China and the New Global Monetary Order
|
|
- Peregrine Hall
- 6 years ago
- Views:
Transcription
1 GLOBAL CENTRAL BANK FOCUS June 2016 China and the New Global Monetary Order AUTHOR Tony Crescenzi Executive Vice President Portfolio Manager A major source of volatility in the global financial markets over the past year relates to the emergence of a huge secular change in the global monetary order, the first since the early 1970s: China s integration into the global financial system. Highlighting this change was the inclusion of China s currency last November in the International Monetary Fund s (IMF) foreign reserve asset known as the SDR (Special Drawing Rights), whose value is determined by a basket of international currencies, including the U.S. dollar, the euro, the yen and the British pound. This integration is momentous, marking another major advance by China onto the world stage. China s imprint on the global financial markets is now unmistakable; its actions influence foreign exchange rates, interest rates, capital flows, equity markets and, by extension, the decisions made by global central banks. Adjustments to China s integration contributed to the two swoons in global equity markets last August and this past January, with two dips of about 10% in major markets. The severity of these market moves demonstrates that investors need to gain a greater understanding of this new order to avoid the potential pitfalls and take advantage of the potential opportunities. THE SUNNY SIDE OF THE DISRUPTION China s integration into the global economic system began literally decades ago, starting in 1978 with a series of market reforms in China. It accelerated after China became a member of the World Trade Organization in December Today, China is a dominant force in global trade and the world s biggest exporter.
2 2 June 2016 Global Central Bank Focus China s rapid pace of economic growth, averaging around 10% for over 30 years, has been integral to its success on the world stage and is the fastest sustained expansion by a major economy in history. 1 This growth has also led to remarkable domestic achievements, in particular a spectacular reduction in poverty 2 (see Figure 1). While this by far is the most notable achievement for the Chinese people, the increase in the standard of living is also evident in photographs taken of Shanghai recently versus 25 years earlier (see Figure 2). In contrast to China s relatively smooth integration into the global economy, China s recent integration into the global financial system has been far less seamless, with investors focusing often on the negative near-term consequences. Figure 1: China s reduction in poverty Millions of poor Millions of poor Poverty headcount ratio Source: World Bank, 2010 Figure 2: Shanghai: before and after Poverty headcount ratio (%) There are legitimate causes for concern. For starters, China s economic growth rate is slowing, probably toward 6% or so, its population is aging and it is attempting to transform an economy from investment-led to consumption-led on a scale never seen before. This requires a delicate balancing of many reforms that could easily tip China s economic and financial system in the wrong direction. Moreover, China s indebtedness has increased, and it is attempting to carefully manage a non-performing loan problem in the banking sector without upsetting its economy or its plan to transform its growth model. Despite these concerns, there are potentially positive considerations. China may someday surpass as the world s largest creditor Photographs taken in 1987 (top) and 2013 (bottom) Source: Imgur
3 June 2016 Global Central Bank Focus 3 (see Figure 3); it could thus provide an enormous amount of financial liquidity to the world, including neighboring Asian countries, which account for about a third of the world s economic growth, well above the U.S., which accounts for about 22%, and Europe, at around 18%. Those who today worry about capital outflow from China should perhaps consider the sunny side: Chiefly, the outflow frees up trapped capital in China that can then be invested in the rest of the world. Moreover, they may want to recall Bagehot s dictum, which central banks have followed profoundly and effectively in the aftermath of the 2008 financial crisis: to avert panic, central banks should lend early and freely (i.e., without limit), to solvent firms, against good collateral To this end, China s role as a major liquidity provider could well increase in the new order if the yuan becomes more widely used as a form of payment and becomes a bigger share of the foreign currency reserves held by the world s central banks. Today, however, very few reserve managers hold reserves in the yuan; most are held in U.S. dollars, as has been the case for decades. China now tops the world in international reserve assets, with holdings of $3.2 trillion (out of $11 trillion held globally) built from the world gobbling up goods Made in China (see Figure 4). So China has both the wallet and the will to ably navigate these challenges if it applies its skills to manage them. It bodes well that China has already achieved what many have dubbed an economic miracle. Perhaps Figure 3: The world s largest creditors Country Germany China Taiwan investors should consider applying Warren Buffet s Don t bet against America mantra to China too until they find reasons to bet otherwise. UNCERTAINTY AND PLENTY OF IT IN THE NEW ORDER Giving China the benefit of the doubt hasn t been easy for investors given the volatility stemming from uncertainties over China s foreign exchange policy. Investors ask, what exchange rate is China targeting? Which currencies will it manage against? At what speed would China like its exchange rate to move? Will China surprise investors yet again with more one-off currency devaluations? Net