Investment strategy correspondent, London
Ingrid's Feed
Oct 19, 2012
via Global Investing

Survival of the fattest?

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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.

Oct 9, 2012

Central banks, faced with paltry bond returns, buy more stocks

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.

Oct 2, 2012
via Global Investing

UK investors warm to European stocks

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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.

Oct 1, 2012

Analysis – Top-grade corporates pricey, investors move to junk

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.

Sep 17, 2012

Hedge funds back off banks as mutual funds dip in

LONDON (Reuters) – Hedge funds who have tried to make money out of European banks during the euro debt crisis are becoming frustrated with the sector’s erratic movements just as some bigger, and more patient, institutions are dipping tentatively back in.

European bank stocks have risen more than 25 percent since late July, fuelled by relief over new crisis-fighting plans, in particular the ECB’s latest announcements which have triggered hopes of a more lasting solution.

Aug 1, 2012
via Global Investing

Running for gold? The long-distance investor

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What are you best at? Running a sprint?  Jumping a few hurdles? Or would you rather gear up for the long-haul with a marathon?

With the London 2012 Olympics in full speed UK investors are going for the long-distance rather than try to follow in Usain Bolt’s speed-lightning sprints, a poll by Barclays Stockbrokers showed.

Jul 31, 2012

European funds slash equities, increase U.S. assets: poll

LONDON (Reuters) – European fund managers slashed their holdings of equities further in July, preferring the safety of cash and increasing their exposure to U.S. assets as a shield against the euro zone debt crisis, a Reuters poll showed on Tuesday.

Twenty asset managers based in continental Europe who were surveyed cut their equity holdings to 40.8 percent on average in July, the lowest level in at least nine years according to monthly Reuters polls, from 42.2 percent in June.

Jul 31, 2012

Real estate bouncing back from investor pariah status

LONDON (Reuters) – Treated by many as a pariah after the U.S. subprime collapse triggered the 2007 global financial crisis, real estate is increasingly back in favour with insurance, pension and sovereign wealth funds.

The evaporation of interest rates on high-quality government bonds is encouraging asset managers to look again at prime real estate properties and stocks, where they find returns far outshooting so-called “safe” sovereigns.

Jul 31, 2012

Analysis: Real estate bouncing back from investor pariah status

LONDON (Reuters) – Treated by many as a pariah after the U.S. subprime collapse triggered the 2007 global financial crisis, real estate is increasingly back in favor with insurance, pension and sovereign wealth funds.

The evaporation of interest rates on high-quality government bonds is encouraging asset managers to look again at prime real estate properties and stocks, where they find returns far outshooting so-called “safe” sovereigns.

Jul 18, 2012
via Global Investing

Optimism of the $5 mln+ in Spain, Ireland

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Crisis, what crisis?

Wealthy investors across Europe are confident about the future of the euro zone and the efficiency of unpopular austerity policies, with the rich in bailed-out Ireland and Spain topping the list, according to a survey published by J.P. Morgan Private Bank on Wednesday. The study, conducted in May and June, said:

High Net Worth investors in Spain, Ireland and the UK were found to have the most optimistic outlook, with 92 per cent, 90 per cent and 85 per cent respectively believing the Eurozone will either manage to avert large defaults and is rewarded for stringent austerity, or one that survives but will look different than the current structure.