Insights

Investment Insights by our experts and thought leaders

Has China Outgrown the EM Umbrella

Considering the unique profile of the market and how much China influences the global economy, a decision about China could be the most important call an investor can make at this time.

Asian Equity Monthly Outlook - June 2018

The MSCI AC Asia ex Japan (AxJ) Index closed -1.3% in USD terms as markets turned more risk averse amidst macro uncertainties, trade tensions and higher oil prices.

Asian Fixed Income Monthly Outlook - June 2018

In May, US Treasury (UST) yields ended lower. A solid US jobs report supported the bearish bias in UST yields that prevailed.

Happy Birthday ECB

The ECB recently celebrated its 20-year anniversary and instead of a birthday cake, DB research released a compelling chart about how different asset classes have performed over this time period.

House View: Global Economic Rebound And Equity Reflation

Despite uninspiring global equity performance in the last three months, at least for USD-based investors, Nikko AM’s Global Investment Committee continues to be positive on global equities on a one-year view, particularly those in Japan, Europe and the Asia Pacific, but remain unenthusiastic on global bonds.

Global Fixed Income & Credit Outlook - June 2018

Global growth is becoming increasingly less synchronized, with the Eurozone, Japan and UK showing some moderation in growth, whilst the US remains relatively robust.

Japan Equity Monthly - June 2018

The Japanese equity market declined in May, with the TOPIX (w/dividends) dropping 1.67% on-month and the Nikkei 225 (w/dividends) falling 1.18%.

Where Are We With Corporate Governance In Japan?

Japan’s corporate governance reforms have progressed slowly but surely and the recent revision of the code will add momentum for the unwinding of cross-shareholdings.

Forbes: Japan's 'Show Me The Money' Corporate Governance Update

Japanese profit margins continued roughly flat in the 1Q, but at a high plateau due to improved corporate governance over the past years. With global economic growth pushing up the top line, profits should continue to rise significantly in the quarters ahead.

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

China MSCI Inclusion Has Room to Grow

The much anticipated MSCI A Share inclusion happened on 31 May 2018 and will pave the way for further internationalisation of China’s stock markets.

The Case for Private Infrastructure Investing

We believe that long-term oriented institutional investors could find investing into private infrastructure via actively managed funds an attractive investment proposition.

After depreciating for over 18 months, the US dollar has managed to make a comeback, recouping its 5% YTD loss in a matter of weeks. Coupled with 10 year US Treasury (UST) yields hovering around 3%, this has put pressure on Emerging Markets (EM).

Italy: A bigger threat than Brexit?

Although Italy possesses a useful and not insignificant visible trade surplus, the country is nevertheless continuing to suffer from persistent and we might suggest remarkably large capital account deficits as its domestic savers by and large continue to shun the local asset markets

Thoughts From the Journey

It has often been the conversations I have had with the people along the way which I have found most helpful when it has come to making investment decisions. This article aims to tell some of their stories and how apparently chance encounters can help generate investment ideas.

Asian Equity Monthly Outlook - May 2018

The MSCI AC Asia ex Japan (AxJ) Index gained 0.7% in USD terms. Trade jitters receded following China’s commitment at the Bo’ao Forum to further open up the economy to foreign businesses.

Asian Fixed Income Monthly Outlook - May 2018

US Treasuries (USTs) experienced a sharp sell-off in April as yields rose about 10 to 24 basis points (bps) across the curve. Trade war fears between US and China receded, with Chinese President Xi Jinping's commitment to further open up the economy to foreign businesses.

Forbes: The Contours Of A China-U.S. Agreement

Recent events have shed some light on a likely China-U.S. agreement fairly soon. Key to such was Trump’s order for ZTE’s sanctions to be lightened so that it can remain in business.

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

Japan Equity Monthly - May 2018

The Japanese equity market rose in April, with the TOPIX (w/dividends) climbing 3.55% on-month and the Nikkei 225 (w/dividends) rising 4.73%.

Could There Be A Global Credit Crunch?

In a somewhat unscientific way, we could suggest that risk markets have lost their ability to shrug off bad news and even economic disappointment (despite all of the hoopla, 2017 did not in fact live up to consensus expectations) and instead seem now to view any adverse news as a reason to sell.

Global Fixed Income & Credit Outlook - April 2018

The broad-based synchronized growth story continued to soften through March, as consumers pared back purchases in the face of rising prices.