international investment position* $2.84 trillion $1.56 trillion $1.46 trillion $1.01 trillion $0.96 trillion *Defined as the net of external assets and liabilities Source: International Monetary Fund, National Bureau of Statistics of China, Ministry of Finance, Special Administrative Region and German Bundesbank, June 2015 Figure 4: Top holders of international reserves Country International reserves World total $11.04 trillion China $3.20 trillion $1.20 trillion Saudi Arabia $0.59 trillion $0.36 trillion Source: IMF and Bloomberg, March 2016 Uncertainty is the bane of financial markets, and uncertainties over monetary policy can be especially gut-wrenching. Former Federal Reserve Chairman Ben Bernanke, an advisor to PIMCO, has famously said that monetary policy is 98% communication and 2% action. Clearer communications by China could go a long way toward reducing uncertainty and restoring calm in global markets, and it has made some progress. Christine Lagarde, head of the IMF, said she was delighted by China s recent communications effort. China has been clearer about its policies since the G-20 meeting in Shanghai in February, where a ceasefire in the global currency war seems to have been declared and
4 4 June 2016 Global Central Bank Focus China s central bank governor Zhou Xiaochuan clarified the PBOC s foreign exchange policy. The calm that has followed is likely to persist in 2016 because China is hosting a series of G-20 meetings, including the heads of state in early September, and it will probably want to convey a sense of stability. THE RETURN OF STATE CONTROL What s so different about the new global monetary order? China s integration into the global financial system, and in particular its inclusion into the IMF s SDR, has reintroduced an element of state control into the world s foreign exchange system, something that has been missing since the Bretton Woods system ended in the early 1970s, which itself was a managed system lasting about 25 years. The post-bretton Woods regime has been far different: a free-floating free-forall that some believe is at the root of a very volatile era in exchange rates. What, then, is so bad about having an element of state control returned to global foreign exchange? Again, we return to uncertainty. Unlike the Bretton Woods era, when markets operated with an understanding of what the governing states intended with respect to exchange rate movements, investors today are unsure because China only recently began its communications effort. Uncertainty over the direction, depth and speed of movement in China s currency can complicate monetary policymaking throughout the world and cloud the economic outlook, especially for nations that compete and trade with China. Like ripples in a pond from drops of water, developments in China ripple throughout the global economy and the financial markets. The impact has extended to the Federal Reserve, whose monetary policy since last year can accurately be described as made in China as China s actions altered the Fed s projected course on interest rates. The European Central Bank and Bank of have also been affected, each taking actions in response to global economic and financial strains emanating from China. Their actions, in turn, contributed to market volatility, in particular s decision to lower a key policy rate below zero, thrusting two-thirds of s $7.0 trillion in government bonds into negativeyielding territory (see Figure 5). While an element of state control could turn out to be a positive development owing to the certainties it creates, for now uncertainty remains in force, albeit less so than at the start of Investors nonetheless eventually will adapt to the new order, and as long as China is successful in transforming its economy, they could well see the sunny side of China s integration into the world s financial system. Notes: 1 country/china/overview 2 World Bank Figure 5: Negative-yielding global government bonds Belgium $0.18T Netherlands $0.21T Italy $0.26T France $0.75T Germany $0.82T Austria $0.13T Spain $0.17T Ireland $0.07T Finland $0.05T Other* $0.15T $5.29T *Other = Switzerland, Denmark, Sweden, Slovakia, Luxembourg and Slovenia Source: Arbor Quantitative Research, Deutsche Bank, as of 30 April Yen Euro Other
5 All investments contain risk and may lose value. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Investors should consult their investment professional prior to making an investment decision. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only. Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO provides services only to qualified institutions and investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA is regulated by the United States Securities and Exchange Commission. PIMCO Investments LLC, U.S. distributor, 1633 Broadway, New York, NY, is a company of PIMCO. PIMCO Europe Ltd (Company No ), PIMCO Europe, Ltd Amsterdam Branch (Company No ), and PIMCO Europe Ltd - Italy (Company No ) are authorised and regulated by the Financial Conduct Authority (25 The North Colonnade, Canary Wharf, London E14 5HS) in the U.K. The Amsterdam and Italy branches are additionally regulated by the AFM and CONSOB in accordance with Article 27 of the Italian Consolidated Financial Act, respectively. PIMCO Europe Ltd services and products are available only to professional clients as defined in the Financial Conduct Authority s Handbook and are not available to individual investors, who should not rely on this communication. PIMCO Deutschland GmbH (Company No , Seidlstr a, Munich, Germany) is authorised and regulated by the German Federal Financial Supervisory Authority (BaFin) (Marie-Curie-Str , Frankfurt am Main) in Germany in accordance with Section 32 of the German Banking Act (KWG). The services and products provided by PIMCO Deutschland GmbH are available only