The combination of low inflation growth and excess liquidity following the ECB’s quantitative easing programme has distorted bond valuations, with some short-duration instruments now offering negative returns. At the beginning of March nearly $3.85trn (£2.56trn) or 17 per cent of developed market global government bonds traded at negative yields, according to Columbia Threadneedle Investments. In […]
M&G fund manager Steven Andrew has slashed exposure to US and UK government debt in his £322m Episode Income fund to ward off concerns about potential risks emerging in the western economies. A year ago over 25 per cent of the fund was invested in US and UK government debt because it was yielding 4 […]
It is easy to be wise after the event but given the ending of quantitative easing by the US Federal Reserve last year (and therefore no more extra dollars being “printed”) simple economic theory would predict that the price of something no longer in excess supply should rise. And it did! From the end of […]
The man at the helm of the recently merged business Columbia Threadneedle Investments is an industry veteran who has watched how increasing regulation has shaped the markets. A former board member of the Investment Management Association (now known as the Investment Association) and a governor of the Pension Policy Institute, Campbell Fleming says it is […]
The European Central Bank’s decision to finally kickstart a quantitative easing strategy has in turn spurred much elation with many fund managers upping their allocation to the embattled region. The Bank’s €60bn-a-month bond buying programme has raised hopes that not only will the initiative help repair the currency bloc’s economy but that it will push […]
The eurozone is breathing easier these days thanks to the European Central Bank’s quantitative easing programme. The central bank raised this year’s Eurozone growth forecast to 1.5 per cent up from 1 per cent previously. Eurozone consumer prices fell by 0.1 per cent in March 2015 from a year earlier, suggesting that fears of continued deflation […]
This year got off to a rocky start for US equities. Until recently, investors believed the Federal Reserve would not raise interest rates in the near term; however, it has recently changed its language about being patient with rate increases and markets are now expecting a hike in the next few months. The prospect of […]
A strict buy and hold discipline has served managers Richie Freeman and Evan Bauman well.
The team behind discretionary investment manager McInroy & Wood reduced the equity weight in its balanced fund from 80 per cent to 70 per cent “as a first step” strategy. East Lothian-based chief executive Tim Wood made this “significant change” to the portfolio in response to concerns about earnings growth. “We were becoming nervous about […]
Kleinwort Benson Investors, the Dublin-based asset management boutique, has seen its revenue stream growing to €24.6m (£17.9m) for 2014, according to its annual results published today. The asset manager, which is part of BHF Kleinwort Benson Group SA, registered a 58 per cent increase in its revenue year on year. KBI’s assets under management reached £5bn at […]
A delayed rate rise could mark the end of the dollar’s recent strength, which may well be what the Fed is hoping to engineer.
New York, London, Hong Kong and Singapore remain the four leading global financial centres, according to researchers. The latest Global Financial Centers Index shows that New York continues to be the leading global financial centre, but only beat second-place London by one point on the 1,000 point scale. Both cities moved up seven points compared […]