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  • Lesson from Germany: the value of hybrid property | Thinking Aloud
    increase the value of the investment considerably bringing it into line with the kind of size that institutional investors need We believe investors are in some ways like those intrepid naturalists who foray into unexplored cloud forests classifying every bird beetle and butterfly they find by family and species They love to identify the existence of new asset classes and then to split them into various sub classes But this focus on classification can be excessive at least in the world of investment Dividing property into a number of discrete types such as office retail industrial and residential can result in missed opportunities In investment as in nature it is sometimes the strange hybrids that are strongest as any old time gold prospector who relied on mules to get his heavy treasure the long way back into town could have testified Important Information Investments in property may carry additional risk of loss due to the nature and volatility of the underlying investments Real estate investments are relatively illiquid and the ability to vary investments in response to changes in economic and other conditions is limited Property values can be affected by a number of factors including inter alia economic climate property market conditions interest rates and regulation Ref 30005 130416 1 Social media Download share or print this page Copy link Email link Print this page Share on twitter Share on LinkedIn Share on Google Share on Facebook Copy URL http www aberdeen asset ca en thinkingaloudus investment clarity lesson from germany the value of hybrid property Select Article URL Close Commercial Europe Property Residential Related Articles Like the US the UK needs infrastructure capital Asian property seeking excitement without danger Fighting off China s cold ECB action kitchen sink or leaky tap for hedge funds Creating value through effective stewardship Commercial Europe Property Residential Related Links Contact Us Learn more about Aberdeen This Content Component encountered an error Send us feedback First Name Last Name Email Address Comments Thinking aloud Internal Links About Thinking aloud Privacy and Cookies Policy Accessibility Help Keep in touch twitter LinkedIn google facebook More about Aberdeen Asset About Aberdeen Asset Management Aberdeen Asset Management Copyright 2015 IMPORTANT INFORMATION PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS The views and opinions expressed are provided for general information only and do not constitute specific tax legal or investment advice to or recommendations for any person We suggest that you consult your financial or tax advisor accountant or attorney with regard to your specific situation The details contained here are for information purposes only and should not be considered as an offer or solicitation to deal in any of the investments mentioned herein Aberdeen Asset Management AAM does not warrant the accuracy adequacy or completeness of the information contained herein and expressly disclaims liability for errors or omissions in such information and materials Any research or analysis used in the preparation of the information has been procured by Aberdeen for its own use and may have

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  • Paradox for emerging market positivity | Thinking Aloud
    revisions for 2016 across Europe the U S and emerging markets There s also an increasing pessimism among investors But it s important to distinguish what s happening in emerging markets from the rest of the world Emerging markets earnings growth was around 3 in 2015 in U S dollar terms but that figure doesn t accurately represent the entire emerging market spectrum If you strip out resource companies and look at earnings in local currency terms rather than in U S dollars the 2015 figure is actually likely to come in at over 10 And the trend is one of improvement Revenue growth is forecast at over 6 this coming year Factor in some operating leverage on expected cost control across our universe and earnings growth could possibly break the 10 mark in 2016 as well Chart 3 EM Revenue Growth Source UBS January 2016 For illustrative purposes only Chart 4 EM Earnings Growth Source UBS January 2016 For illustrative purposes only It would be naïve to downplay the severity of the headwinds facing emerging markets Yet it s equally detrimental to get caught up in the negativity and miss the broader more balanced picture Yes there are various problems in China but the country has various strengths in its favor too such as a very high savings rate and low levels of household debt It would be naïve to downplay the severity of the headwinds facing emerging markets Monetary policy may have weighed down on emerging market currencies but this has encouraged much needed adjustments in the trade accounts of many emerging countries And finally earnings are far more encouraging than they seem at first glance As veteran emerging market investors we ve been here many times before and take comfort in doing our extensive country and company first hand research But perhaps most importantly of all we ve learnt not to lose sight of the need for having a long term view Forecasts are offered as opinion and are not reflective of potential performance are not guaranteed and actual events or results may differ materially Important Information Foreign securities are more