Insights

Investment Insights by our experts and thought leaders

Balancing Act Monthly Insights: Global Multi-Asset (January 2025)

We retained our positive view on growth on resilient economic data and dovish monetary policies globally as inflation is now closer to central bank targets worldwide. Our view of defensives improved as higher yields now make the asset class marginally more attractive.

BOJ hikes amid trade uncertainty: focus on AI’s indirect role in risk reduction

The BOJ increased overnight rates by 25 basis points, raising the Mutan call rate to its highest since 2008. The decision reflects the BOJ's belief that the economy is performing in line with its view, with positive real wage growth and an upgraded near-term inflation outlook. Uncertainty over US tariffs persists, but Japan's need for AI-related technologies may play an indirect role in reducing trade-related risks.

How Japan can safeguard against US tariffs

The future of US policy is surrounded by great uncertainty, particularly regarding tariff measures that the US may impose upon its trading partners. We explore options that are available to Japan to safeguard against tariffs the US may decide to implement.

Harnessing Change-Monthly Insights: Asian Equity (December 2024)

Despite concerns about Donald Trump's impact on emerging markets, historical data shows that during his first term as US president, China, South Korea and Taiwan outperformed the S&P 500 although they are the most trade-sensitive equity markets.

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

We expect Asian local government bonds to perform well in 2025, supported by accommodative central banks amid an environment of benign inflation and moderating growth. The ongoing global easing cycle is expected to lower global yields, further supporting Asian bond markets.

Politics, governance reform and engagement opportunities in Japan equities

Following the surprise result of the snap election in October 2024, Japanese politics has entered a very unique phase. We discuss how the fluid political situation could positively impact the Japanese market, which is already feeling the benefits of corporate governance reform, and assess how engagement could play a role in improving shareholder returns in such an environment.

Navigating Japan Equities: Monthly Insights From Tokyo (January 2025)

This month we discuss how a rise in delistings reflects efforts to create a more attractive equity market; we also assess ways in which a merger by large automakers in Japan could stimulate reforms beyond the industry.
Andrew Hunt

Why We Should All Pay Attention to NZ

Despite its small size and geographic location, New Zealand has led the World in a number of fields – physics, Postwar economic theory (Bill Phillips was born in NZ), inflation targeting (amongst the first to make this a statutory target), globalization, and of course in many sports.

Alan Clarke

2025 GLOBAL OUTLOOK

With their central banks bringing interest rates down from previously restrictive settings, 2024 has been the year when most of the world’s economic players have finally begun to experience an easing of monetary policy. In each instance, these reflected confidence that inflation, or perhaps more accurately inflation expectations, had reached a desired level, or were at least on a path towards it.

Balancing Act Monthly Insights: Global Multi-Asset (December 2024)

We retain our positive view on growth on resilient economic data and dovish monetary policies globally as inflation starts to ease worldwide. As for defensives, sovereign bond curves are steepening amid the beginning of the global rate-cutting cycle and bonds are gradually becoming more attractive.

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