to professional clients as defined in Section 31a para. 2 German Securities Trading Act (WpHG). They are not available to individual investors, who should not rely on this communication. PIMCO (Schweiz) GmbH (registered in Switzerland, Company No. CH ), Brandschenkestrasse 41, 8002 Zurich, Switzerland, Tel: The services and products provided by PIMCO Switzerland GmbH are not available to individual investors, who should not rely on this communication but contact their financial adviser. PIMCO Asia Pte Ltd (501 Orchard Road #09-03, Wheelock Place, Singapore , Registration No K) is regulated by the Monetary Authority of Singapore as a holder of a capital markets services licence and an exempt financial adviser. The asset management services and investment products are not available to persons where provision of such services and products is unauthorised. PIMCO Asia Limited (Suite 2201, 22nd Floor, Two International Finance Centre, No. 8 Finance Street, Central, ) is licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance. The asset management services and investment products are not available to persons where provision of such services and products is unauthorised. PIMCO Australia Pty Ltd ABN , AFSL (PIMCO Australia) offers products and services to both wholesale and retail clients as defined in the Corporations Act 2001 (limited to general financial product advice in the case of retail clients). This communication is provided for general information only without taking into account the objectives, financial situation or needs of any particular investors. PIMCO Ltd (Toranomon Towers Office 18F, , Toranomon, Minato-ku, Tokyo, ) Financial Instruments Business Registration Number is Director of Kanto Local Finance Bureau (Financial Instruments Firm) No PIMCO Ltd is a member of Investment Advisers Association and The Investment Trusts Association,. Investment management products and services offered by PIMCO Ltd are offered only to persons within its respective jurisdiction, and are not available to persons where provision of such products or services is unauthorized. Valuations of assets will fluctuate based upon prices of securities and values of derivative transactions in the portfolio, market conditions, interest rates and credit risk, among others. Investments in foreign currency denominated assets will be affected by foreign exchange rates. There is no guarantee that the principal amount of the investment will be preserved, or that a certain return will be realized; the investment could suffer a loss. All profits and losses incur to the investor. The amounts, maximum amounts and calculation methodologies of each type of fee and expense and their total amounts will vary depending on the investment strategy, the status of investment performance, period of management and outstanding balance of assets and thus such fees and expenses cannot be set forth herein. PIMCO Canada Corp. (199 Bay Street, Suite 2050, Commerce Court Station, P.O. Box 363, Toronto, ON, M5L 1G2) services and products may only be available in certain provinces or territories of Canada and only through dealers authorized for that purpose. PIMCO Latin America Edifício Internacional Rio Praia do Flamengo, 154 1o andar, Rio de Janeiro RJ Brasil No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. 2016, PIMCO. Newport Beach Headquarters 650 Newport Center Drive Newport Beach, CA Amsterdam London Milan Munich New York Rio de Janeiro Singapore Sydney Tokyo Toronto Zurich pimco.com blog.pimco.com PC137_ GBL CMR
Liquidity Markets Likely to Evolve Under Proposed Money Market Reforms
Viewpoint June 2013 Your Global Investment Authority Liquidity Markets Likely to Evolve Under Proposed Money Market Reforms The Securities and Exchange Commission on Wednesday voted unanimously to propose
More informationDefined Contribution Consulting Support and Trends Survey
PIMCO s 12 th Annual Defined Contribution Consulting Support and Trends Survey For institutional investor use only Survey overview PIMCO s DC Practice has prepared the 12th annual Defined Contribution
More informationPIMCO Research Affiliates Equity (RAE) Fundamental
PIMCO Research Affiliates Equity (RAE) Fundamental Seek to get more from your equity allocation with a systematic strategy that is designed to capture the key benefits of a passive equity approach, with
More informationA Look at Rising Household Debt in Australia and the Implications for Policy
Viewpoint June 15 Your Global Investment Authority A Look at Rising Household Debt in Australia and the Implications for Policy Australia s economy is giving off mixed signals: Even as GDP growth and income
More informationWhy the Bond Market Is Yielding Negative and What Negative Yields Mean for You
Viewpoint February 2015 Your Global Investment Authority Why the Bond Market Is Yielding Negative and What Negative Yields Mean for You Negative yields on bonds are no longer unicorns. In Switzerland,
More informationCommodities Remain a Valuable Portfolio Allocation
Featured Solution August 2015 Your Global Investment Authority Commodities Remain a Valuable Portfolio Allocation Investors typically look to a commodities allocation to provide three key benefits to their
More informationWith Inflation Set to Rise, a Fresh Look at Active TIPS Strategies
FEATURED SOLUTION February 2017 With Inflation Set to Rise, a Fresh Look at Active TIPS Strategies AUTHORS Mihir Worah CIO Asset Allocation and Real Return Jeremie Banet Executive Vice President Portfolio
More informationDemystifying Gold Prices
Viewpoint January 2014 Your Global Investment Authority Demystifying Gold Prices What is it about gold prices? Many people seem to believe they are impossible to predict, or even understand. At her Senate
More informationNavigating Divergent Global ILB Markets: Why Are UK Index-Linked Gilts Persistently Overvalued?