volatile harder to price and less liquid than U S securities They are subject to different accounting and regulatory standards and political and economic risks These risks are enhanced in emerging markets countries Ref 23211 050416 1 Social media Download share or print this page Copy link Email link Print this page Share on twitter Share on LinkedIn Share on Google Share on Facebook Copy URL http www aberdeen asset ca en thinkingaloudus investment clarity paradox for emerging market positivity Select Article URL Close Asia ex Japan Central banking Currencies Developed Developing Emerging Markets Equities Global Interest rates Monetary policy Related Articles Japan why faltering reforms shouldn t hide corporate achievements EM corporate bonds what happened to the apocalypse Asian property seeking excitement without danger Fighting off China s cold ECB action kitchen sink or leaky tap for hedge funds Asia ex Japan Central banking Currencies

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  • Fighting off China’s cold | Thinking Aloud
    not be universally high across the world But it s likely to be durable in a wide variety of countries including Germany and the UK where consumer confidence is buoyed by low unemployment and China China That s not my typo although Chinese economic growth is likely to slacken further household spending will be relatively resilient the slowdown will primarily come from a reduced growth in construction activities or fixed asset investment growth Against this backdrop attractive assets include listed equities private equity and property with exposure to mass consumables and mass consumption Think of a warehouse in Germany crammed with stock sold on the web think of a private equity investment in a restaurant chain with the company s debt used to fund a rollout of new outlets But don t think of a company making expensive luxury knitwear the crackdown on corruption in China the source of one third of the earnings of some luxury goods companies has hit the sales of such items It pays to be selective rather than investing in a particular theme without discernment You wouldn t buy an expensive scarf without trying it on and peering in the mirror you shouldn t buy into an investment without undertaking an even more rigorous analysis Important Information Foreign securities are more volatile harder to price and less liquid than U S securities They are subject to different accounting and regulatory standards and political and economic risks These risks are enhanced in emerging markets countries Ref 30005 070416 1 Social media Download share or print this page Copy link Email link Print this page Share on twitter Share on LinkedIn Share on Google Share on Facebook Copy URL http www aberdeen asset ca en thinkingaloudus investment clarity fighting off chinas cold Select Article URL Close Alternatives Asia ex Japan Economics Europe Latin America Related Articles Japan why faltering reforms shouldn t hide corporate achievements Like the US the UK needs infrastructure capital Asian property seeking excitement without danger All LPs are equal but some are more equal than others Lesson from Germany the value of hybrid property Alternatives Asia ex Japan Economics Europe Latin America Related Links Contact Us Learn more about Aberdeen This Content Component encountered an error Send us feedback First Name Last Name Email Address Comments Thinking aloud Internal Links About Thinking aloud Privacy and Cookies Policy Accessibility Help Keep in touch twitter LinkedIn google facebook More about Aberdeen Asset About Aberdeen Asset Management Aberdeen Asset Management Copyright 2015 IMPORTANT INFORMATION PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS The views and opinions expressed are provided for general information only and do not constitute specific tax legal or investment advice to or recommendations for any person We suggest that you consult your financial or tax advisor accountant or attorney with regard to your specific situation The details contained here are for information purposes only and should not be considered as an offer or solicitation to deal in any of the investments mentioned

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  • Ten golden rules of equity investing | Thinking Aloud
    finance Equities Long termism Simplicity Related Articles Paradox for emerging market positivity Market madness The ups and downs of U S share buybacks The sun a stick and a well for a scientific breakthrough Einstein s theory of relativity and investing Active management Behavioural finance Equities Long termism Simplicity Related Links Learn more about Aberdeen Contact Us Send us feedback First Name Last Name Email Address Comments Thinking aloud Internal Links About Thinking aloud Privacy and Cookies Policy Accessibility Help Keep in touch twitter LinkedIn google facebook More about Aberdeen Asset About Aberdeen Asset Management Aberdeen Asset Management Copyright 2015 IMPORTANT INFORMATION PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS The views and opinions expressed are provided for general information only and do not constitute specific tax legal or investment advice to or recommendations for any person We suggest that you consult your financial or tax advisor accountant or attorney with regard to your specific situation The details contained here are for information purposes only and should not be considered as an offer or solicitation to deal in any of the investments mentioned herein