LONDON (Reuters) – What a difference a year makes.
A Reuters’ annual investment outlook summit 12 months ago was abuzz with debate over whether the euro zone would still be in place by the end of 2012, at least with all 17 members.
After another roller-coaster year that has brought Spain to the forefront of the debt crisis, the currency bloc is rattled but still intact and break-up fears have taken a back seat for global chief investment officers.
LONDON (Reuters) – The recovery in the U.S. housing market and Ireland’s return to capital markets suggest the global economy might be emerging from the financial crisis, but a massive bubble is building in core sovereign debt, says Allianz Global Investors.
“It is the first time since this crisis started that we can say there are things falling into place that give us some hope that we might see some light at the end of the tunnel,” Andreas Utermann, chief investment officer at Allianz Global Investors told the Reuters Global Investment summit on Wednesday.
Global funds are having a good year.
According to a report by financial services lobby TheCityUK, pension funds, insurance funds and mutual funds are on track to finish the year with $21 trillion more of assets under management than when they hit rock bottom in 2008 with the Lehmann collapse.
They are growing for the fourth year in a row, and much more so than last year, thanks to the recovery in equity markets.
LONDON (Reuters) – European fund managers raised their equity holdings to a 15-month high in October and trimmed cash levels as central bank stimulus encouraged a shift into riskier assets, a Reuters poll showed on Wednesday.
Most saw a respite in the euro zone debt crisis, with 15 out of 18 fund managers polled saying Greece would still be in the currency bloc at the end of next year, while 13 believed benchmark Spanish bond yields have already seen their peak in the current crisis.
LONDON, Oct 25 (Reuters) – The ECB’s bond-buying plan,
Madrid’s reforms and global monetary easing are luring foreign
investors back to Spanish sovereign debt, particularly for
It is a case of searching for yield while knowing that the
European Central Bank has your back.
LONDON, Oct 25 (Reuters) – Yield-hungry pension funds and
sovereign wealth funds are stepping in where crisis-hit,
regulation-laden banks are pulling back: lending to cash-starved
Pension funds hold more than $30 trillion of assets and
sovereign wealth funds some $3-5 trillion, meaning that even a
small shift to lending could help fill some of the gap left by
Is there room only for the biggest, most aggressively-marketed funds in crisis-hit Europe?
Europe’s ten best-selling funds have attracted nearly a third of net sales across bonds, equity and mixed assets so far this year, as the grey bars show in the following chart from Thomson Reuters’ fund research firm Lipper.
LONDON (Reuters) – Central banks, among the most conservative asset managers in the world, are buying more stocks because of the paltry returns and negative yields available from top-rated sovereign bonds.
It is a move that may at first seem counterintuitive given that most are required to focus on capital preservation and take little risk to ensure quick access to national hard currency stockpiles in the event of a national emergency.
British investors are warming up to European equities, with the highest level of positive or rather positive views of the troubled bloc’s stocks in a year, an online survey by Baring Asset Management shows:
The biggest rise in sentiment was seen towards European equities, with over half (53%) of respondents saying they were now either ‘quite’ or ‘very’ favourable, up from 42% in the last survey and the most favourable they have been towards the European equity sector for a year.
LONDON (Reuters) – Top-grade corporate bonds – an investor bulwark in the financial and the euro zone crises – have become too expensive for some investors after a more than three-year bull run, and the focus will shift more to junk bonds for their fatter yields.
European high-yield bond funds, which offer a higher return for more risky debt, posted the biggest weekly inflow on record at $2.1 billion (1.2 billion pounds) in the week ended September 19, nearly 20 times more than the first week of the year, data from fund-tracker EPFR shows.