Archive | March 2016

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A Stable-Growth Environment: Value is Likely to Perform Better

For many value-oriented investors, the last five years have been a challenging period given an elevated macroeconomic risk and bouts of volatility, backdrop of the low growth and structural change in China. In the current environment characterized by more stable growth, value equities are likely to perform better. As of the February 29, 2016, U.S. […]

The Way the Asset Management Business Has Changed

There are currently 4,406 actively managed equity mutual funds managing about $5.9 trillion. From the start of 2009 through December 2014, domestic equity mutual funds have seen net outflows of -$629.4 billion while bond funds have seen net inflows of $969.1 billion. The ETF business has grown from 80 in 2000 to 1,603 funds managing […]

Macro Themes and the Implications: Time to Pay Attention to Global High Yield Strategy (I)

Key Macro Themes and the Implications Low inflation: Inflation is low but it does not mean inflation is zero. The slow growth in global economy keeps inflation subdued even as CPI slowly rises. Global policy divergence: Fed continues to normalize slowly as other central banks pursue stimulus policies. Investors should expect yields to rise modestly. […]

Market Commentary – January 2016

Developed Market Debt Develped market yield fell sharply across the curve on global growth concerns, low inflation expectations as a result of lower commodity prices and continued anxiety over the Chinese economy. The U.S. manufacturing sector disappointed, and investors tempered rate hike expectations, pushing Treasury yields lower. Japanese government bond yields slipped when BOJ Governor […]