Aberdeen Asset Management AAM does not warrant the accuracy adequacy or completeness of the information contained herein and expressly disclaims liability for errors or omissions in such information and materials Any research or analysis used in the preparation of the information has been procured by Aberdeen for its own use and may have been acted on for its own purpose Some of the information may contain projections or other forward looking statements regarding future events or future financial performance of countries markets or companies These statements are only predictions opinions or estimates made on a general basis and actual events or results may differ materially This information does not provide financial or investment advice and does not take into account the particular financial circumstances of individual investors Before investing investors should seek their own professional advice Neither Aberdeen nor any of its employees associated group companies or agents has given any consideration to nor have they or any of them made any investigation of the investment objectives financial situation or particular need of the reader any specific person or group of persons Accordingly no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader any person or group of persons acting on any information opinion or estimate contained herein Aberdeen reserves the right to make changes and corrections to any information at any time without notice Third party websites provided by hyperlinks are completely beyond the control of AAM Accordingly AAM accepts no responsibility for the accuracy completeness and legality of the contents of such third party website or for any offers services and products contained therein AAM reserves the right to make changes and corrections to any information herein at any time without notice In the United States Aberdeen Asset Management AAM is the marketing name for the following affiliated

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  • Share on LinkedIn Share on Google Share on Facebook This Content Component encountered an error Send us feedback First Name Last Name Email Address Comments Thinking aloud Internal Links About Thinking aloud Privacy and Cookies Policy Accessibility Help Keep in touch twitter LinkedIn google facebook More about Aberdeen Asset About Aberdeen Asset Management Aberdeen Asset Management Copyright 2015 IMPORTANT INFORMATION PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS The views and opinions expressed are provided for general information only and do not constitute specific tax legal or investment advice to or recommendations for any person We suggest that you consult your financial or tax advisor accountant or attorney with regard to your specific situation The details contained here are for information purposes only and should not be considered as an offer or solicitation to deal in any of the investments mentioned herein Aberdeen Asset Management AAM does not warrant the accuracy adequacy or completeness of the information contained herein and expressly disclaims liability for errors or omissions in such information and materials Any research or analysis used in the preparation of the information has been procured by Aberdeen for its own use and may have been acted on for its own purpose Some of the information may contain projections or other forward looking statements regarding future events or future financial performance of countries markets or companies These statements are only predictions opinions or estimates made on a general basis and actual events or results may differ materially This information does not provide financial or investment advice and does not take into account the particular financial circumstances of individual investors Before investing investors should seek their own professional advice Neither Aberdeen nor any of its employees associated group companies or agents has given any consideration to nor have they or any of them made any investigation of the investment objectives financial situation or particular need of the reader any specific person or group of persons Accordingly no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader any person or group of persons acting on any information opinion or estimate contained herein Aberdeen reserves the right to make changes and corrections to any information at any time without notice Third party websites provided by hyperlinks are completely beyond the control of AAM Accordingly AAM accepts no responsibility for the accuracy completeness and legality of the contents of such third party website or for any offers services and products contained therein AAM reserves the right to make changes and corrections to any information herein at any time without notice In the United States Aberdeen Asset Management AAM is the marketing name for the following affiliated registered investment advisers Aberdeen Asset Management Inc Aberdeen Asset Managers Ltd Aberdeen Asset Management Ltd Aberdeen Asset Management Asia Ltd and Aberdeen Capital Management LLC each of which is wholly owned by Aberdeen Asset Management PLC Aberdeen is a U S registered

