Morningstar: Higher starting yields give fixed income investors more cushion
A Morningstar report says the recent volatility in the bond market has created “one of the most compelling opportunities in years”.
Asset managers
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Fed expected to pause rate hikes despite hot inflation
AllianzGI, Allspring and BlackRock predict a delay in rate hikes at the next Fed meeting, but not an end to monetary tightening.
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Robeco still sees upside in Korean equities
Robeco’s value manager Wim-Hein Pals took profits in tech when the market “was going ballistic”.
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Sustainable investing and attractive valuations need not be at odds
Schroders is calling for investors to look beyond dominant market themes to identify businesses whose long-term prospects may not be adequately reflected in their share prices.
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AllianceBernstein: AI disruption, rising rates challenge equity diversification
Investors may need to look beyond traditional portfolio strategies as artificial intelligence (AI) reshapes market correlations and higher rates increase the importance of cash flow, says Nelson Yu.
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Bitcoin’s potential as a store of value raises allocation questions, says Fidelity
Bitcoin’s changing relationship with equities and gold is prompting new questions about its role in diversified portfolios, according to Giselle Lai.
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Templeton: Global income strategies to tackle equity concentration risks
Combining dividend-paying equities, sovereign bonds and structured products can help generate resilient income while reducing portfolio concentration risks, believes Templeton Global Investments.
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Allspring: An investor’s guide to the AI infrastructure stack
The AI investment story is broadening, creating opportunities beyond the biggest names in tech.
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Hamilton Lane: Higher-for-longer rates sharpen focus on underwriting
Investments are being underwritten for higher for longer, and tested for potential input-cost pressure, according to Hamza Azeem, managing director in the portfolio management group at Hamilton Lane.
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Barings eyes blended route to unlock EM debt potential
Emerging market (EM) debt is more diverse and higher quality than many investors think, via a flexible approach to sovereign, corporate and local currency bonds, according to Barings.
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Asset managers favour equities due to resilient growth and earnings
T. Rowe Price and Natixis IM are maintaining overweights to equities as earnings provide support.
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Orbis’s Perrone: We are ‘not tempted’ by long-dated bond yields
Expresses preference for shorter-term or inflation-linked bonds.
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Invesco: Higher Treasury yields need not spell trouble for stocks
Rising bond yields are putting pressure on lower-quality credit and narrowing stock market leadership, although resilient earnings could continue to support US equities, says Brian Levitt.
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BlackRock cuts US stocks to neutral, upgrades Treasuries
Higher yields and “potentially excessive” Fed tightening expectations have prompted the BlackRock Investment Institute to unwind its long-held US Treasury underweight.
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Fidelity sees further upside in Japanese banks as rates rise
The shift towards higher interest rates is creating opportunities for selective exposure to financial stocks, says Min Zeng.
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Four in five asset managers believe market risk has increased
Liquidity and concentration concerns.
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Investment chiefs warn equities face higher bar amid rising bond yields
Equity earnings momentum needs to offset rising bond yields, according to multiple chief investment officers (CIOs).