The 2016 Global Landscapes Forum, recently held in London, highlighted the growing interest in private sector investment in forestry and landscapes across the globe.
A new level has been reached in terms of interest in finance for development and environment, the event showed, proving that investment in forest land is here to stay. The attendees at this year’s event, entitled ‘Global Landscapes Forum: The Investment Case’, numbered around 300 and discussed topics ranging from forestry finance, forestry management across the globe and wood products.
High-yield exchange-traded funds (ETFs) struggled last year, in part because energy bonds took a beating when oil prices fell. Does that make an ETF that avoids energy bonds a good idea? We don’t think so.
At least one asset manager recently launched an ETF that invests in every high-yield sector except energy. The idea is to limit the risk of losses and default associated with low oil prices, which can make it hard for oil and gas companies to service their debt.
That may sound appealing to investors whose portfolios were hurt by plunging commodity prices in 2014 and 2015. But we think the approach is a short-sighted one.
Following the vote by UK citizens to officially leave the European Union, the S&P 500 lost 5.3% in 2 days (Jun. 24-27, 2016) before gaining back 4.5% for a total loss 1.1% through July 5. In those two down days, gold posted its best consecutive 2-day gain since Aug. 8-9, 2011. Gold is known as a safe haven and was worth its weight on those fearful days, but on a stand alone basis, it is just as volatile as equities and other commodities. Its 10-year annualized volatility is 19.5%, that is just slightly less than the 20.5% of the S&P 500 and 23.8% of the S&P GSCI. Moreover, gold’s volatility is higher than the equally weighted Dow Jones Commodity Index (DJCI) of 17.9% and the “smart beta” Dow Jones RAFI Commodity Index of 16.4%.
Please join us for a webcast and Q&A on Thursday, July 14 for an update on Asia-Pacific sovereign rating trends.
Key discussion points:
- The risks and challenges that Asia-Pacific sovereign ratings are facing compared to early 2016
- The risks that Brexit poses to sovereigns in the region
Speakers from Sovereign & International Public Finance Ratings team:
- Kim Eng Tan, Senior Director
- Kyran Curry, Director
Multi-manager hedge funds were designed to provide investors with access to a diversified portfolio of hedge fund strategies, seeking to take advantage of distinctive sources of alpha from each underlying hedge fund held within the portfolio. Having been introduced 30 years ago, multi-manager hedge funds were historically set-up as private partnerships, and today that is still their most prevalent form. Read more
BNY Mellon has partnered with FT Remark to produce a white paper titled Split Decisions, based on the survey responses of 400 senior executives at institutional investment firms (conducted by BNY Mellon) and 50 hedge fund executives (conducted by FT Remark). The key takeaway: Institutional investors are allocating more of their capital to alternative strategies, but not as a means of diversifying or mitigating risk, but in pursuit of strong returns in the low-interest-rate environment. Read more
Alternative mutual funds have several advantages over hedge funds that employ the same strategies: They’re more liquid, they’re more transparent, and they have lower fees. For retail investors that fall short of the “accredited” threshold ($200,000 in annual income or $1 million in liquid assets), alternative mutual funds and ETFs may represent their only opportunity for accessing alternative strategies, since non-accredited investors are prohibited from investing in hedge funds. Read more
As I write this, events and rumours in China have caused the FTSE 100, the index of the shares of the UK’s largest companies, to lose billions.
And the FTSE is by no means the laggard – developed stock markets across the world are losing money, and 2015 was a poor year for equities. Read more….
BEIJING, June 23 (Xinhua)– More rich Chinese are expected to send their assets overseas for better investment returns as the economy continues to open up, according to a report.
It is estimated that the proportion of Chinese individual assets to be allocated overseas will increase from the current 4.8 percent to about 9.4 percent in the next 5 years, with the Assets under Management (AuM) of overseas investment increasing to 13 trillion yuan (1.98 trillion U.S.dollars), according to the 2016 China Wealth Report jointly released on Wednesday by China Industrial Bank (CIB) and The Boston Consulting Group (BCG).
The U.K.’s decision to leave the European Union is still shooting shock waves across global financial markets, but one investor group remains unruffled: venture capitalists.
This is partly because of the numbers and partly because of the nature of venture investing. Read more…