With the global outbreak of COVID-19 in the first half of 2020, the world was turned upside down. Under such circumstances, Japanese companies are now faced with new challenges to adapt to this “new normal”.
US Treasury (UST) yields traded in a narrow range during the month. Factors such as the second wave of COVID-19 infections in Europe, lingering volatility in US equities and continued lack of consensus on further fiscal support weighed on market sentiment.
October 2020 Second and third waves of the virus will also slow the recovery. But importantly, mortality rates have been lower, suggesting that the world continues to learn to live with the virus without requiring broad lockdowns.
We believe our active approach to credit investing allows us to better serve clients, as indiscriminate waves of downgrades following the turbulence that has rattled global financial markets this year presents us with compelling opportunities.
After three consecutive months of strong gains, Asian stocks finally succumbed to profit taking in September triggered by concerns that the global recovery from the COVID-19 pandemic could be running out of steam.
The Australian bond market (as measured by the Bloomberg AusBond Composite 0+ Yr Index) returned 1.08% over the month.
The S&P/ASX 200 Accumulation Index returned -3.7% during the month. Australian equities lagged most developed markets during the month, as most markets took a breather in September.
Although the coronavirus outbreak has caused major disruptions and geopolitical risk is on the rise, markets are looking forward to recovery. In what appears to be a rapidly changing world, many things remain the same and indeed, may be changing for the better.
The Covid-19 pandemic has accelerated the adoption of internet-based healthcare services. Growing in importance, penetration and acceptance, telemedicine will revolutionise and augment Asia’s healthcare systems.
Yoshihide Suga, Japan’s new prime minister, is widely expected to retain his predecessor’s fiscal and monetary policies known as “Abenomics”.
Clearly, it remains difficult to predict events in this volatile environment, but in the interest of our clients, we do our best and fortunately this time, we had virtually unanimous agreement on a similar scenario as in June, both politically and economically.
Despite major improvements over the last two decades, some critics will always doubt the progress of economic reform in Japan.
It does not seem that there are enough differences between Abenomics and the proposed economic policies of likely new Prime Minister Suga to justify the completely new portmanteau “Suganomics,” as a few analysts have suggested.
While everyone’s individual experience of this global pandemic has been different, there are many shared experiences that we hope readers will be familiar with. In short, the adaptations we have made as a society have changed the way we live and work. Might these new behaviours give a clue as to what industries and companies will prosper in the years ahead? Well, yes and (likely) no, but at least the task of observing our recent past may help us make sense of the present while giving us a clue about what might be round the corner.
Our philosophy is centred on the search for "Future Quality" in a company. Future Quality companies are those that we believe will attain and sustain high returns on investment.
Our philosophy is centred on the search for "Future Quality" in a company. Future Quality companies are those that we believe will attain and sustain high returns on investment. ESG considerations are integral to Future Quality investing as good companies make for good investments.
Another quarter goes by and we are still (in the United Kingdom anyway) limited in our ability to travel and congregate in offices. In my spare time, I often end up searching vainly for fresh and interesting new content, only to revert to watching stalwarts such as the Bourne film series.
Soft copies of the semi-annual accounts/reports for the funds mentioned in the investor notice dated 28 February 2019 are available on “Authorised Funds” webpage. However, if you are interested to receive printed copies of the semi-annual accounts/reports for the funds that you have holdings in, please contact us at Tel: 1800-535 8025 DID: +65 6535 8025.
Since 2013, Nikko Asset Management’s Foreword™ has been delivering world class insights to institutional investors and advisers across the globe.
Soft copies of the semi-annual accounts/reports for the funds mentioned in the investor notice dated 28 February 2018 are available on “Authorised Funds” webpage. However, if you are interested to receive printed copies of the semi-annual accounts/reports for the funds that you have holdings in, please contact us at Tel: 1800-535 8025 DID: +65 6535 8025.
Nikko Asset Management New Zealand's Auckland-based fixed income team is responsible for four strategies – New Zealand Cash, New Zealand Bond, New Zealand Corporate Bond and Bond Option.
The fixed income philosophy is that consistent and superior fixed interest returns are best achieved by adopting a diverse range of return generators, implemented in a risk controlled and cost effective manner. Over time, each return generator is expected to add small elements of incremental value, which accumulates to provide consistent and superior results.
Different market environments favour different return generators. By having a diverse range of generators, the portfolio will have a high probability of performing well under all market environments and conditions.
The process is a top-down analysis of medium term economic fundamentals and uses multiple sources of value that are designed to have limited correlation.