Paul Hennessy

Capital Group is one of the oldest and largest funds management groups in the world. Today, Capital Group manages US$1.7+ trillion in long-term assets for millions of individual and institutional investors around the world.

Expertise

Inflation: no room for complacency

Paul Hennessy

The recent uptick in global market volatility has been driven by fears about price pressures and inflation. My colleague, investment director Andy Budden, answers questions about the inflation outlook and reflects on its implications for different asset classes. Show More

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The Long View: Investing Through Adversity

Paul Hennessy

My colleague Tim Armour has shown how markets periodically experience corrections that are part of the investment environment. Recent volatility has been jarring but the global economy is largely supportive of corporate earnings and markets. History highlights the paramount importance of staying invested through volatile economic periods to provide long-term... Show More

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Can the EM Rally Roll On? New World Strategy Manager’s Outlook Is Upbeat

Paul Hennessy

Political stability and positive economic reforms in China and India are resulting in more and better investment opportunities. Financial technology is providing a long growth runway for Chinese technology giants. Additionally, recent reforms should strengthen India’s economy and help drive corporate profits with selectivity proving key to this stage of... Show More

Artificial intelligence: it's not the future, it's now

Paul Hennessy

AI is on the verge of transforming the lives of millions of people in their workplace and at home. From driverless cars to machines that converse with humans, advances previously considererd science fiction are now becoming commonplace. Companies looking to adopt these changes have the potential to reap new profits... Show More

Globalization Demands a Different Investment Approach

Paul Hennessy

The notion of global investing is not what it used to be just 10 years ago. Rapid advancements in technology, free trade agreements and the rise of multinationals in emerging markets has transformed the structure of the economic world today, allowing companies to compete for customers, labor and capital... Show More

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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

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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

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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

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