Investment Insights Our view of the investment landscape

Investment insights

Archived editions of Investment Insights


June 2017

Active opportunity knocks

The reversal of US QE: everything you need to know (but were afraid to ask) (PDF, 393 KB)

With Quantitative Easing such a key influence on markets, we analyze why the Fed has decided the time is now right, how the Fed will reduce its holdings and the likely reactions of investors across asset classes. With the security buffer of liquidity slowly being reduced, our view is that all asset classes will gradually become more susceptible to bursts of higher volatility.

May 2017

Active opportunity knocks

Active opportunity knocks (PDF, 621 KB)

In this edition of Investment Insights we analyze the impact on equity markets of a broadening of market drivers and the high degree of policy uncertainty globally. With sector correlations falling, we look at the implications for investors and analyze whether the opportunity set for high conviction active managers is now improving materially.

April 2017

 Interdependence Day

Liquidity: does less equal more? (PDF, 320 KB)

Can assets that are difficult to price or sell really justify a place in investors’ portfolios? In the quest for improved income and risk-adjusted returns, this question has been driving institutional investors’ fast-growing interest in a broad range of illiquid asset classes including infrastructure, private credit, real estate and private equity. But how should investors approach making an allocation to illiquid assets? We believe the reward investors have historically enjoyed for accepting the risk of less easily tradable assets —the so-called “illiquidity premium”—makes it worth their while to explore illiquid options, though there are pitfalls and guidelines to keep in mind.