The 2018 outlook for fixed income: Balancing the secular and cyclical trends. For institutional use only. Not for distribution to retail investors.
|
|
- Randall Bradford
- 6 years ago
- Views:
Transcription
1 The 2018 outlook for fixed income: Balancing the secular and cyclical trends
2 Fixed income market and economic update 2
3 Executive summary Cyclical uptick in the midst of the secular trends Positive performance in risk assets Monetary policy likely to become restrictive in 2019 Inflation will likely remain below target Central bank policy is a key risk Subdued long-term asset return forecasts 3
4 A probabilistic view of our growth outlook Strong global fundamentals deliver a positive growth assessment for % 11% 3% 10% 6% 22% 19% 20% 19% Cyclical acceleration Trend Probability 31% 45% 55% 38% Slowdown Recession* 37% 33% 37% 0% 15% U.S. EU Japan China * For China Hard landing. Source: Vanguard. 4
5 U.S. experiencing cyclical upswing More than just unemployment: U.S. economy is growing beyond potential 21,000 Real GDP ($ billion) 20,000 19,000 18,000 17,000 16,000 15,000 14,000 Previous potential GDP estimates U.S. economy beyond potential U.S. potential GDP 13,000 12, Q1 2003Q1 2006Q1 2009Q1 2012Q1 2015Q1 2018Q1 2021Q1 2024Q1 2027Q1 CBO Potential 2008 CBO Potential 2012 CBO Potential 2017 NIPA Real GDP Growth Source: Vanguard. 5
6 Inflation panic seems unwarranted Inflation is below target 77% of the time since Core PCE inflation YoY Inflation target Inflation Temporary upturn of inflation in Source: Vanguard. 6
7 Projected global fixed income ten-year return outlook VCMM-simulated distribution of expected average annualized nominal return of total fixed income market as of June 2010 and September 2017 Global bonds 70% U.S./30% global ex-u.s. 25% 20% Current 10-year outlook Outlook as of June % Probability 10% 5% 0% Less than 1% 1 to 1.5% 1.5 to 2% 2 to 2.5% 2.5 to 3.0% 3.0 to 3.5% 3.5 to 4.0% 4.0 to 4.5% 4.5 to 5% More than 5% 10-year annualized return IMPORTANT: The projections or other information generated by the VCMM regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Distribution of return outcomes from VCMM, derived from 10,000 simulations for global equity returns and fixed income returns in USD. Simulations as of September 30, Results from the model may vary with each use and over time. For more information, please see the Important information slide. Note: Figure displays projected range of returns for a portfolio of 70% U.S. bonds and 30% ex-u.s. bonds, rebalanced quarterly. For details, see Vanguard s Economic and Investment Outlook (Davis, Aliaga-Diaz, Westaway, Wang, Patterson, and Ahluwalia 2016). Source: Vanguard. 7
8 Investment-grade corporates: Excess return forecast modest Investment-grade option-adjusted spreads (OAS) are trading at the tight end of the range OAS (bps) NBER recessions OAS (bps) Note: The top panel shows the option-adjusted spread (OAS) for global investment-grade corporate bonds from January 1990 through February Sources: Barclays Live, Bloomberg Barclays Global Aggregate Corporate Index. 8
9 Projected global equity ten-year return outlook VCMM simulated distribution of expected average annualized nominal return of global equity market as of June 2010 and September 2017 Global equity 60% U.S./40% global ex-u.s. 40% 30% Current 10-year outlook Outlook as of June 2010 Probability 20% 10% 0% Less than 0% 0 to 3% 3 to 6% 6 to 9% 9 to 12% 12 to 15% 15 to 18% More than 18% 10-year annualized return IMPORTANT: The projections or other information generated by the VCMM regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Distribution of return outcomes from the VCMM are derived from 10,000 simulations for global equity returns in USD. Simulations are as of September 30, Results from the model may vary with each use and over time. For more information, please see the Important information slide. Source: Vanguard. Notes: Figure displays projected range of potential returns for portfolios of 60% U.S./40% ex-u.s. equities unhedged in USD, rebalanced annually. For details on benchmarks used for historical returns, see Indexes Used in Our Historical Calculations, on page 5 of 2017 Economic and Market Outlook: Stabilization, Not Stagnation (Davis et. al 2016). 9
10 Bonds can provide ballast in an equity bear market Median return of various asset classes during the worst decile of monthly equity returns % 0% 2% -2% 4% -4% 6% -6% 8% -8% 10% -10% U.S. equities Emerging market equities REITs Dividend stocks Commodities High-yield bonds Emerging market bonds Hedge funds Corporate bonds Treasury bonds Non-U.S. bonds (unhedged) Non-U.S. bonds (hedged) Muni bonds Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Sources: Vanguard calculations based on data from Thomson Reuters Datastream, Bloomberg Barclays, HFRI, MSCI, FTSE, CRSP, S&P, and Dow Jones. Notes: U.S. stocks represented by Dow Jones U.S. Total Stock Market Index through April 2005, MSCI US Broad Market Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high-yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment-grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund-weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-usd Bond Index. The Dow Jones U.S. Select Dividend Index starts in January 1992; Bloomberg Barclays EM USD Aggregate Index starts in January 1993; hedge fund data start in 1994, and Bloomberg Barclays Global Aggregate ex USD Bond Index starts in January All data provided through December 31,