Viewpoint September 2015 Your Global Investment Authority Navigating Divergent Global ILB Markets: Why Are UK Index-Linked Gilts Persistently Overvalued? Mihir P. Worah CIO Asset Allocation and Real Return
More informationLies, Damned Lies and Equity Skew
Featured Solution June 2015 Your Global Investment Authority Lies, Damned Lies and Equity Skew Equity skew, which at its most basic purports to measure the difference in the value of stock options with
More informationCommercial Mortgage-Backed Securities: Approaching the Later Innings of a Recovery
Viewpoint February 2015 Your Global Investment Authority Commercial Mortgage-Backed Securities: Approaching the Later Innings of a Recovery U.S. commercial real estate (CRE) prices reached an important
More informationLeaving Money on the Table? Don t Invest in Credit Passively
GLOBAL CREDIT PERSPECTIVES May 2017 Leaving Money on the Table? Don t Invest in Credit Passively AUTHORS Mark R. Kiesel Chief Investment Officer Global Credit Anna Dragesic Executive Vice President Credit
More informationGlobal Divergence, the Federal Reserve and the Impact on U.S. Insurers
Viewpoint April 2015 Your Global Investment Authority Global Divergence, the Federal Reserve and the Impact on U.S. Insurers Insurance publication SNL Financial recently sat down with members of PIMCO
More informationU.S. Housing: Investors Reach for Higher-Hanging Fruit
Viewpoint February 214 Your Global Investment Authority U.S. Housing: Investors Reach for Higher-Hanging Fruit Home prices have risen rapidly as real estate and mortgage investors picked the housing market
More informationLosses on Italian Non-Performing Loans: Severity and Solutions
VIEWPOINT July 2016 Losses on Italian Non-Performing Loans: Severity and Solutions Losses look manageable over time, but a prompt solution now seems likely AUTHOR Joshua Anderson, CFA Managing Director
More informationCommodity Investing: A New Take on Equities
IN DEPTH July 2016 Commodity Investing: A New Take on Equities Versus Futures AUTHORS Nicholas J. Johnson Managing Director Portfolio Manager Klaus Thuerbach Vice President Product Manager After the challenges
More informationStreamlining Glide Path Implementation With an LDI Completion Manager
In Depth July 2013 Your Global Investment Authority Streamlining Glide Path Implementation With an LDI Completion Manager Rene Martel, FSA, CFA Executive Vice President Product Manager Pension plan sponsors
More informationEfficient Pension Investing
Featured Solutions June 2013 Your Global Investment Authority Efficient Pension Investing Oh Lord, help me to be pure. But not yet! St. Augustine Defining purity for a pension strategy is a tricky thing.
More informationQ&AMAY Understanding Investment Opportunities in China
Your Global Investment Authority Q&AMAY 2015 Understanding Investment Opportunities in China Eric J. Mogelof, CFA, FRM Managing Director Head of PIMCO Asia-Pacific Luke Spajic, Ph.D. Executive Vice President
More informationCanadian Secular View: Into Darkness?
Canadian Perspectives July 2013 Ed Devlin Your Global Investment Authority Canadian Secular View: Into Darkness? Since Stephen Poloz was announced as the new Bank of Canada Governor, I have discovered
More informationCan Liquidity Explain the Recent Fall in Breakeven Inflation?
QUANTITATIVE RESEARCH March 2016 Can Liquidity Explain the Recent Fall in Breakeven Inflation? AUTHORS Vasant Naik Executive Vice President Riccardo Rebonato Executive Vice President The recent dynamic
More informationThe Recession of 2020
Macro Perspectives March 2016 The Recession of 2020 JOACHIM FELS Mr. Fels is a managing director and global economic advisor based in the Newport Beach office. Prior to joining PIMCO in 2015, he was a
More informationCLOs: An Acronym for Contrarian Long-term Opportunity
VIEWPOINT PIMCO Alternatives CLOs: An Acronym for Contrarian Long-term Opportunity AUTHORS Giang Bui Executive Vice President Portfolio Manager Harin de Silva Executive Vice President Portfolio Manager
More informationHedge Fund Due Diligence in the New Normal: Insights from a Japanese Plan Sponsor Forum
Featured Solution January 2013 Bruce Brittain Your Global Investment Authority Hedge Fund Due Diligence in the New Normal: Insights from a Japanese Plan Sponsor Forum In November 2012, PIMCO held a forum
More informationDeep Value Equity Investing with PIMCO Pathfinder Strategy
Deep Value Equity Investing with PIMCO Pathfinder Strategy Introduction to Deep Value Equity Investing Deep value equity investing is an approach that seeks attractive risk-adjusted returns by investing
More informationSelecting the Optimal Investment Universe in Managed Futures
STRATEGY SPOTLIGHT May 2017 Selecting the Optimal Investment Universe in Managed Futures AUTHORS Matt Dorsten Senior Vice President Portfolio Manager Managed futures strategies use quantitative models