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  • send you relevant information and see which content you use We use targeting cookies to send you customised news content via email track which content you use target you with adverts on other websites By using our site you accept the use of Targeting cookies b Third party cookies There are a number of third parties which provide Aberdeen with content and functions on our website some of these providers will use cookies to ensure the particular areas on the site work The site also has Social Interaction links such as Facebook or Youtube Aberdeen do not control any cookies that may be sent when using these external websites For more information on these it is advised to check their cookie policies c How to withdraw consent to control and or delete cookies It is possible to remove cookies or block them from recording this information This is generally found within the Options menu then Privacy section of your particular browser Each browser is slightly different and constantly updating For more information consult the Help menu for your browser This information has been provided to show our commitment to legislation regarding cookie awareness so that you can understand what cookies we use and why we use them This ensures transparency in the data collected on you Further information Cookie Directive https ico org uk Information about cookies http www allaboutcookies org Internet Advertising Bureau A guide to behavioural advertising and online privacy http www youronlinechoices eu International Chamber of Commerce United Kingdom Information on the ICC UK cookie guide http www iccwbo uk pages privacy 6 Privacy and the Internet Aberdeen is committed to ensuring that your personal information is secure In order to prevent unauthorised access or disclosure we have in place appropriate physical electronic and managerial procedures to protect and secure your personal information a How we secure information transferring to our web server All forms containing sensitive personal information such as payment or bank details are transmitted after we authenticate your details to the web server using a secure form in which your details are encrypted using the most secure encryption level available You should notify us immediately if you have any reason to suspect that someone else may be using your details An encryption certificate can be viewed by double clicking on the padlock icon displayed within the web browser window when you are on a secure page b How we hold your personal information on our web server In most cases your personal information is passed immediately to our customer service centre without any personal information being stored on the web server at all Where it is necessary to store personal information temporarily any sensitive personal information is securely encrypted and stored away from publicly accessible areas of our web server c How we transmit your personal information to our customer service centre Once we have received your personal information the web server located in a secure area of the network immediately passes your personal

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  • herein Aberdeen Asset Management AAM does not warrant the accuracy adequacy or completeness of the information contained herein and expressly disclaims liability for errors or omissions in such information and materials Any research or analysis used in the preparation of the information has been procured by Aberdeen for its own use and may have been acted on for its own purpose Some of the information may contain projections or other forward looking statements regarding future events or future financial performance of countries markets or companies These statements are only predictions opinions or estimates made on a general basis and actual events or results may differ materially This information does not provide financial or investment advice and does not take into account the particular financial circumstances of individual investors Before investing investors should seek their own professional advice Neither Aberdeen nor any of its employees associated group companies or agents has given any consideration to nor have they or any of them made any investigation of the investment objectives financial situation or particular need of the reader any specific person or group of persons Accordingly no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader any person or group of persons acting on any information opinion or estimate contained herein Aberdeen reserves the right to make changes and corrections to any information at any time without notice Third party websites provided by hyperlinks are completely beyond the control of AAM Accordingly AAM accepts no responsibility for the accuracy completeness and legality of the contents of such third party website or for any offers services and products contained therein AAM reserves the right to make changes and corrections to any information herein at any time without notice

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  • Search Results