11 Vanguard Fixed Income Group 11
12 Vanguard fixed income management Our three core strengths support an enduring competitive advantage 1 Seasoned, stable team Enables competitive returns without taking undue risk 2 Low costs and scale 3 Disciplined, risk-controlled process * Vanguard is client-owned. Client-owned means that fund shareholders own the funds, which, in turn, own Vanguard. 12
13 A global organization, a deep and credentialed team Global centers tap local expertise London 85 MBAs Scottsdale Malvern Hong Kong 150+ professionals* 4 86 PhDs CFA charterholders Strategic, integrated support Melbourne Fixed Income Group Risk Management Group Independent risk assessment Investment Strategy Group Macroeconomic analysis Source: Vanguard, as of December 31, Includes members of Risk Management Group Quantitative team. 13
14 2018 initiatives α Globalization Alpha Innovation/tech Enhanced capabilities Broadening fund lineup Building a high-yield team New emerging markets team at full strength Increased scale and breadth of mortgage capability Globalizing rates process Active Core o Launched March 2016 Active Emerging Markets o Launched March 2016 Active Global Credit o Launched September
15 Bonds continue to play an important role in portfolio diversification Secular trends Cyclical uptick Monetary policy likely to become restrictive in early 2019 Central bank policy is a key risk Inflation will likely remain below inflation targets in the long term Long-term asset return forecasts subdued Positive performance in risky assets 15
16 Important information IMPORTANT: The projections and other information generated by the Vanguard Capital Markets Model regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. VCMM results will vary with each use and over time. The VCMM projections are based on a statistical analysis of historical data. Future returns may behave differently from the historical patterns captured in the VCMM. More important, the VCMM may be underestimating extreme negative scenarios unobserved in the historical period on which the model estimation is based. The Vanguard Capital Markets Model is a proprietary financial simulation tool developed and maintained by Vanguard s primary investment research and advice teams. The model forecasts distributions of future returns for a wide array of broad asset classes. Those asset classes include U.S. and international equity markets, several maturities of the U.S. Treasury and corporate fixed income markets, international fixed income markets, U.S. money markets, commodities, and certain alternative investment strategies. The theoretical and empirical foundation for the Vanguard Capital Markets Model is that the returns of various asset classes reflect the compensation investors require for bearing different types of systematic risk (beta). At the core of the model are estimates of the dynamic statistical relationship between risk factors and asset returns, obtained from statistical analysis based on available monthly financial and economic data from as early as Using a system of estimated equations, the model then applies a Monte Carlo simulation method to project the estimated interrelationships among risk factors and asset classes as well as uncertainty and randomness over time. The model generates a large set of simulated outcomes for each asset class over several time horizons. Forecasts are obtained by computing measures of central tendency in these simulations. Results produced by the tool will vary with each use and over time. All investing is subject to risk, including possible loss of principal. Bond funds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Diversification does not ensure a profit or protect against a loss. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings. U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Investments in stocks or bonds issued by non-u.s. companies are subject to risks including country/regional risk and currency risk. CFA and Chartered Financial Analyst are registered trademarks owned by CFA Institute The Vanguard Group, Inc. All rights reserved. FIXINCJH_
Vanguard s economic & market outlook
Vanguard s economic & market outlook Q3 2016 Paul Bosse, CFA Vanguard Investment Strategy Group A world of extremes 2 Three secular forces & the key megatrend Technology Demographics The future of employment
More informationGlobal macro matters Rising rates, flatter curve: This time isn t different, it just may take longer
Global macro matters Rising rates, flatter curve: This time isn t different, it just may take longer Vanguard Research Joseph Davis, Ph.D. September 18 Authors: Roger Aliaga-Díaz, Ph.D.; Qian Wang, Ph.D.;
More informationVanguard: The yield curve inversion and what it means for investors
Vanguard: The yield curve inversion and what it means for investors December 3, 2018 by Joseph Davis, Ph.D. of Vanguard The U.S. economy has seen a prolonged period of growth without a recession. As the
More informationGlobal macro matters From reflation to inflation: What s the tipping point for portfolios?
