Insights

Investment Insights by our experts and thought leaders

China’s deleveraging – When and how will it end?

China’s dual goals of deleveraging and maintaining strong growth may not necessarily conflict, but they certainly pose a delicate balancing act for the government.

Asia High Grade Credit - A More Selective Approach

The rapid development of the Asia Credit markets provides new opportunities to improve the risk and return profile for investors.

Forbes: Bank Bailouts And Italian GDP Changed Draghi's View?

“ECB rhetoric might waver back and forth, but unless there is a global downturn or a major political revolution in Italy, its monetary policy will become less accommodative...”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

Improving Japanese Shareholder Returns Ahead

Our top Japanese Equity staff, including our CIO, report on how Corporate Governance remains on a strong upward trend, which should boost alpha for active managers and beta for the overall market via improvements in ROE and shareholder distributions.

Last Orders At The Liquidity Bar?

It has been our firm contention that financial market liquidity has been booming over the nine months or so, albeit for what might be described as technical rather than strictly official policy reasons. Furthermore, we would fully attribute the recent gravity-defying – and bad news-defying – behaviour of financial markets to these strong liquidity trends. In fact, we would go so far as to suggest that global financial market liquidity conditions have been as lax as at any time since the mid-2000s over recent months.

The Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.

ESG and Credit Investing — What does the future hold?

Changing perception of ESG’s performance impact: An active ESG approach is now regarded as a catalyst for outperformance.

June Gamble Doesn't Pay Off for May

Theresa May’s Conservative Party lost its outright majority in last Thursday’s general election. What are the implications for Brexit and the markets?

Forbes: After Yellen, An All-White Male Fed Board Ahead?

“Could it be possible that Trump would accept an all-white male Fed Board?”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

Ethical Investing – Whose ethics are we talking about?

Of course there’s nothing new about ‘ethical’ investing. What’s changed is heightened public awareness of where our private and public savings are being invested, and increasing recognition that a focus on simply maximising short-term profit is not necessarily the best, or most sustainable approach, over the long term.

A Major Turning Point In Global Inflation?

Given the background noise that is always present within financial markets, and which can from time to time confuse even the most seasoned of investors, every so often it can be useful to consider longer term – and relatively simple - charts in order to regain some form of perspective.

Forbes: Japan's “Show Me The Money” Corporate Governance

“Last night’s release of the first quarter data on aggregate Japanese corporate profits confirms my twelve-year theme about improving corporate governance there and how investors should not worry about the slow domestic economy.”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

Forbes: The Future Of Navarro And America First Policies

“Many people are claiming that President Trump’s aggressive trade rhetoric during the campaign has been permanently overridden by the realities of the presidency.”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

How would a Korean crisis impact Japan?

While highly unlikely, we examine the potential impact on Japan of a major crisis on the Korean Peninsula.

Forbes: What Was Japan's Bubble Like In 1989?

“Japan's example should always provide a guide to investors to be wary of arguments that surges in risk assets to high valuations based upon huge monetary and fiscal policy stimuli, coupled with excessive confidence, even if long-lasting, are acceptable.”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

Japan in Motion: What does the future hold?

We believe that Abenomics is working, however we feel that its success cannot be determined by viewing government policy frameworks in isolation.

Green Bonds – The Next Global Disrupter?

Steve Williams, the Portfolio Manager responsible for Green Bonds in Nikko AM’s London office, examines how this burgeoning asset class is likely to develop into a mainstream part of global fixed income portfolios.

China's Dominant Deficits

Despite the country’s apparent export prowess and its persistent trade surpluses over the last twenty years, we estimate that the Chinese corporate sector is currently running a financial deficit (i.e. the financing gap between in current expenses plus CAPEX and its current revenues) of between US$1.5 and US$2 trillion per annum.

Forbes: Why The Yen Should Not Strengthen In A Crisis

“Any major crisis in the Northeast Asian region, especially one involving a crisis within Japan’s borders, is likely to be handled very aggressively by the Bank of Japan (BOJ), with it bending the rule-book as much as the Fed did during the Global Financial Crisis or as the ECB has done in the past five years.”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

View on the French Elections

Our team of our Portfolio Managers in London, one of whom hails from France, reviews the prospects and ramifications of this weekend's French election.