    making process Chinese circuit breakers Investors panicked today Shares in Shanghai fell 7 and triggered a market circuit breaker that halted trading It was the second time this week Investing responsibly One thing is already clear about next year The winds of change are set to blow through the asset management industry Vested interests will likely resist it We believe they are foolish to do so Yuan way to access China Events this summer showed that China is systemically important to the health of the global economy and financial markets August saw an environment of severe risk aversion Shortly after the VIX index which measures the implied volatility of the S P 500 index and is also known as the fear index reached its highest level since the 2011 European sovereign debt crisis A lesson in clarity for Draghi Communication may be becoming as critical as interest rates and quantitative easing when implementing effective monetary policy Other people s money What is the role of the financial sector The answer to this question would have been clear 50 years ago The monetary and fiscal dance Quantitative easing QE has likely become a household term to investors now As widespread as it has now become QE hasn t yet solved the world s financial issues which has left many wondering about the future of global monetary policy Crossing roads We have a constructive outlook on emerging markets for 2016 as we expect that economic growth will bottom in emerging markets currencies will stabilize inflation will roll over and interest rates will come down Earnings are poised to recover and valuations remain attractive Seeking alternatives We remain in a period described by central bankers as unconventional monetary policy This period of low interest rates and quantitative easing in all its guises could also accurately be described as a massive monetary experiment for which there is no instruction book Don t confuse bond market liquidity with demand On October 15 2014 something extraordinary happened The U S Treasury market went through a period of intense volatility with the yield on the benchmark 10 year bond experiencing a 37 basis point trading range which statistically speaking represents a seven sigma event To put this in perspective seven sigma events are only supposed to happen once every several billion years Yields who s negative in Europe As we approach the one year anniversary of Mario Draghi s announcement of quantitative easing QE in the Eurozone it seems an appropriate time to examine the effect it has had on yields in the region U S monetary policy Welcome to a new era The U S Federal Reserve Fed has finally started to raise interest rates Reasons to be cheerful Part 1 2 3 The last year has been a challenging one for holders of risk assets to put it mildly All of the main equity markets have struggled while investors in anything related to commodities or China are nursing particularly heavy losses Recent months seem to have brought a relentlessly depressing flow of news from a variety of sources Greece China rising interest rates emerging markets and commodity producers among others There s something about Rajan Asian markets are out of favor and have fallen under a shadow of uncertainty that is hard to dispel European property investing in valuable quirks U S property investors reluctant to look abroad may think that as long as they rent out property to some people who make things some people who sell things and some people who run the whole operation from behind their desks they will have a diversified domestic portfolio The 2016 economic weather forecast Here s a prediction 2016 economic forecasts are no more likely to be correct than they have been in 2015 Global business cycles converging at last The business cycles of the major economies are out of sync While the U S and the UK are several years into a sustained expansion the Eurozone economy has only recently begun to show signs of repair and the emerging markets are tipping into downturns of varying severity This lack of synchronicity has had profound repercussions for the global economic backdrop and the performance of asset markets over recent years but the picture may be starting to change in 2016 Property cycle Albert Einstein once said that the definition of insanity is doing the same thing over and over again and expecting a different result It goes without saying then that learning from our previous mistakes is the best way to avoid falling into the madness trap In the heady heights of a property boom though it is all too easy to ignore previous experiences QE2 Sailing into the unknown The latest inflation figures do not make happy reading for Mario Draghi the European Central Bank s ECB President They say all bad things come in threes The significance of certain ritual numbers is commonplace in many cultures The Chinese may hold the number eight with reverence but four is considered an unlucky number Norwegians dread the sight of the number nine and in most of the Western world thirteen spells bad news Trouble for emerging market currencies however came in threes this year Harvesting capital in U S farmland In the perpetual search for new sources of income investors can now consider one of the world s oldest industries agriculture Although land ownership has existed for more than 10 000 years it has only recently emerged as an investable asset class with an increasing amount of institutional investor interest similar to what the timber sector witnessed 15 to 20 years ago Investors want more out of governance About 90 of 300 global financial decision makers surveyed in a recent Aberdeen Asset Management study considered effective governance to be a critical driver of investment performance 1 Mario in Wonderland When Alice falls down the rabbit hole in Lewis Carroll s Alice s Adventures in Wonderland she finds herself in a world of paradoxes where you can believe as many as six impossible things before breakfast The end of Venezuela s Chavistas Venezuela s congressional elections this weekend are not so much a matter of whether President Nicolás Maduro s United Socialist Party PSUV loses but how much they lose by Can global high yield weather the storm Forecasters predict a cyclone