Funds which aim to achieve positive returns regardless of market direction have enjoyed unprecedented inflows over the past year. While the main driver behind this trend is the increased investor need to dampen their losses when markets fall, risk-parity funds engender risks of their own kind.
After months of grinding yield compression the pressure valve on the German sovereign bond market was released, with 10-year bund yields jumping almost ten-fold in the space of a few days.
Architas has appointed Nathan Sweeney as co-manager on its active multi-asset fund suite following the departure of Stephanie Carbonneil for Schroders.
There remains a significant disconnect between investors’ appetite for risk and the returns they expect to receive, new research by Schroders shows.
A raft of regulatory changes and a backdrop of low yield from traditional income investments means the exponential rise in the popularity of multi-asset funds is unlikely to taper off any time soon.
The expected US interest rate hike coming some time this year has spurred investor interest in unconstrained fixed income strategies, according to Amanda Stitt, investment director at Legg Mason.
Bonds have hit their highest overvaluation levels for more than 14 years, according to a survey by Bank of America Merrill Lynch.
An inflection point is taking place across equity markets inviting investors towards more cyclical names.
Barings has rejected the idea of a great rotation out of fixed income and towards equities, rather seeing a marginal difference in sales between the two asset classes.
Threadneedle Investments has halved its equity overweight in the last week, shifting approximately $1bn back into cash amid concerns over China and reservation over the asset class.
In our last asset allocation update, we framed the outlook for 2014 in the context of how bond markets deal with policy normalisation; what happens to emerging markets as a result; and whether corporate profits will meet expectations?
After five years of solid gains on the US stock market the next seven could deliver absolutely nothing, according to GMOs James Montier.
