Equity

Investment Insights by our experts and thought leaders

Asian Equity Monthly Outlook - November 2015

The MSCI AC Asia ex Japan Index rose 8.0% in USD terms, broadly in line with MSCI AC World Index. All Asia ex Japan currencies except the Philippine Peso strengthened against the US dollar in October.

Asian Equity Monthly Outlook - October 2015

The MSCI AC Asia ex Japan Index was down 1.8% in USD terms in September which masked the volatility where the markets oscillated within a wide range of 10%.

Valuation in a Post-QE World

Markets and economies are still being dictated to by unprecedented levels of monetary stimulus. We believe in building a portfolio of companies that are more likely to flourish in the growth environment beyond 2015.

Asian Equity Monthly Outlook - September 2015

Asian equities fell 9.8%, underperforming the MSCI AC World Index by 3.2%, in USD terms. This marked the worst monthly performance for MSCI Asia ex-Japan Index since May 2012.

Looking at how Japanese companies fared with their April-June quarterly earnings, we can see that automobile manufacturers and major electronics producers posted large profit growth on the back of the weak yen and strong sales in the North American market.

Japan's "Show Me the Money" Corporate Governance - September 2015

We explain how Abenomics is the "icing on the cake" of corporate governance improvement over the last decade.

Fintech Evolution in China

The internet revolution is coming to the financial sector, addressing inefficiencies in current system and business models. In China’s case we are witnessing a combination of financial liberalisation with an internet revolution in the financial sector.

Capitalising on the Pacific Decade: Taking the long-term view on China

For investors outside China, whether they have holdings in Chinese shares or not, coming to a coherent investment view on the country has become imperative as it exerts an ever-increasing influence on global markets.

Economic Disappointment in Japan? Key points to remember (again)

As has long been our view, disappointing economic data should not worry investors in Japanese risk assets very much at all.

Asian Equity Monthly Outlook - August 2015

Asian equities fell 6.3%, underperforming the MSCI AC World Index by 8.1% in USD terms. MSCI EM Asia Index was down 6.9% in USD terms, its worst monthly performance since May 2012.

Asian Equity Monthly Outlook - July 2015

The MSCI AC Asia ex-Japan fell -3.7 % in June in USD terms, lagging the MSCI AC World by 1.4%. Asia ex-Japan markets continued to give up year-to-date gains in June as the old adage of sell in May and go away continued to hold true.

G-3 Economies Should Continue Rebounding

We believe the global economy should be quite firm for the next year, but not so strong as to cause inflation concerns.

Central Banks: Our Logic For Fed Hiking Three Times This Year

We have a non-consensus, but completely sound call for a more aggressive Fed, whereas we expect the ECB and BOJ to maintain their current aggressive easing program.

Asset Class Forecasts: Maintain Overweight Global Equities

We calculate that equity valuations are at fair levels and that stocks can grow along with earnings.

Asian Equity Monthly Outlook - June 2015

The MSCI AC Asia ex-Japan returned -2.6% in May, lagging the MSCI AC World by 2.9%, in USD terms.Asian equities underperformed other Emerging Markets (EMs), particularly Brazil and Russia, which rallied sharply.

Japan's “Show Me the Money” Corporate Governance - June 2015

We expect that profit margins will expand further in coming quarters, driven by a large corporate tax cut and continued industry rationalizations that further prove that Japan's structural profitability trend continues upward.

Asian Equity Monthly Outlook - May 2015

The MSCI AC Asia ex-Japan returned 7.2% in April after shrugging off initial weakness and outperformed the MSCI AC World by 2.3% in April in USD terms.

Japanese Overseas Equity Exposure Rising

We expect that Japanese pension funds will continue to shift their investments into risky assets in 2015.

China's LGFV debt swap – Shining light on the Shadows

The importance of President Xi Jinping's strong leadership cannot be stressed enough. Under him China is undergoing dramatic changes. While the most thorough cleansing of state corruption is ongoing, elements of China's grand strategy are becoming more evident both domestically and on the global stage.

Asian Equity Monthly Outlook - April 2015

The MSCI Asia-Pacific ex-Japan returned -0.3% in March after shrugging off initial weakness and outperformed the MSCI AC World by 1.3% in March in USD terms.