The only asset class not offering sub-zero returns
Most asset classes will provide negative real returns from now on, but there is one exception to this rule, according to US asset manager GMO.
Author: Tjibbe Hoekstra
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$1trn Norway wealth fund wants to drop oil and gas stocks
Norway’s sovereign wealth fund is proposing to dispose of all its holdings in oil and gas stocks to “make the government’s wealth less vulnerable to a permanent drop in oil and gas prices,” the fund announced in a letter to Norway’s ministry of finance.
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Pimco Income needs ‘big new idea’ to continue outperformance
The Pimco Income Fund has been in unprecedented demand with investors this year, but why? We spoke to investors to discover the fund’s secret to success and whether it is likely to continue outperforming.
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M&G goes green with ethical high-yield fund launch
M&G Investments has launched an ESG-screened global high-yield bond fund, the company’s first venture into the area of responsible investing.
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Investors flock to EM debt in yield-starved world
With most global fixed income markets priced for perfection, investors are flocking to the one yield hold-out left: emerging market debt. But are investors really being compensated for the risk?
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Will performance-based fees work?
Fund selectors applaud the “courageous” step by Fidelity to introduce performance-related management fees across all its funds by next year, but will the move really improve long-term performance after fees, and is the new model sustainable with most active funds failing to beat their benchmark?
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Has the Trump trade been trumped?
Investors have been hiking their allocations to risky assets since Donald Trump was elected US president exactly a year ago, but has he had any role in driving these flows?
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PA ANALYSIS: Should investors buy the Catalonia dip?
Dips to buy in have become ever scarcer in the QE-led era, but does the performance gap between Spanish and other European equities that has emerged thanks to the political turmoil in Catalonia present investors with a great opportunity?
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No surprises from Draghi: ECB halves asset purchases to €30bn
Bond and equity markets were left unmoved after ECB-president Mario Draghi announced on Thursday that the ECB will cut the size of its monthly asset purchases in half from January next year.
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Keep your focus, fund managers
If fund managers seek to deliver consistent alpha, they’d better refrain from pushing too many buttons, says Rob van Wechem, head of investments at private bank Oyens & Van Eeghen in Amsterdam.
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PA ANALYSIS: Fund fees wipe out ‘20% of gross returns’
The European Securities and Markets Authority (Esma) is turning up the heat on asset managers, highlighting the impact of fund charges on returns in a fresh report. Fund fees wipe out an average 20% of gross returns, according to the regulator
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European recovery ‘not a blip’
The European economic recovery is not just a blip, fund buyers believe.