Passive credit investors could be facing significant downgrade losses when the next economic downturn hits. Active managers, however, have the flexibility to manage these risks more efficiently.
Our forecasts for the next ten years show returns from market indices will continue to undershoot investors’ expectations.
In our latest update of 30-year return forecasts we find that returns on cash are still poor while equities remain the asset class offering the greatest potential for returns.
Market turbulence has produced attractive income opportunities in Asian corporate bonds against a still positive economic backdrop in the region.
After the disappointment of 2018, Chief Executive Peter Harrison rounds up the factors our fund managers think could lead to a brighter year ahead.
We expect that the US dollar’s strength should fade in 2019 as the pace of US rate hikes begins to slow, which will ease the pressure on Asian bonds next year.