Global macro matters From reflation to inflation: What s the tipping point for portfolios? Vanguard research Joseph Davis, Ph.D. May 2018 Roger Aliaga-Díaz, Ph.D., Qian Wang, Ph.D., Andrew Patterson, CFA,
More informationVanguard economic and market outlook for 2018: Rising risks to the status quo. Vanguard Research December 2017
Vanguard economic and market outlook for 2018: Rising risks to the status quo Vanguard Research December 2017 Market consensus has finally embraced the low secular trends Note: The Group of Seven (G7)
More informationThe power of low cost diversified investing
The power of low cost diversified investing Robin Bowerman Head of Corporate Affairs, Vanguard Australia YOUR SELF-MANAGED SUPER SHOW event partner The case for indexing When trillions of dollars are managed
More informationThe value of managed account advice
The value of managed account advice Vanguard Research September 2018 Cynthia A. Pagliaro According to our research, most participants who adopted managed account advice realized value in some form. For
More informationVanguard research August 2015
The buck value stops of managed here: Vanguard account advice money market funds Vanguard research August 2015 Cynthia A. Pagliaro and Stephen P. Utkus Most participants adopting managed account advice
More informationPension risk: How much are you really taking?
Pension risk: How much are you really taking? Vanguard research June 2013 Executive summary. In May 2012, Vanguard conducted the second of a planned series of surveys of corporate defined benefit (DB)
More informationCan We Lower Portfolio Volatility and Still Meet Equity Return Expectations?
Can We Lower Portfolio Volatility and Still Meet Equity Return Expectations? Richard Yasenchak, CFA Senior Vice President, Client Portfolio Manager, INTECH FOR INSTITUTIONAL INVESTOR USE/NOT FOR PUBLIC
More informationNavigating the ETF Landscape
Navigating the ETF Landscape Daniel Prince, CFA Director, Head of ishares Product Consulting May 3, 2017 Agenda What are Exchange Traded Funds (ETFs) What is driving ETF usage ETF trends and innovation
More informationVanguard Total Stock Market ETF
Vanguard Product Summary Seeks to track the performance of the CRSP US Total Market. Large-, mid-, and small-cap equity diversified across growth and value styles. Employs a passively managed, index-sampling
More informationVanguard Inflation-Protected Securities Fund
Vanguard - Product Summary Invests primarily in Treasury inflation-protected securities. Seeks inflation protection and income consistent with Treasury inflation-protected securities. Principal and interest
More informationVolatility-Managed Strategies
Volatility-Managed Strategies Public Pension Funding Forum Presentation By: David R. Wilson, CFA Managing Director, Head of Institutional Solutions August 24, 15 Equity Risk Part 1 S&P 5 Index 1 9 8 7
More informationVanguard Developed Markets Index Fund
Vanguard Product Summary Seeks to track FTSE All Cap ex. International equity diversified across growth and value styles. markets in Canada and the major markets of Europe and the Pacific region. Passively
More informationThe Myth of Diversification: Risk Factors vs. Asset Classes
The Myth of Diversification: Risk Factors vs. Asset Classes Sébastien Page, CFA Executive Vice President April 2011 PIMCO Canada will retain PIMCO LLC as a subadvisor. PIMCO Canada Corp., 120 Adelaide
More informationVanguard s framework for constructing globally diversified portfolios
Vanguard s framework for constructing globally diversified portfolios Vanguard Research April 2017 Scott J. Donaldson, CFA, CFP ; David J. Walker, CFA; Kimberly Stockton; James Balsamo; Yan Zilbering When
More informationMacro Diversification: Navigating the Shortand Long-Term Asset Allocation Decisions Critical for Investment Success
June 19, 2017 Macro Diversification: Navigating the Shortand Long-Term Asset Allocation Decisions Critical for Investment Success Brian D. Singer, CFA Partner, Portfolio Manager FOR INSTITUTIONAL USE ONLY
More informationDesigning Outcome-Focused Defined Contribution Plans: Building Sustainable Income for Retirees
Your Global Investment Authority Designing Outcome-Focused Defined Contribution Plans: Building Sustainable Income for Retirees November 2012 Stacy L. Schaus, CFP Executive Vice President, Defined Contribution
More informationVanguard commentary April 2011
Oil s tipping point $150 per barrel would likely be necessary for another U.S. recession Vanguard commentary April Executive summary. Rising oil prices are arguably the greatest risk to the global economy.
