Lower leverage makes high yield bonds less risky today than during the 2008 global financial crisis, but returns are also likely to drop this year, argues Kevin Mathews, head of global high yield at Aviva Investors.
Category: Asset Class in Focus
High yield, Brazil, lead fixed income
Despite the return of volatility, high yield funds and a Brazil bond fund top the list of best performers among fixed income products available to investors in Hong Kong.
Barings sees EM financials blossoming
Banks and insurance companies are best positioned to benefit from the growth of emerging market economies and demographic changes, argues William Palmer, co-head of emerging and frontier market equities team at Barings.
Japan overweight boosts JPM APAC fund
The broader adoption of the stewardship code among Japan’s listed companies is showing concrete results in the form of higher stock returns, according to Aisa Ogoshi, portfolio manager at JP Morgan Asset Management, who has been overweight Japan for five years.
Healthcare funds bleed the most
As volatility returns to markets, healthcare-related equity funds have been among the worst performers, according to data from FE Analytics.
V is for Vietnam, not volatility
Despite the return of market volatility, a Vietnam equity fund managed by JP Morgan Asset Management has soared to the top as best performer, according to data from FE Analytics.
The challenge of ESG data disclosure
Adoption of environment, social and governance (ESG) measures in a fund relies on trust in the reporting from the companies, and disclosure and transparency remain a major challenge, according to David Li, senior portfolio manager at Impax Asset Management.
CBH watching volatility, wary of bonds
Market volatility gives wealth managers a valuable opportunity to gauge their clients’ true risk appetite, according to Kevin Liem, chief investment officer at CBH Asia.
Pictet AM: ‘Safe sectors’ no longer safe
Investors should stay away from what they perceive as “safe sectors”, such as consumer staples and telecommunications, as they have accumulated more debt, according to Shaniel Ramjee, London-based senior investment manager for multi-asset at Pictet Asset Management.
A themed approach to unlocking EM value in 2018
Among the opportunities in emerging markets this year, theme investing, as well as China deserve a closer look, according to Rob Marshall-Lee, investment leader in the emerging and Asian equity team at BNY Mellon-owned boutique Newton Investment Management.
