Emerging Markets (EM) debt had a torrid 2018 as global macro risks (including general geopolitics and trade wars), softer EM growth and idiosyncratic stories (Argentina, Turkey), all repriced relatively expensive valuations at the beginning of the year. Are the new prices a better reflection of fundamentals? This will largely depend on the evolution of 5 key topics.
The new year has started with a blunt reminder of probably everything that investors wanted to forget over the holiday season: economic data is worsening while the oil price continues to fall, dragging down equities and the most equity-like fixed income asset classes. Traditional safe-havens continue to rally, as they did in 2018.
Whilst you can make some strong arguments for the negative returns from 90% of asset classes in 2018 based on the return of populist politics – think of Brexit, Italy’s political instability, AMLO’s election in Mexico and tariffs everywhere – the answer to those negative returns might be simpler: the de facto global discount rate, the 2-year US Treasury bond yield, has risen by almost 100 basis points (bps) over the year, and thus repriced global assets. Why did this happen?
Please join us for Majoring on the Macro, a series of CPD-accredited seminars. M&G’s Julian Hince will present on the macro-economic outlook for the global economy, as well introduce ESG investing. Accompanied by speakers from Prudential, who will present on the opportunities to mitigate the effects of Inheritance Tax.
Corporate, Emerging, Currency and Commodity markets – almost everyone but traditional safe-havens – had an early Halloween week on mounting concerns over challenged US corporate profits and dismal European PMI and Chinese growth data.
Join us on Thursday 25th October at 10am where we will discuss the M&G Emerging Markets Bond Fund with the deputy fund manager, Charles de Quinsonas. During the webcast, Charles will be asked his views on the current environment following recent volatility in the asset class, as well as the relative value of hard and local currency government and corporate bonds. Finally, he will discuss the current positioning of the portfolio and where he sees opportunity and risk.
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One candidate has been stabbed and a former potential one is in prison. It is not a movie but the run up to a general election in the world’s eighth largest economy, and one that can set the mode for Emerging Markets afterwards. What are the polls telling us and how could bond and stock markets react?
Tune in to hear four of M&G’s leading fund managers as they discuss the economic backdrop, markets and where they see challenges and opportunities for investors today.
Last Saturday marked exactly 10 years since Lehman Brothers went bust. Are we still suffering the consequences of the Global Financial Crisis that followed? Had the crisis not occurred, would we have today’s political uncertainty? Watch M&G fund manager Wolfgang Bauer and Investment Director Ana Gil discuss how the clash between growth and political risk are driving markets today, and what opportunities such dynamic might present.
Gold posted its fifth straight monthly drop and has fallen almost 8% YTD despite escalating trade tensions and geopolitical risks. In this month’s update, Ritu Vohora, Investment Director looks at why the precious metal seems to have lost its lustre and safe haven status.
Volatility in the US Treasury market has broken records this summer, reaching lows not seen since the 1960s. This can’t just be attributed to the summer lull, so what has been going on? In this week’s episode of BVTV, Laura Frost, Investment Director looks at the opposing forces that have been at work, and examine what influence these have had on the US dollar. Inevitably, most answers lead back to President Trump.
After a turbulent start to the month, the second half of August has turned out to be a much calmer period for financial markets.
In this short video Co-fund manager Justin Upton showcases one of the assets held within the M&G Property Portfolio, the R+ building in Reading. The asset, which was acquired in 2014 has been completely re-developed and is regarded as a best-in-class asset. Justin discusses the benefits of investing outside of London, the intention behind the investment and the success of the project for both the investor and the fund.
A major study released last month found that non-retired UK investors are saving a higher proportion of their income for retirement than many parts of Europe. Before we start celebrating, there are two important points to consider.
Join us this September for the opportunity to hear from M&G’s leading fund managers. With 9 venues across the country, don’t miss the chance to hear their thoughts on key macro trends and asset class performance, as well as how they translate their views in portfolio positioning and strategies.
Market sentiment turned risk-off last week, largely due to the new US sanctions on Russia, which destabilised the ruble, and with the worsening of the situation in Turkey, which sank the lira and hit European lenders to the country. What are these two crises telling us about the state of the global economy? Watch the latest insights from M&G fund manager Wolfgang Bauer.
Despite strong earnings growth and reasonable valuations, equity markets continue to be buffeted by swings in sentiment from an escalating trade war. In this month’s equity market perspective, Investment Director, Ritu Vohora looks at the tug-of war between the bulls and the bears.
In the seventh in a series of videos looking at the change in investor behaviour over the years and how asset managers have responded, Global Head of Distribution, Jonathan (Joffy) Willcocks looks at the power of compounding and dividend growth; an income generator craved by many investors.
Remember last year when most financial commentary was saying that market volatility was too low? That was a pretty unusual state of affairs.
Don’t miss the opportunity to hear M&G’s leading fund managers discuss key market trends and their thoughts on how their asset classes are performance against the current economic backdrop, as well how they translate their views in portfolio positioning and strategies.