More informationRecessions and balanced portfolio returns
Recessions and balanced portfolio returns Vanguard investment perspectives April 2012 When a recession seems imminent, investors may be tempted to take a defensive approach by shifting away from stocks.
More informationINVESTMENT PLAN. Sample Client. For. May 04, Prepared by : Sample Advisor Financial Consultant.
INVESTMENT PLAN For Sample Client May 04, 2012 Prepared by : Sample Advisor Financial Consultant sadvisor@loringward.com Materials provided to approved advisors by LWI Financial Inc., ( Loring Ward ).
More informationQuantitative Investment: From indexing to factor investing. For institutional use only. Not for distribution to retail investors.
Quantitative Investment: From indexing to factor investing For institutional use only. Not for distribution to retail investors. 1 What s the prudent portfolio mix? It depends Objective Investment approach
More informationVanguard Institutional Index Fund
Vanguard Institutional Product Summary Seeks to track the performance of the Standard & Poor s 500. U.S. large-cap equity diversified across growth and value styles. Passively managed, full-replication
More informationDrexel University Retirement Plan
Drexel University Retirement Plan 23A 7% is the average saving rate at Vanguard. Source: Vanguard, How America Saves 2016. Vanguard recommends saving 12% 15%. Retirement Income Calculator How much
More informationBrexit and Market Implications Special Commentary & Webinar
Brexit and Market Implications Special Commentary & Webinar June 27, 2016 SR# 904360 Today s Speakers Envestnet PMC Zachary Karabell Head of Global Strategy, Envestnet As Head of Global Strategy, Mr. Karabell
More informationExchange Traded Fund Strategies
Exchange Traded Fund Strategies 221 W. 6 th Street, Suite 1210 Austin, Texas 78701 Phone 512.477.3110 Fax 512.472.1046 Teresa Finney Senior Vice President, Investments Richard A. Funk, CFP First Vice President,
More informationWhat does the crisis of 2008 imply for 2009 and beyond?
What does the crisis of 28 imply for 29 and beyond? Vanguard Investment Counseling & Research Executive summary. The financial crisis of 28 engendered severe declines in equity markets and economic activity
More informationVanguard research July 2014
The Understanding buck stops the here: hedge return : Vanguard The impact money of currency market hedging funds in foreign bonds Vanguard research July 214 Charles Thomas, CFA; Paul M. Bosse, CFA Hedging
More informationVanguard s Economic and Market Outlook
Vanguard s Economic and Market Outlook Agenda U.S. and Canadian economies: Joined at the hip Economic and asset return expectations Inflation and commodities a concern? Where Canada diverges Europe impact:
More informationPortfolio Strategist Update from The Dreyfus Corporation
Portfolio Strategist Update from The Dreyfus Corporation Active Opportunity ETF Portfolios As of Dec. 31, 2017 Ameriprise Financial Services, Inc. (Ameriprise Financial) is the investment manager for Active
More informationEquity Markets in a Late-Cycle Environment: Balancing Opportunity and Risk
Equity Markets in a Late-Cycle Environment: Balancing Opportunity and Risk Speaker: Olivia Engel, CFA Senior Managing Director, CIO, Active Quantitative Equity State Street Global Advisors 2 Content What
More informationInvestment Perspectives. From the Global Investment Committee
Investment Perspectives From the Global Investment Committee Introduction Domestic equities continued to race ahead during the fourth quarter of 2014 amid spikes in volatility, dramatic declines in oil
More informationPension derisking: Diversify or hedge?
Pension derisking: Diversify or hedge? Vanguard research September 2012 Executive summary. One of the prime tenets of investing is that diversification reduces risk. It verges on an undeniable law of nature.
More informationVanguard Global Capital Markets Model
Vanguard Global Capital Markets Model Research brief March 1 Vanguard s Global Capital Markets Model TM (VCMM) is a proprietary financial simulation engine designed to help our clients make effective asset
More informationVanguard FTSE Europe ETF
Vanguard Product Summary Seeks to track the performance of the Developed All Cap Index. Targets an common stocks. Diversified across developed markets. Employs a passively managed, full-replication strategy.
More informationDecember 2014 Economic Outlook. All data as of November 30, 2014 unless otherwise noted.
