Paul Hennessy

Paul
Hennessy

Senior Vice President and Managing Director, Australia
Capital Group

Capital Group is one of the oldest and largest funds management groups in the world, managing equity, fixed income and private equity assets for all types of investors. The company manages more than US$1.7 trillion in long-term assets for investors.

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Shifting global trade patterns bring new opportunities.

Paul Hennessy

In his latest investment insight, Rob Lovelace, Vice Chairman of Capital Group, explores the profound changes occurring in global trade and key themes investors should consider. Show More

Political populism and the markets

Paul Hennessy

Populism hit the headlines a year ago when the UK voted to leave the European Union (EU), and it has cast a shadow over many political events since then. My colleague, political economist Talha Khan, discusses what could be in store for Europe, considers the effects on the US with... Show More

A Growing Disconnect between Politics and Markets

Paul Hennessy

My colleague, Wesley Phoa, argues that “the key to successful active management in periods of elevated uncertainty is not to stake everything on single-point forecasts. Rather, it is the ability to apply detailed policy analysis to a range of scenarios, and to maintain enough portfolio flexibility to respond rapidly and... Show More

Not all fund managers can stand the test of time

Paul Hennessy

Ten years ago, nearly 5,400 US-domiciled mutual funds were available to investors. Today only around 36% of them are still in existence, according to Morningstar data. The chances of long-term investors picking funds that are later merged or closed are fairly high. Show More

China’s Tech Giants Are Leapfrogging the U.S. in Mobile Innovation

Paul Hennessy

China’s internet companies are developing cutting-edge mobile applications and leapfrogging the titans of U.S. technology in certain respects. China is no longer simply a tech copycat: Tencent, Alibaba and Baidu are playing a leading role in China’s shift to a consumption-led economy. Capital Group expects increasing amounts of mobile innovation... Show More

The new breed of global companies is creative, nimble and networked

Paul Hennessy

There has been a rapid shift in the makeup of global business, beyond the traditional giants. A host of new global companies – such as Google, Apple and Amazon - is rapidly emerging, often with a unique solution to a global problem. Global equity investors need to be mindful that... Show More

An integrated approach to responsible investing

Paul Hennessy

Climate change has financial implications that are too big to ignore. Companies that do not anticipate regulatory developments may be at risk of a higher cost of capital, more expensive regulation or redundant assets. At Capital Group, we recognise that corporate decisions have the potential to cause harm to people... Show More

Is the worst over for emerging markets after a rough three-year stretch?

Paul Hennessy

While economic uncertainty remains high, especially in Britain and the US, interestingly many emerging markets’ economies are at the beginning stages of economic reforms and recovery. And with expectations dimming on the prospect of the US Federal Reserve raising interest rates anytime soon, developing countries stand to benefit. What’s more,... Show More

Emerging Markets: Where do we go from here?

Paul Hennessy

The first decade of this century proved a strong period for emerging market equity investors, as the annualised 10-year return from the MSCI Emerging Markets Index reached 15.9%, versus 2.3% achieved by developed market equities. Then, as the global economy emerged from the GFC, emerging markets (EMs) such as China,... Show More

emerging markets investor education long term investing

The truth about ‘buy low, sell high’

Paul Hennessy

The notion of ‘buy low, sell high’ might seem obvious – and simple – enough but this oldest piece of investment advice is easier said than done. In fact, the opposite often happens to most investors: they tend to buy high and sell low. During the peak of the dotcom... Show More

Negative rates and US credit outlook

Paul Hennessy

While some central banks are experimenting with negative interest rates as a way to stimulate their economy, some regions like Japan and Europe have not yet been successful, which could lead to possible unintended consequences. My colleague and fixed income investment specialist, Eric Delomier, discusses the negative rates and why... Show More

fixed income volatility US Bonds negative interest rates

China mired in slow growth, major FX move unlikely

Paul Hennessy

As the world’s second-largest economy, China is at an important Show More

Endorsing emerging markets

Paul Hennessy

Why are investors shunning emerging markets? Could this asset class be an attractive choice for long-term growth? It is true that emerging markets have recently delivered poorer returns relative to developed markets, primarily on the equity side. Over the three years to the end of April 2015, the MSCI World... Show More

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Emerging markets have become diverging markets

Paul Hennessy

Emerging markets face many challenges, from a potential rise in US interest rates to low commodity prices and slower economic growth. It may seem that now is not the right time for emerging market debt. And yet, for long-term active investors the universe is broad enough and deep enough to... Show More

Take a long-term view and stay invested

Paul Hennessy

The investing time horizon can be a big factor in setting investment objectives and shaping investor outcomes. Yet, it’s a contentious issue in finance as there is rarely any consensus on what a long or short time horizon really means. Show More

The China syndrome: meltdown or recovery ahead?

Paul Hennessy

A sharp selloff in China’s stock market, a surprise currency devaluation and a persistent slowdown in economic activity have raised doubts about the ability of the world’s second-largest economy to maintain the hypergrowth levels of the past two decades. Despite this, the outlook for China’s economy remains generally positive over... Show More

10 Observations about the Current Market Environment

Paul Hennessy

Periods of extreme market turbulence can be unnerving. One of the best pieces of advice for making it through turbulent global markets is to turn off the TV. Listening to dire predictions that the media broadcasts during these periods is what causes some investors to pull out of the market... Show More

Not all global equities are created equal

Paul Hennessy

Australians need to look further afield for additional sources of income as they live longer. In particular, global equities that pay and grow dividends over time have the potential to address investors’ challenges of managing both market and longevity risk in retirement. Show More

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