in the U S and the global bond market is also preparing itself for stormy weather Where Silicon Valley meets Wall Street The U S technology industry has been having a good run and its path is now running tangent to Wall Street If you look at the performance of the tech heavy Nasdaq index and the broader S P 500 it seems that technology has been the only game in town this year Guide to the Chinese yuan There s been a lot of interest and some confusion over news that China s yuan will join an International Monetary Fund IMF club of reserve currencies Do you see what I see There are benefits to diverse ideas Funding Chinese infrastructure privately optimistic Perhaps more than any other emerging nation China has recognized the critical role that infrastructure plays in an economy s development An Indian summer for property Ever since having their fingers burned when the Indian property market opened up to foreign capital investment 10 years ago overseas investors have been wary and understandably so But times have changed and by continuing to avoid Indian property these investors risk losing out on potentially lucrative opportunities ESG comes to fixed income Environmental social and governance ESG is coming to fixed income At least at Aberdeen Asset Management it is China s financial markets the path toward liberalization In the second in a three part series on China Julien Calavia Analyst Hedge Funds explores the country s liberalization of its interest rate and derivatives markets Modi for manufacturing next stop Britain More than 70 000 people are expected to gather in Wembley Stadium on Friday November 13 to celebrate the Hindu festival of Diwali and to welcome a man they hope will launch India into the economic premier league European Central Bank all options on the table European Central Bank ECB President Mario Draghi opened the door to further easing of monetary policy when following the ECB s meeting on October 22 he announced that the degree of monetary policy accommodation will need to be re examined at our December monetary policy meeting Two important questions for the next few months are what form will further ECB easing take and what are the implications for the U S Federal Reserve Fed The race to raise rates Who will raise interest rates first the U S Federal Reserve Fed or the Bank of England BoE It s not quite a Usain Bolt versus Justin Gatlin esque fastest man on earth debate As rates have been so low for so long perhaps long distance runners Paul Tergat and Haile Gebrselassie are a better analogy with the rate hiking decision having more of the air of a marathon Biology could be simpler than we thought We are huge believers in the value of simplicity Unnecessary complexity wastes time Value of alts in suspenseful markets In the weeks before the U S Federal Reserve s Fed September monetary policy meeting there was genuine excitement over what the Fed might do For the first time since the credit crunch began it seemed there was a fighting chance for an interest rate rise A fly on the boardroom wall If you could have one superpower what would it be We all played this imaginary game for fun when we were younger but as equity investors we find it still has some relevance Interest rates lower for longer For quite some time we have all been wondering when interest rates in the U S will begin the process of normalization Forecasts for the past several years have predicted that rates will rise within a period of months only to be revised as rates stubbornly stay where they are Seven years after rates were cut to near zero we remain in a holding pattern of extremely low rates and it is hard to foresee when things will change In search of the Phillips curve The Phillips curve is the guiding light of the world s central bankers but it has lately been missing in action Man bites dog at the IMF What keeps the International Monetary Fund IMF awake at night Despite some of the alarmist headlines accompanying its new global forecasts earlier this month its central projections suggest not much Modi fying India The 21st century belongs to India Much ado about emerging markets The title of Shakespeare s sixteenth century play Much ado about nothing is now a common phrase that translates to making a big fuss out of something insubstantial How might this relate to current market noise on emerging markets Argentina there is no hand of God Things in Argentina aren t as bad as they were in 2001 But they re not far off Renminbi internationalization an opportunity for hedge funds For most of this year financial headlines coming out of China have been dominated by the performance of the country s stock markets However in our opinion those headlines represent the tip of the iceberg The first development worth looking at and the recent cause of much market disruption relates to attempts to internationalize the renminbi More marshmallows in the age of asset management If there is one issue I regard as crucial to successful investment it is the need for a long term approach When the credit crunch overtook us in 2008 we saw the disastrous consequences of a short term fast buck mentality in the markets It was one of the starkest lessons ever given to investors but many failed to learn from it The Seven Deadly Sins of Multi Asset Investing Investing is an activity that s rife with opportunity to fall into bad habits be led astray or make decisions for the wrong reasons Alternatives more than just an alternative One thing is for sure the global