December 2014 Economic Outlook All data as of November 30, 2014 unless otherwise noted. -4-2 0 2 4 6 8 10 12 14 16 18 20 22 24 Economic Outlook and Capital Markets Slow growth has characterized the current
More informationShort exposure to US equities
Portfolio performance The All Asset Fund aims to serve as a differentiated asset allocation strategy. It focuses on third pillar assets in seeking three key outcomes: 1) long-term real return consistent
More informationCapital Markets Outlook 100 LOWDER BROOK DRIVE SUITE 1100 WESTWOOD MA FAX
M E K E T A I N V E S T M E N T G R O U P 00 LOWDER BROOK DRIVE SUITE 00 WESTWOOD MA 02090 78 47 3500 FAX 78 47 34 Investors are faced with three primary issues in the near-term: ) historically low bond
More informationBeyond the usual suspects: Diversified sources of income
J.P. Morgan Asset Management Research Summit 2011 Passport to opportunity Beyond the usual suspects: Diversified sources of income Mariana Connolly, CFA Client Portfolio Manager, U.S. Equity Group Anne
More informationJanuary market performance. Equity Markets Price Indices Index
Global Central Banks continue to lower interest rates. The RBA cuts the cash rate by 25bp to 2.25% (February 2015). The ECB finally announces Quantitative Easing 60b per month. Oil prices declined again
More informationFear of risk or risk of fear
ANDREW COLE SENIOR INVESTMENT MANAGER, INTERNATIONAL MULTI ASSET 7 September 2017 % IT HAS BEEN A GOOD TIME TO BE PASSIVE 14 50% EQUITIES/50% BONDS IN 12 10 8 6 4 2 0 Source: Thomson Reuters. Performance
More informationFourth Quarter 2015 Market Review. March 2016
Fourth Quarter 2015 Market Review March 2016 Agenda Market Review Investment Outlook and Portfolio Positioning 2 2015 was a Challenging Year for Investment Returns Last year was the first time since 2001
More informationSUMMARY OF ASSET ALLOCATION STUDY AHIA August 2011
SUMMARY OF ASSET ALLOCATION STUDY AHIA August 2011 Expected Return 9.0% 8.5% 8.0% 7.5% 7.0% Risk versus Return Model 3 Model 2 Model 1 Current 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% Expected Risk Return 30%
More informationPIMCO s Asset Allocation Solution for Inflation-Related Investments
Inflation Response Multi-Asset Strategy Your Global Investment Authority Product Profile September 2011 PIMCO s Asset Allocation Solution for Inflation-Related Investments In an evolving, multi-speed world,
More informationVanguard s approach to target-date funds
Vanguard s approach to target-date funds Vanguard research November 2012 Executive summary. Target-date funds (TDFs) are designed to address a particular challenge facing many retirement investors: constructing
More informationSummary of Asset Allocation Study AHIA May 2013
Summary of Asset Allocation Study AHIA May 2013 Portfolio Current Model 1 Model 2 Model 3 Total Domestic Equity 35.0% 26.0% 24.0% 31.0% Total Intl Equity 15.0% 18.0% 17.0% 19.0% Total Fixed Income 50.0%
More informationJPMorgan Funds Asia Pacific Income Fund. August 2018
August 2018 AVAILABLE FOR PUBLIC CIRCULATION Important information 1. The Fund invests primarily in income generating securities of countries in the Asia Pacific region (excluding Japan), and may invest
More informationRISING RATES WHAT YOU NEED TO KNOW
RISING RATES WHAT YOU NEED TO KNOW Although rising interest rates may primarily challenge those bond investments with the highest sensitivity to interest rates, we believe many parts of the global fixed
More informationTarget Funds. SEMIANNual REPORT
SEMIANNual REPORT November 30, 2017 T. Rowe Price Target Funds The funds invest in a diversified portfolio of T. Rowe Price mutual funds, offering a professionally managed, age-appropriate mix of stocks
More informationTactical Income ETF. Investor Presentation N ORTHC OAST I NVESTMENT A DVISORY T EAM NORTHCOASTAM. COM
Tactical Income ETF Investor Presentation N ORTHC OAST I NVESTMENT A DVISORY T EAM 203.532.7000 INFO@ NORTHCOASTAM. COM NORTHCOAST ASSET MANAGEMENT An established leader in the field of tactical investment
More informationTarget Retirement Performance Update
Target Retirement Update Q1 2017 CIT Strategy Highlights As of March 31, 2017 The State Street Target Retirement Collective Trust Strategies posted quarterly returns ranging from +2.44% (Income Strategy)
More informationThe credit spread barbell: Managing credit spread risk in pension investment strategies
The credit spread barbell: Managing credit spread risk in pension investment strategies Vanguard Research February 2018 Brett B. Dutton, CFA, FSA, lead investment actuary, Vanguard Institutional Advisory
More informationPIMCO: The New Neutral
PIMCO: The New Neutral Philanthropy Summit 2015 Investing in the New Neutral world April 2015 PIMCO Australia Pty Ltd ABN 54 084 280 508 AFS Licence 246862 Level 19, 363 George St. Sydney, NSW 2000 telephone:
More informationLiquidity Management: Beyond Quantitative Easing
Liquidity Management: Beyond Quantitative Easing June 2014 Agenda 1. Assessing Risk: Current Market Conditions a. Global Macroeconomics b. Monetary Policy c. Quantitative Easing (QE) d. Asset Bubbles e.