More informationUncovering Opportunities in Emerging Markets
Global Credit Perspectives il 214 k Kiesel Your Global Investment Authority Uncovering Opportunities in Emerging kets Emerging markets have disappointed investors in recent years: Growth is slowing and
More informationA Quantitative Framework for Hedge Fund Manager Selection 1
Quantitative Research August 2013 Your Global Investment Authority Analytics A Quantitative Framework for Hedge Fund Manager Selection 1 Niels Pedersen, Ph.D. Senior Vice President Quantitative Research
More informationViewpoints December 2010
Asset Allocation: Does Macro Matter? Niels K. Pedersen, Ph.D. Sébastien Page, CFA Financial Engineer Executive Vice President Client Analytics Head of Client Analytics Niels K. Pedersen, Ph.D. Financial
More informationRelative Value Investing in a High Frequency World
FEATURED SOLUTION PIMCO Alternatives Relative Value Investing in a High Frequency World AUTHOR Danielle Luk Executive Vice President Portfolio Manager Relative value (RV) investing has grown and evolved
More informationMonetary Policy at Warp Speed
Viewpoint May 2015 Your Global Investment Authority Monetary Policy at Warp Speed An imaginative twist on theoretical physics forms the premise of the science fiction series Star Trek : An engine called
More informationBonds Are Different: Resolving the Active vs. Passive Debate
s Are Different: Resolving the Active vs. Passive Debate Disclosures A word about risk: All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market,
More informationAs Energy Demand Outpaces Supply, Asia Looks Overseas to Refuel
Asia Credit Perspectives May 2013 Your Global Investment Authority As Energy Demand Outpaces Supply, Asia Looks Overseas to Refuel Raja Mukherji Executive Vice President Head of Asian Credit Research Energy
More informationPIMCO Solutions Group
PIMCO Solutions Group Our Solutions Group harnesses PIMCO s broad capabilities to provide innovative solutions to the challenges investors face today. We draw on the firm s proprietary research and analytics,
More informationPeak Growth. December 2017
CYCLICAL OUTLOOK December 2017 Peak Growth We expect the global expansion to continue in 2018. Yet investors should prepare for both the consequences of policy shifts and the opportunities presented in
More informationIntroducing the PIMCO Global Advantage Bond Index (GLADI )
Introducing the PIMCO Global Advantage Bond Index (GLADI ) The PIMCO Global Advantage Bond Index (GLADI ) is a new investment-grade, multi-sector fixed income benchmark. Launched in January 2009, GLADI
More informationLiquid Alternatives: Considerations for Portfolio Implementation
In Depth September 215 Your Global Investment Authority Liquid Alternatives: Considerations for Portfolio Implementation Justin Blesy Vice President Product Manager Ashish Tiwari Executive Vice President
More informationLove, Money or Disappointment: What Will Asian Credit Investors Find in Their Red Envelopes?
Asia Credit Perspectives February 213 Your Global Investment Authority Love, Money or Disappointment: What Will Asian Credit Investors Find in Their Red Envelopes? Investing in Asia s credit sector is
More informationProposed Changes in Risk- Based Capital Rules for U.S. Life Insurance Investments: A Game Changer for CIOs?
QUANTITATIVE RESEARCH December 216 Proposed Changes in Risk- Based Capital Rules for U.S. Life Insurance Investments: A Game Changer for CIOs? AUTHORS Soraya Kazziha Executive Vice President Head of EMEA
More informationCYCLICAL OUTLOOK. March Scaling It Back. As the global economy improves, central banks are reducing extraordinary monetary policy support.
CYCLICAL OUTLOOK March 2017 Scaling It Back As the global economy improves, central banks are reducing extraordinary monetary policy support. 2 March 2017 Cyclical Outlook AUTHORS Joachim Fels Global Economic
More informationThe Role of Equities and Alternative Assets in P&C Insurance Portfolios
In Depth January 2014 Your Global Investment Authority The Role of Equities and Alternative Assets in P&C Insurance Portfolios Ahmet E. Kocagil, Ph.D. Executive Vice President Client Analytics and Global
More informationA Model of Australian Household Leverage
Quantitative Research July 2015 Your Global Investment Authority Analytics A Model of Australian Household Leverage Laura Ryan, Ph.D. Vice President Quantitative Research Analyst In a recent Viewpoint,
More informationCapital Structure Modeling and LBOs 1
Quantitative Research June 2013 Your Global Investment Authority Capital Structure Modeling and LBOs 1 Rama Nambimadom Executive Vice President Shisheng Qu Senior Vice President Juan Porras Vice President
More informationSurvival of the Fittest?