markets are rarely ever boring In their quest to achieve their return objectives investors are becoming more vigilant about the risks that accompany their investments The investment landscape continues to evolve and we see a definite shift underway for how risk is being evaluated and managed within a portfolio Mexico gradually moving forward When Mexico s President Peña Nieto looks at his approval ratings he might wonder whether the Día de Muertos Day of the Dead festival is prophetic The peso has been whipsawed over the summer a much hyped auction of oil exploration licenses failed to live up to expectations and the central bank is sounding increasingly agitated in its communication Add the president s own woes approval ratings have dropped 20 since the start of his term in 2012 and things seem bleak for him and his country But look a little deeper and it becomes clear that things in Mexico aren t half as bleak as they seem Looking out for icebergs in the global economy The story of the Titanic shows us that despite their size icebergs can be surprisingly difficult to spot That s because while all may appear calm on the surface danger may lurk beneath the waves Spotting risks in the global economy can be just as tough and our tools for finding potential hazards even less evolved A home run for winning cities Human needs have always been the best drivers of change and innovation And finding somewhere safe and comfortable to live is one of our most essential needs Therefore it comes as no surprise that the success of residential property at a global scale is inextricably linked to the needs of an expanding population to have somewhere that they can call home China matters Despite encouraging signs of recovery at home U S policymakers are clearly worried about what s going on overseas At the top of their list of concerns is China All consuming Asia Did you know that Chinese online shoppers spent around 5 7 billion on a single day in November last year That more and more well heeled Indian consumers prefer to buy their tea from a pharmacy Or that urban Thais visit a hypermarket at least once a week and spend around half their monthly bills on groceries Two routes for Zambia and Nigeria One route is wiser than the other What often sets countries apart is not so much whether they are hit by a crisis all are but how they react U S interest rates it s complicated The U S Federal Reserve Fed left interest rates at historic lows following this month s policy meeting Why After all the U S economy is in good shape 2 9 million jobs have been created over the past year This has pushed the unemployment rate down to 5 1 a seven year low and in the view of many policy makers close to full employment Housing sales have rebounded and consumer spending the main driver of the economy has remained robust as wage growth has begun to pick up Fed Chair Yellen herself even declared that we are looking at a U S economy that has been performing well and impressing us by the pace at which it s creating jobs and the strength of domestic demand Not game over for China If popularity has its price then major investors in China are now paying those consequences Chinese stock markets have taken a plunge and continue to face a roller coaster path of sorts There s no telling how long the ride is or what turns lie ahead which means investors have been increasingly concerned over the uncertainty Financial services place too much faith in flawed risk models Life is full of things that work in theory but not in practice Sadly the way the financial services industry assesses risk is one such example And ultimately our one dimensional approach to risk could well sow the seeds of the next crisis Stay calm and learn from the All Blacks rugby team I ve often remarked on the similarity between what team players have to do to win on the sports field and the strategies businesses need to adopt to achieve commercial success But the parallel has been brought home to me more forcibly by reading James Kerr s book about the legendary New Zealand rugby team entitled Legacy What the All Blacks Can Teach Us About the Business of Life Some perspective on China In the past few months everyone has begun to doubt the Chinese economic miracle and wonder if it is built on the same sand as the boom in the West during the last decade A new breed of asset class No one really knows where to put investment dollars anymore At the most basic level investors tend to be most fraught with choosing between equities and fixed income Are they looking for capital gains Or are they looking for income and a safe haven for their portfolio Better the devil the Fed knows It was only a matter of weeks ago that a September interest rate rise from the U S Federal Reserve Fed seemed more than likely The balance of probability has now shifted to the Fed pushing back the decision yet again Quantitative easing s evil twin Quantitative tightening QT the selling of fixed income assets by several emerging market EM central banks as they run down their foreign exchange reserves is one of the latest market buzzwords And it could have important implications for investors Unexpected impact of unconscious biases Chief Investment Officer Anne Richards held a Backroom 2 Boardroom luncheon in Aberdeen Asset Management s New York City office in September 2015 Here are her thoughts on why diverse teams make better decisions Not all bonds are alike Old habits die hard

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