More informationBArings VIEWPOINTS February 2018
BArings VIEWPOINTS February 2018 Highlights Investor appetite for Emerging Markets (EM) equities has strengthened after several challenging years. We believe the strong earnings outlook, attractive valuations
More informationVanguard money market funds Vanguard Research Brief October 2018
Equity factor-based investing: The A practitioner s buck stops guide here: Vanguard money market funds Vanguard Research Brief October 218 Key points n Equity factor-based investing is a form of active
More informationPIMCO Global Optima Index
PIMCO Global Optima Index Dynamically Blending Global Equity and U.S. Fixed Income Markets to Help Deliver Upside Growth Potential Issued by American General Life Insurance Company (AGL), an American International
More informationMunicipal Bond ETF Applications. Solomon Stewart, CFA ishares Fixed Income Strategy
Municipal Bond ETF Applications Solomon Stewart, CFA ishares Fixed Income Strategy Municipal Bond Market Update FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION. Jan-07 Jun-07 Nov-07 Apr-08
More informationMarket Review and Outlook. Todd Centurino, CFA
Market Review and Outlook Todd Centurino, CFA Q1 2017 Global Economy: On the Upswing Ranked Returns (%) Emerging Market Equities 11.40 European Equities 7.40 US Equities 6.10 Global Bonds 2.00 US Treasuries
More informationVanguard s approach to target-date funds
Vanguard s approach to target-date funds Scott J. Donaldson, CFA, CFP Francis M. Kinniry Jr., CFA Roger Aliaga-Díaz, Ph.D. Andrew J. Patterson, CFA Target-date funds (TDFs) are designed to help long-term
More informationMeasuring Risk in Canadian Portfolios: Is There a Better Way?
J.P. Morgan Asset Management (Canada) Measuring Risk in Canadian Portfolios: Is There a Better Way? May 2010 On the Non-Normality of Asset Classes Serial Correlation Fat left tails Converging Correlations
More informationASSET ALLOCATION STRATEGY
ASSET ALLOCATION STRATEGY Fourth quarter 2014 outlook Content Investment strategy Economic outlook Asset class outlook Paul English, MBA, CFA Senior Vice President Tara Proper, CFA AVP Capital Markets
More informationNATIONWIDE ASSET ALLOCATION INVESTMENT PROCESS
Nationwide Funds A Nationwide White Paper NATIONWIDE ASSET ALLOCATION INVESTMENT PROCESS May 2017 INTRODUCTION In the market decline of 2008, the S&P 500 Index lost more than 37%, numerous equity strategies
More informationTIME TARGETED EQUITY PORTFOLIOS
TIME TARGETED EQUITY PORTFOLIOS 1 3 Year 4 6 Year Equity 7 15 Year 15+ Year Global Diversification Exposure to a large number of securities around the world reduces the risk that any one stock or any one
More informationEvolving Equity Investing: Delivering Long-Term Returns in Short-Tempered Markets
March 2012 Evolving Equity Investing: Delivering Long-Term Returns in Short-Tempered Markets Kent Hargis Portfolio Manager Low Volatility Equities Director of Quantitative Research Equities This information
More informationAssessing the inclusion of alternatives in target-date funds
Assessing the inclusion of alternatives in target-date funds Vanguard Commentary August 2017 Chris Tidmore, CFA; Scott J. Donaldson, CFA, CFP ; Daniel B. Berkowitz, CFA; Daren R. Roberts In response to
More informationFederal Money Market Fund (VMFXX)
Federal Money Market Fund (VMFXX) Overview Investment approach Invests primarily in U.S. government agency obligations. Seeks current income. Seeks to maintain a constant $1 net asset value (NAV). Maintains
More informationLDI Investors: Time to Bite the Low-Hanging Fruit
