Archive
Growing treasury support due to Greek deadlock
We see increasing support for treasuries in current investor behaviour. Investor confidence continues to decline, short and medium term momentum is building and flows remain supportive.
Greece puts a spoke in investors’ wheels
For the calendar year 2012 we maintain our positive stance for global equities in our Tactical Asset Allocation. However, for the short term we decided to reduce our position in global equities to neutral.
Why global equity markets are struggling
In 2010 and 2011, global equities peaked end April and declined afterwards - 16% in 2010 and 24% in 2011. Although the current situation has parallels, the differences seem far more important. We retain our positive equity stance.
Covered Bonds: Attractive instruments to diversify a fixed income portfolio
Fixed income investors are facing a difficult choice between accepting very low yields on the safest bonds and the increased uncertainty of bank debt. They look for alternatives to increase yields without taking significantly more risk. Covered bonds can meet these requirements as they provide an attractive spread versus government bond yields and the additional security relative to unsecured bank debt.
Real estate underpinned by improving macro outlook
The global macroeconomic outlook is constructive for real estate equities (RE). The reappearance of sovereign stress in the Eurozone, coupled with fears of a prolonged recession in this region, is the main risk factor for RE as an asset class. We have a neutral stance on RE.
Chinese economy is in a transitory phase
Recently, our Global Emerging Markets equity strategist, Maarten-Jan Bakkum, was in China. We summarize his views. In our Tactical Asset Allocation we maintain our small overweight in emerging markets equities.
Solvency II
Solvency II is of paramount importance to insurance companies and many pension funds in Europe. Insurance companies need to comply in full. Pension fund solvency requirements evolve in the same direction. The transition period has commenced.
Markets have a breather
Fundamental factors will have to drive a further upward trend on the markets. We think it is too soon to reduce our risk exposure substantially.
Senior Investment Specialist Ad van Tiggelen about Asset Allocation in October.