Insights

Investment Insights by our experts and thought leaders

Future Quality Insights: healthcare offers diversification from market hot spots

We remain very strong supporters of the healthcare sector. In addition to the well-known demographic drivers, innovation is enabling structural changes in healthcare delivery and in our view these changes will confer years of strong organic growth opportunities if we choose the right companies.

Why households are key to the next phase of Japan’s “virtuous circle” of reflation

Japanese households, long under-invested in financial markets, are expected to play a significant part in the country’s “virtuous circle” of reflation as they seek returns capable of keeping up with inflation.

Trump vs. Biden II: what implications could the US election have for sustainable fixed income?

The stage is now set for a Biden versus Trump rematch in November. So, what does this mean for sustainable bonds?

Balancing Act-Monthly insights: Multi-Asset Team-March 2024

Improving economic dynamics defy conventional logic of what one would expect from one of the most aggressive tightening cycles in history. However, if one considers the magnitude of the 2020 expansion in money supply, there is still significant excess liquidity, perhaps transmitting to resilient demand and cash flow that so far exceeds the headwinds of higher rates.

Harnessing Change - Monthly Insights: Asian Equity-February 2024

We think that there could be some short-term rebound in China as valuations are in extreme oversold territory. However, for the rally to be more sustainable, we are monitoring for a few drivers, including supply-side measures that can resolve China’s main housing issues.

On the Ground in Asia-Monthly Insights: Asian Fixed Income (February 2024)

We maintain a positive outlook for Asian local government bonds, particularly India, Indonesia and Philippine bonds. In our view, the disinflation trends in these countries should provide the Reserve Bank of India, Bank Indonesia and Bangko Sentral ng Pilipinas with the flexibility to shift towards rate cuts later in the year.

Prospect of lower rates makes Asian REITs an increasingly vibrant asset class

The Asian REIT market is the second-largest REIT market globally, but there is still plenty of room for growth. As REIT regulations and listing processes become increasingly market-friendly in newer REIT markets, we expect more asset owners to securitise their real estate into REIT products, driving greater investor interest.

BOJ takes significant yet incremental step on path back to “normal” rates

The “trial balloons” of media announcements in advance of today’s interest rate hike by the Bank of Japan —its first in 17 years—apparently did their job, as the end of its negative interest rate policy, yield curve control and ETF purchases were smoothly digested by markets.

Assessing the impact of green bonds

The green bond market has experienced tremendous growth since 2007, but despite its rapid success, there are still barriers to overcome. In particular, assessing the impact of green bonds continues to be a contentious topic.

Nikkei reaches all-time high: five reasons the rally will endure

Japan equity was the best-performing asset class in 2023, but despite the Nikkei reaching all-time highs in 2024, Japan also recently experienced economic contraction. Against that backdrop, Japan Equity Investment Director Junichi Takayama offers five reasons why Japan’s economic resurgence still has ample runway.

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