FEATURED SOLUTION January 2017 LDI Investors: Time to Bite the Low-Hanging Fruit AUTHORS Rene Martel, FSA, CFA Executive Vice President Product Manager Last February, we highlighted a unique opportunity
More informationIncome Solutions Beyond Investment Grade Bonds
October 2017 Income Solutions Beyond Investment Grade Bonds Multiple Fixed Income Approaches Direction of interest rates Reduce Duration Limit Duration to Near Zero with: Floating rate notes (FRNs) for
More informationJPMorgan Funds Asia Pacific Income Fund. September 2018
September 2018 AVAILABLE FOR PUBLIC CIRCULATION Important information 1. The Fund invests primarily in income generating securities of countries in the Asia Pacific region (excluding Japan), and may invest
More informationRetirement Funds. SEMIANNual REPORT
SEMIANNual REPORT November 30, 2017 T. Rowe Price Retirement Funds The funds invest in a diversified portfolio of T. Rowe Price mutual funds, offering a professionally managed, age-appropriate mix of stocks
More informationHSBC World Index Portfolios
HSBC World Index Portfolios A range of multi-asset passive portfolios World Index. One World. One Investment For professional clients only December 2012 We understand your business is changing The advisory
More informationWorld Index. One World. One Investment
HSBC World Index Portfolios For professional clients only A range of Multi-Asset Passive Portfolios World Index. One World. One Investment We understand your business is changing The advisory market is
More informationSpecialist International Share Fund
Specialist International Share Fund Manager Profile January 2016 Adviser use only Specialist International Share Fund process process for this Fund is structured in the following steps: Step 1 Objectives:
More informationMacquarie Securities Group Stevan Vrcelj Group Head
18 Macquarie Securities Group Stevan Vrcelj Group Head Macquarie Group Limited Operational Briefing 7 February 2012 Presentation to Investors and Analysts 19 Macquarie Securities Group 1. Current challenges
More informationTotal-return investing: An enduring solution for low yields
Total-return investing: An enduring solution for low yields Vanguard research November 2012 Executive summary. Many investors focus on the yield or income generated from their investments as the foundation
More informationDESIGNED FOR TODAY S AND TOMORROW S INVESTMENT CHALLENGES
DESIGNED FOR TODAY S AND TOMORROW S INVESTMENT CHALLENGES PRUDENTIAL REAL ASSETS FUND EFFECTIVE JUNE 11, 2018, THE FUND S NEW NAME WILL BE PGIM REAL ASSETS FUND. FUND SYMBOLS WILL NOT CHANGE. Potential
More information2015 ASSET ALLOCATION STRATEGY: MAINTAIN EQUITY WEIGHTS AS HIGH AS INVESTOR TIME FRAMES WILL ALLOW
February 20, 2015 2015 ASSET ALLOCATION STRATEGY: MAINTAIN EQUITY WEIGHTS AS HIGH AS INVESTOR TIME FRAMES WILL ALLOW Michael Jones, CFA CHAIRMAN AND CHIEF INVESTMENT OFFICER Our 2015 asset allocation strategy
More informationAn Unconstrained Approach to Generating Equity Income. Investment Focus
Investment Focus An Unconstrained Approach to Generating Equity Income The economic and capital market volatility in recent years has reduced the attractiveness of equities to many investors, and it has
More informationProtecting Your Portfolio From Inflation Keith Black, PhD, CFA, CAIA
Protecting Your Portfolio From Inflation Keith Black, PhD, CFA, CAIA Showcase your Knowledge @CAIA_Keith Black @CAIAAssociation About CAIA Association The Global Leader in Alternative Investment Education
More informationYou have a mission. Vanguard fixed income can help you achieve it.
