How much longer will the war in Ukraine go on? How much further will central banks go before they deem inflation contained? How much damage will the latest US debt ceiling standoff do? How widely will the benefits of China’s anticipated economic rebound be felt? What direction will Japanese monetary policy take?
With the one-year anniversary of Russia’s attack on Ukraine looming, the latest US inflation data showing headline inflation down and core inflation up, the Bank of Japan weeks away from a change in leadership and Sino-US tensions rising, investors found it hard during the second week of February to sustain their earlier optimism.
Actions spoke louder – to equity investors – than words coming into February, with the fact that the latest interest rate hike by the US Federal Reserve was only 25 basis points, boosting flows to US Equity Funds and other groups despite the accompanying verbal warning that the battle against inflation is “not fully done.”
At the turn of the century, investing in China was viewed as a risky proposition. Foreign access to a notoriously volatile, retail-driven equity market was heavily restricted. The lack of a credible regulatory framework and legal protections deterred US venture capitalists from making direct investments in Chinese companies. In many cases, Chinese banks and the country’s fledgling private equity industry also balked. So, when Chinese technology firm Alibaba received its first $25 million investment from Goldman Sachs in 1999, investors sat up and took notice.
In this special edition, Kirsten is joined by EPFR’s CEO Todd Willits, who will comment on the company’s recent rebrand and what this exciting change entails for the firm and its customers in the months to come.
Evidence that inflation is falling and global growth is stalling gave EPFR-tracked Bond Funds a shot in the arm during the first full week of January. Ahead of December’s CPI number, which showed US inflation grew at a 13-month low of 6.45% in the final month of 2022, investors committed over $17 billion to all Bond Funds.
Balanced Funds, also known as hybrid or multi-asset funds, are a class of funds that contain both a debt and equity within a single portfolio. These funds offer investors diversified exposure that can be adjusted over time — either on a discretionary basis or in response to predetermined markers — and are an important tool for target-date retirement planning.
Flows and allocations to different sectors and sector-related fund groups over the past 14 months have been marked by conviction, record inflows – and sharp changes of direction. Learn how EPFR Data captures some significant thematic shifts, in our Sector rotation series.
I have always been at a loss to understand why the phrase “old wine in new bottles” is pejorative. After all, if you think about it, you really do want your wine to be old and your bottles new. While on the subject, it is apropos that I bring up the EPFR Regional Strategy, our oldest running quantitative strategy.
Flows and allocations to different sectors and sector-related fund groups over the past 14 months have been marked by conviction, record inflows – and sharp changes of direction. EPFR’s data also captures some significant thematic shifts.
