The correlation between equities and bonds is an important input for asset allocators. For the last 20 years, the correlation between equities and bond yields has been positive (falling stock prices typically coincide with a decrease in bond yields). This has given rise, during the 21st century, to a risk on / risk off mentality, whereby the risk-off (safe-haven) trade is to…
CalPERS traded $55 billion in fixed income securites last financial year as it implemented its new internal structure apportioning fixed income assets across three groups: treasuries, spread and high yield. Each of the new segments in the board-approved structure has defined purpose and role.
The Global Market Index’s expected risk premium ticked higher in September, reaching an annualized 4.7%, up slightly from last month’s estimate. Compared with a year earlier, however, the projected long-term risk premia for GMI has slipped from a 5.0% estimate at this point in 2018 (see table below). GMI is an unmanaged market-value-weighted portfolio that […]
CIO Marcus Frampton discusses the implications of each asset class while preparing for a new strategic asset allocation.
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Exclusive: species added to at-risk list as numbers fall, but hake and plaice are boomingConsumers are being urged to steer clear of North Sea cod and wild Atlantic salmon – and eat more herring, plaice and hake – in a fresh attempt to alleviate pressure on threatened stocks.The Marine Conservation Society (MCS) will publish its updated 2019 Good Fish Guide this week, setting out which is the…
'New strategic asset allocation opts for stability, resiliency and low volatility.'
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After meandering for a month, emerging-market bonds came alive in October’s first week of trading. This slice of global fixed-income securities posted the strongest increase last week for the major asset classes, based on a set of exchange traded funds. VanEck Vectors JP Morgan Emerging Market Local Currency Bond (EMLC) surged 1.9% for the trading […]