Insights

Investment Insights by our experts and thought leaders

Emerging Divergence as Unwinding of QE Gathers Pace

What is the prognosis for Emerging Markets as major global central banks begin to tighten policy?

Forbes: Taming The US And Chinese Goldilocks Twins

“When the two largest economies in the world are signaling that that they don’t want asset prices to rise too much, investors should take note to curtail any excessive optimism...”

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

Japan Equity Outlook - July 2017

In a survey conducted by the Nikkei in March 2017, 80% of respondent companies indicated that they were either planning or considering the implementation of productivity enhancing investments.

Equities and Income in an Ageing World — Why Dividends Matter

The ageing world presents significant savings and productivity challenges to this and subsequent generations of investors and workers. Change will no doubt remain a constant, as it has been throughout the last two centuries in particular.

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

Asian Fixed Income Monthly Outlook - July 2017

US Treasury (UST) yields were range-bound for the most part of June, before surging in the last few days of the month. The US Federal Reserve (Fed) raised interest rates by 25 basis points (bps), despite soft inflation data.

Asian Equity Monthly Outlook - July 2017

The MSCI Asia ex Japan (AxJ) Index rose by 1.6% in US dollar (USD) terms. Year-to-date (YTD), the index returned 22.8%, outperforming MSCI World by over 12%.

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.

Japan Equity Outlook - June 2017

In the Japanese equities market, high dividend strategies have significantly outperformed other strategies. We believe that – in a low growth, low interest rate environment where investors yearn for yield – these strategies will continue to outperform.

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

China A-Shares: A New Milestone

Following four years of intense consultation and three failed attempts, MSCI has just added China A-Shares into its international indices. We view this as expected and in some ways, long overdue.

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?

Asian Equity Monthly Outlook - June 2017

MSCI Asia ex Japan (AxJ) gained 4.7% in USD terms, outperforming the MSCI AC World and MSCI Emerging Markets Indices.

Asian Fixed Income Monthly Outlook - June 2017

Better-than-expected US non-farm payroll figures and a more favourable FOMC statement were offset by political uncertainties in Washington. FBI director James Comey's firing and investigations into possible ties between Trump's election campaign and Russia increased concerns of a set-back in the president's economic agenda.

Global Fixed Income & Credit Monthly Outlook - June 2017

The European Central Bank (ECB) has taken its first step towards reducing its stimulus programme by omitting the mention of "lower levels" for interest rates in its forward guidance, even as ECB President Mario Draghi denied that there was any discussion of tapering in the latest policy session.

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