You have a mission. Vanguard fixed income can help you achieve it. Everything you do is focused on your mission. Key to its continuing success is a delicately balanced investment portfolio designed both
More informationGlobal Investment Committee Views & Valuations
Global Investment Committee Views & Valuations December 2012 1 Global Investment Committee Outlook European recession, but no global or US recession given ongoing central bank ease and US fiscal policy
More informationSoutheastern Council of Foundations 49th Annual Meeting
Southeastern Council of Foundations 49th Annual Meeting Southeastern Council of Foundations 49th Annual Meeting Here be Dragons Wednesday, November 7th, 8-9:3 AM FEATURING: Paul Eitelman, Senior Investment
More informationKP Retirement Path 2050 Fund: KPRHX. KP Retirement Path 2055 Fund: KPRIX. KP Retirement Path 2060 Fund: KPRJX. KP Large Cap Equity Fund: KPLCX
The KP Funds KP Retirement Path 2015 Fund: KPRAX KP Retirement Path 2020 Fund: KPRBX KP Retirement Path 2025 Fund: KPRCX KP Retirement Path 2030 Fund: KPRDX KP Retirement Path 2035 Fund: KPREX KP Retirement
More informationInvesting in a Time of (Financial) Repression. Cyril Moullé-Berteaux, Head of Global Asset Allocation
Investing in a Time of (Financial) Repression Cyril Moullé-Berteaux, Head of Global Asset Allocation Overview Positioning for the long-term The growing Yield Bubble Europe outperformance may just be starting
More informationq merrill edge guided investing strategy profile CIO Moderately Conservative ETF Core Tax Aware
Overview This Strategy seeks to provide diversified exposure among three major asset classes for a client's account with a moderately conservative target asset allocation. In normal market conditions,
More informationPRODUCT FACT SHEET. Bronze
Vanguard Australian Shares Index VAS VAS S&P / ASX 300 0.15% p.a. Vanguard Australian Shares Index Fund Index Information Aims to track the S&P / ASX 300 Index; The above index gives investors mid and
More informationRisk Management and Target-Date Funds
Risk Management and Target-Date Funds Speakers: John Galateria, Head of North America Institutional, J.P. Morgan Asset Management Dan Oldroyd, Portfolio Manager, J.P. Morgan Asset Management Participant-controlled
More informationEconomic Outlook. Presented: April 22, Keith B. Hembre, CFA Chief Economist & Chief Investment Strategist, FAF Advisors.
Economic Outlook Presented: April 22, 2010 Presented by: Keith B. Hembre, CFA Chief Economist & Chief Investment Strategist, FAF Advisors Investment products, including shares of mutual funds, are not
More informationGet active with Vanguard factor ETFs
Get active with Vanguard factor ETFs Factor investing has gained attention in recent years, in part because of the rise of alternatively weighted indexes and smart-beta products. Yet factor investing has
More informationEmerging Markets Stocks Q STOCKS BONDS
Q4 US Stock Market International Developed Stocks Emerging Markets Stocks Global Real Estate US Bond Market Global Bond Market ex US Q4 2017 STOCKS BONDS 6.34% 4.23% 7.44% 2.97% 0.39% 1.10% Since Jan.
More informationHo Ho Quantitative Portfolio Manager, CalPERS
Portfolio Construction and Risk Management under Non-Normality Fiduciary Investors Symposium, Beijing - China October 23 rd 26 th, 2011 Ho Ho Quantitative Portfolio Manager, CalPERS The views expressed
More information2016: THE YEAR OF TRANSITIONS
2016: THE YEAR OF TRANSITIONS Ron Florance, CFA RMF Consulting, LLC Robertson Stephens, LLC 1 WHAT HAPPENED IN 2015 Good riddance, and Happy New Year? 2 2015 ECONOMICS Growth never seemed so uninspiring
More informationRISING RATES What You Need to Know
RISING RATES What You Need to Know Although rising interest rates may primarily challenge those bond investments with the highest sensitivity to interest rates, we believe many parts of the global fixed
More informationYour gateway to Asia s strong growth potential. Schroder Asian Income
Your gateway to Asia s strong growth potential Asian economies rank amongst the fastest-growing and most dynamic globally. The region is set to remain as the world s growth engine for years to come. (the
More information9/02/2018. Building a members pension account under a TBC regime
Building a members pension account under a TBC regime Jonathan Snead, Head of Portfolio Strategists, Asia Pacific, SSGA Nigel Stewart, Executive Director, Dimensional David Wanis, Portfolio Manager and
More informationGlobal Equities. Q&A roadshow #QAroadshow2016. Gavin Marriott Product Manager
Global Equities Q&A roadshow 216 #QAroadshow216 Gavin Marriott Product Manager June 216 For professional advisers only. This material is not suitable for retail clients Questions What will drive global
More informationMorgan Stanley ETF-MAP 2 Index Information
Morgan Stanley ETF-MAP 2 Index Information Investing in instruments linked to the Morgan Stanley ETF-MAP 2 Index involves risks not associated with an investment in other instruments. See Risk Factors
More informationInvest for income with flexibility in changing markets
Invest for income with flexibility in changing markets Q3 17 Putnam multi-sector income funds Diverse opportunities. Flexible risk allocations. Bottom-up approach. An active approach can seek to reduce
More information