Investment Outlook October 2013 Bill Gross Your Global Investment Authority Survival of the Fittest? I hate crows and my wife Sue hates bugs, but like most married couples we have learned to live with
More informationWhat Lies Beneath. September 2016
CYCLICAL OUTLOOK September 2016 What Lies Beneath In our outlook for the remainder of this year and for 2017, we discuss the likelihood of continued economic expansion while assessing the underlying risks
More informationGlobal Rates Forecast
2019 Global Cash Outlook Innovations in Cash Global Rates Forecast We review our expectations for euro, sterling and dollar performance in 2019. We expect the European Central Bank to wind down its asset
More informationThe New Neutral Revisited
Secular Outlook May 2015 The New Neutral Revisited ACTIVE INVESTING FOR THE SECULAR HORIZON There are reasons to be cautiously optimistic about the outlook of the global economy. This is one of the distillations
More informationThere Will Be Haircuts
Investment Outlook May 2013 Bill Gross Your Global Investment Authority There Will Be Haircuts Good as Money, proclaimed the ad for Twenty Grand Vodka infused with Cognac. Being a beer drinker, and never
More informationPIMCO TRENDS Managed Futures Strategy Fund: Seeking a Smoother Ride in an Uncertain World
April 2017 PIMCO TRENDS Managed Futures Strategy Fund: Seeking a Smoother Ride in an Uncertain World Trend-following, the primary approach used in managed futures strategies, has generally delivered strong
More informationCheck out Simon Sineck s. LEARN YOUR WHY e-course. (available at startwithwhy.com) for tips on uncovering the purpose underlying your work.
STEWARDSHIP IN ACTION A roadmap for adopting a stewardship approach to retirement benefits management within your organization 1 GATHER With the detours in mind, plan how you re going to get from where
More informationGlobal Markets. CHINA AND GLOBAL MARKET VOLATILITY.
PRICE POINT August 015 Timely intelligence and analysis for our clients. Global Markets. CHINA AND GLOBAL MARKET VOLATILITY. EXECUTIVE SUMMARY Eric Moffett Portfolio Manager, Asia Opportunities Strategy
More informationStocks, Bonds and Causality
QUANTITATIVE RESEARCH March 218 Stocks, Bonds and Causality AUTHORS Jamil Baz Managing Director Co-head, Client Solutions and Analytics Steve Sapra Executive Vice President Co-head, Client Solutions and
More informationDefined Contribution Plans Global Retirement Expectations Gap
DC Dialogue Volume 10 Issue 1 January 2015 Your Global Investment Authority Defined Contribution Plans Global Retirement Expectations Gap This issue features an interview with Catherine Collinson, president
More information2017 PIMCO Qualified Dividend Rates
2017 PIMCO Qualified Dividend Rates PIMCO Funds PIMCO SHAREHOLDERS PIMCO Open-End Mutual Funds PIMCO Closed-End Funds PIMCO Interval Funds This document contains tax information on PIMCO open-end mutual
More informationCult Figures. Investment Outlook August 2012
Investment Outlook August 2012 Bill Gross Your Global Investment Authority Cult Figures The cult of equity is dying. Like a once bright green aspen turning to subtle shades of yellow then red in the Colorado
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 informationPRESS RELEASE For release in UK and Austria Not for release in the United States of America
PRESS RELEASE For release in UK and Austria Not for release in the United States of America PIMCO AND SOURCE ANNOUNCE THE LAUNCH OF THREE FIXED INCOME ETFs: PIMCO Euro Enhanced Short Maturity Source ETF,
More informationWelcome! An Introduction to PIMCO Funds: Global Investors Series plc
An Introduction to PIMCO Funds: Global Global Welcome! Established in 1971 in the US, PIMCO is today recognised as one of the world s leading investment management firms. With 12 international offices
More information373% 1 UK ASSET MANAGEMENT INDUSTRY: A GLOBAL CENTRE KEY FINDINGS
UK ASSET MANAGEMENT INDUSTRY: A GLOBAL CENTRE KEY FINDINGS THE SIZE OF THE ASSET MANAGEMENT INDUSTRY IN THE UK >> Total assets under management grew significantly during 206, ending the year at a record
More informationFixed Income Manager Selection: Beware of Biases
QUANTITATIVE RESEARCH April 216 Fixed Income Manager Selection: Beware of Biases AUTHORS Ravi K. Mattu Managing Director Global Head, Analytics Mukundan Devarajan Executive Vice President Quantitative
More informationPuerto Rico: A Credit Case Study. An in-depth look at PIMCO s integrated municipal investment process
Puerto Rico: A Credit Case Study An in-depth look at PIMCO s integrated municipal investment process PIMCO Muni Investment Process: Puerto Rico Access to PIMCO s broader research capabilities helps the
More informationCredit Research. Outlook Global Cash. Outlook. Innovations in Cash
2019 Global Cash Outlook Innovations in Cash Credit Research Outlook Instead of trying to predict the timing of the end of the current market cycle, we are considering the biggest risks within the global
More informationEconomic puzzles: the world, Europe, Brexit and renminbi Martin Wolf, Associate Editor & Chief Economics Commentator, Financial Times
Economic puzzles: the world, Europe, Brexit and renminbi Martin Wolf, Associate Editor & Chief Economics Commentator, Financial Times FT-ANZ RMB Growth Strategy Series 24 th June Sydney Economic puzzles
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org) Worldwide Investment Fund Assets and Flows Trends in the
More informationThe Global Outlook: Stable But Not Secure
SECULAR OUTLOOK June 2016 The Global Outlook: Stable But Not Secure Good investment opportunities remain, but investors must be compensated for growing and heightened uncertainty and risks of policy exhaustion.
