Investors are advised to balance risk and reward in the coming year, and take a “barbell approach” to investing, argues Blackrock’s Belinda Boa, Hong Kong-based head of active investments for Asia-Pacific and chief investment officer of emerging markets for fundamental active equity.
The spread between the two-year and 10-year treasury is now 0.09%.
The market for factor-based strategies is not yet there for individual investors in Asia, according to Stephen Quance, Singapore-based director for factor-based investing at Invesco.
Looking past negative headlines regarding tariffs and trade wars, the world is currently seeing healthy albeit slower economic growth and upward pressure on interest rates due to the phasing out of monetary stimulus. Such an environment presents a buying opportunity for Convertible Bonds (CBs). CBs’ equity-like characteristics mean they benefit from economic growth while they are only modestly impacted by rising rates because of their low effective duration, which averages 1.8 years across the asset class.
The ‘high conviction’ Pictet Indian Equities Fund is focused on financials and technology.
Cheaper price multiples will drive global equity returns next year, and China’s onshore bonds are starting to look appealing, argues Patrick Brenner, head of multi-asset investments for Asia.
Higher downside risk for global equity markets requires an overweight to fixed income vs the benchmark, according to Thomas Poullaouec, Hong Kong-based head of multi-asset solutions for Asia-Pacific.
The strategy of a financial sector fund run by the firm for 12 years has been revised to address financial innovation.
Asian markets that fell the most during the first half will do the best in 2019, argues Blackrock’s Andrew Swan.
Volatility brings emerging Asia equities to overweight, according to James Ashley, head of international market strategy at Goldman Sachs Asset Management.
Part of the Mark Allen Group.
