China

Everybody’s worried that the world’s largest economy will suffer the same fate as Japan did when its asset price bubble collapsed in the late 80s. But, like it or not, China has one big advantage.

China still offers a compelling long-term investment story for investors willing to look past short-term headwinds in property and politics, according to Ninety One.

Not every risk is out in the open, and Allspring Global Investments is keeping a close eye on those that some segments of the market struggle to price – including a US government shutdown and a war on the Korean peninsula.

Rising interest rates and changing demographics are driving increasing polarisation between countries that can easily issue and refinance debt and those that can’t, with major implications for sovereign debt investors, says Franklin Templeton Institute’s Kim Catechis.

As hot air escapes the developed markets, unloved and unglamorous emerging markets are in the box seat once more. This time, it’s about more than the growth story.

Institutional funds and their managers tend not to talk about tactical bets, at least not in public. It’s a long-term game after all. But there are times when short-term opportunities can also match long-term strategies. Take China, for instance.

China is a little ahead of the US in the current re-pricing of global equities. That, coupled with western geopolitical concerns, has presented a new round of opportunities.

Australia’s superannuation funds are now parking member money further and further away from their old backyard. But a more divisive world presents them with challenges they’ve not faced before. It’s perhaps unsurprising that the opening of ASFA’s 2022 conference was dominated by conversations usually reserved for the war room. The rapid divestment from Russia –…

Investors and their fund managers have dumped Russian holdings in recent weeks amid worsening horror at the invasion of Ukraine. But active managers could lessen the blow for investors through new opportunities on the other side of a Russian trade. For Ninety One’s emerging markets team, Russia is an “ugly sideshow” to the main investment…

The fight in Ukraine is unlikely to spill over into a shooting war between Russia and the NATO countries. That doesn’t mean impossible, and investors “should absolutely worry about unintended consequences.” For the last month or so, investors have been reading the entrails of a beast they’re broadly unfamiliar with – geopolitics – to determine…