More informationDefined Contribution Consulting Support and Trends Survey
11th Annual Survey Highlights 2017 Defined Contribution Consulting Support and Trends Survey For institutional investor use only TABLE OF CONTENTS Survey overview 1 Defined contribution business 2 Plan
More informationMANDATORY PROVIDENT FUND SCHEMES AUTHORITY. Guidelines on Recognized Exchanges
Guidelines III.4 MANDATORY PROVIDENT FUND SCHEMES AUTHORITY III.4 Guidelines on Recognized Exchanges INTRODUCTION Section 2 of the Mandatory Provident Fund Schemes (General) Regulation ( the Regulation
More informationLong-term Bond Investors Shouldn t Fear Rate Rises
VIEWPOINT February 2018 Long-term Bond Investors Shouldn t Fear Rate Rises AUTHORS Robert Mead Managing Director Portfolio Manager It s a commonly held belief that rising interest rates are universally
More informationFAQ: Forces in the Global Market
Question 1: How did the European Union evolve, and how is it evolving now? Answer 1: The evolution of trade agreements within Europe, commencing with the Treaty of Rome, was a methodical process encompassing
More informationSeventh Inning Stretch
Investment Outlook September 2013 Bill Gross Your Global Investment Authority Seventh Inning Stretch They say that reality is whatever you wish it to be and I suppose that could be true. Just wish it,
More informationMANDATORY PROVIDENT FUND SCHEMES AUTHORITY
Guidelines III.4 MANDATORY PROVIDENT FUND SCHEMES AUTHORITY III.4 Guidelines on Approved Exchanges INTRODUCTION Section 2 of the Mandatory Provident Fund Schemes (General) Regulation ( the Regulation )
More informationUnderstanding collective investment trusts
Jed Petty, CFA Director of DC Strategies Understanding collective investment trusts Brendan MacKenzie, CFA Business Development Manager Matt McMenamy Business Development Manager About the authors As members
More informationPIMCO Research Affiliates Equity (RAE) Fundamental
PIMCO Research Affiliates Equity (RAE) Fundamental Seek to get more from your equity allocation with a systematic strategy that captures the key benefits of a passive equity approach, with the potential
More informationPIMCO Short-Term Strategies
1 Strategy Solution PIMCO Short-Term Strategies Morningstar 2015 U.S. Fixed Income Fund Manager of the Year Winner: Jerome Schneider and team for the PIMCO Short-Term Fund (PTSHX) For investment professional
More informationABN AMRO (Channel Islands) Limited Order Execution Policy
ABN AMRO (Channel Islands) Limited Order Execution Policy 1. Introduction 1.1. What is the aim of this policy? In this policy document, the bank has set out the procedures and rules used to execute your
More informationCORPORATE SUBSTANTIAL SHAREHOLDER NOTICE
FORM 2 CORPORATE SUBSTANTIAL SHAREHOLDER NOTICE Notice pursuant to s. 324 of Part XV of the Securities and Futures Ordinance (Cap. 571) Form for use by a corporation giving notice of : (i) First acquiring
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 informationBank of America Merrill Lynch Global Securities Operations
CPA Contact Lists Audit Confirmation Contact List Effective as of June 1, 2018 Domestic Account Type Address Phone Number Bank of America Domestic Deposit Accounts Bank of America Commercial Non-Syndicated
More informationInternational Environment Economics for Business (IEEB)
International Environment Economics for Business (IEEB) Sergio Vergalli sergio.vergalli@unibs.it Vergalli - Lezione 1 The European Currency Crisis (1992-1993) Presented By: Garvey Ngo Nancy Ramirez Background
More informationCORPORATE SUBSTANTIAL SHAREHOLDER NOTICE
FORM 2 CORPORATE SUBSTANTIAL SHAREHOLDER NOTICE Notice pursuant to s. 324 of Part XV of the Securities and Futures Ordinance (Cap. 571) Form for use by a corporation giving notice of : (i) First acquiring
More informationMANDATORY PROVIDENT FUND SCHEMES AUTHORITY
Guidelines III.4 MANDATORY PROVIDENT FUND SCHEMES AUTHORITY III.4 Guidelines on Approved Exchanges INTRODUCTION Section 2 of the Mandatory Provident Fund Schemes (General) Regulation (the Regulation) defines
More informationWhat Are Consumer and Investor Confidence Signaling?
