle rates most funds employ mean fund managers also get rewarded for underwhelming performance. Is that fair?
The improving economic outlook in the euro area has prompted the European Central Bank to consider reining in its monetary stimulus. How should investors respond to the prospect of monetary tightening in Europe?
While markets could remain complacent and expensive for some time to come, recession risk is rising, says asset manager Robeco. Fidelity is also increasingly cautious, expecting “the longest equity bull market since World War II” to end within 18 months.
It has now been a year since the UK electorate made, as a British fund manager put it recently, “a huge strategic error of the like the country hasn’t experienced in maybe a century” by voting for Brexit.
Has the run into emerging market bonds only just started, or have flows already reached saturation point? And what does that mean for the outlook for the asset class?