Veronica Willis Investment Strategy Analyst WEEKLY GUIDANCE ON ECONOMIC AND GEOPOLITICAL EVENTS What Are Consumer and Investor Confidence Signaling? September 19, 2017 Key Takeaways» Consumer and investor
More informationProxy Voting and Engagement Guidelines
March 2018 Proxy Voting and Engagement Guidelines Rest of the World State Street Global Advisors ( SSGA ) Rest of the World Proxy Voting and Engagement Guidelines i cover different corporate governance
More informationStudy Questions. Lecture 14 Pegging the Exchange Rate
Study Questions Page 1 of 7 Study Questions Lecture 14 the Exchange Rate Part 1: Multiple Choice Select the best answer of those given. 1. Suppose the central bank of Mexico is pegging its currency, the
More informationCORPORATE SUBSTANTIAL SHAREHOLDER NOTICE
FORM 2 CORPORATE SUBSTANTIAL SHAREHOLDER NOTICE Notice pursuant to s. 324 of Part XV of the Securities and Futures Ordinance (Cap. 571) Form for use by a corporation giving notice of : (i) First acquiring
More informationRising Insurance Premiums: A New Impetus for Voluntary Funding of Corporate Defined Benefit Plans
Featured Solution December 2014 Your Global Investment Authority Rising Insurance Premiums: A New Impetus for Voluntary Funding of Corporate Defined Benefit Plans It is not quite a perfect storm, the simultaneous
More information55 East 52nd Street, New York, NY, 10055, U.S.A. BlackRock (Netherlands) B.V. Rembrandt Tower, 17th floor, Amstelplein, Amsterdam, Netherlands
PRESS RELEASE Brussels, 19 June 2018 17:40 (CET) Ageas and : Transparency notification REGULATED INFORMATION In accordance with the rules on financial transparency*, Blackrock has notified Ageas on 14
More informationThe Global Landscape Focus on the U.S. and China
The Global Landscape Focus on the U.S. and China Ronald Temple, CFA Managing Director, Portfolio Manager/Analyst September 214 This presentation and all research and materials enclosed are property of
More informationGlobal Property & REIT Quantitative Analysis
Global Property & REIT Quantitative Analysis 4th Quarter 2012 2n S&P Dow Jones Indices Quantitative Analysis Global Property & REIT Page 1 Contents S&P Global Property & REIT 3 S&P Developed Property &
More information55 East 52nd Street, New York, NY, 10055, U.S.A. BlackRock (Netherlands) B.V. Rembrandt Tower, 17th floor, Amstelplein, Amsterdam, Netherlands
PRESS RELEASE Brussels, 21 June 2018 17:40 (CET) Ageas and : Transparency notification REGULATED INFORMATION In accordance with the rules on financial transparency*, Blackrock has notified Ageas on 19
More informationOFFICIAL INSTITUTIONS GROUP. Trusted Partner for Sovereign Investors
OFFICIAL INSTITUTIONS GROUP Trusted Partner for Sovereign Investors Official Institutions Group YOUR TRUSTED PARTNER SSGA s Official Institutions Group is dedicated to managing assets on behalf of sovereign
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org) Worldwide Investment Fund Assets and Flows Trends in the
More informationThe PROTEUS Commodity Risk Model
Quantitative Research November 2013 Your Global Investment Authority Analytics The PROTEUS Commodity Risk Model Peter Matheos 1 Executive Vice President Masoud Sharif Senior Vice President Mahmoud Hajo
More informationIn Focus September 2008
Swap Spreads A Twist at the Long End? Mike Amey Executive Vice President Sachin Gupta Senior Vice President Jeroen van Bezooijen Senior Vice President Over the past 12 months, a lot has been said and written
More informationTable 1: Foreign exchange turnover: Summary of surveys Billions of U.S. dollars. Number of business days
Table 1: Foreign exchange turnover: Summary of surveys Billions of U.S. dollars Total turnover Number of business days Average daily turnover change 1983 103.2 20 5.2 1986 191.2 20 9.6 84.6 1989 299.9
More informationFed Tapering: Turning Point or Technicality?
Fed Tapering: Turning Point or Technicality? ICMA 99 th Annual Conference 23 September 2013 Nanette Abuhoff Jacobson Vice President Global Investment Strategist Wellington Management Company, llp Wellington
More informationWelcome to: International Finance
Welcome to: International Finance Introduction & International Monetary System Reading: Chapter 1 (p1-3) & Chapter 2 Why is International Finance Important? ٣ Why is International Finance Important? In
More informationUse Short-Term Moves to Hedge Long-Term Currency Exposures
2019 Global Market Outlook Not Over Until It s Over Currency Outlook Use Short-Term Moves to Hedge Long-Term Currency Exposures While 2019 may initially provide more of the same for international currency
More informationGlobal Consumer Confidence
Global Consumer Confidence The Conference Board Global Consumer Confidence Survey is conducted in collaboration with Nielsen 4TH QUARTER 2017 RESULTS CONTENTS Global Highlights Asia-Pacific Africa and
More informationActive ETFs for Liquidity Management and Capital Preservation. October 13, 2016 by Jerome Schneider, Natalie Zahradnik of PIMCO
Active ETFs for Liquidity Management and Capital Preservation October 13, 2016 by Jerome Schneider, Natalie Zahradnik of PIMCO SUMMARY Amid money market reform and the New Neutral reality of lower for
More information