In 2007, Simon Doyle found himself in a tricky situation, confronted by a room of agitated investors. The returns of his portfolio, whilst positive, had not kept up with the most popular hedge fund of the time. Just one year later that same group of investors welcomed him with back... Show More
A rising tide lifts all boats, and the ten-year bull market has made it more important to be in the boat than to be sailing it well. Simon Doyle at Schroders Australia cautions that while Asset Allocation hasn’t mattered in recent years… it will be critical now that the tide... Show More
With challenges for equity markets rising, even a defensively positioned balance fund, with just 45-50% equity exposure could struggle to deliver positive returns, warns Simon Doyle, Head of Fixed Income & Multi-Asset at Schroders Australia, who emphasises that true flexibility in asset allocation will be critical ahead. In this exclusive,... Show More
The idea that we have entered a “low return” world is now consensus. The arguments are based on a combination of fundamental macro factors (a low growth world) and extended structural valuations in equity and debt markets, suggesting significant return headwinds. Consistently achieving solid real returns in this environment will... Show More
One thing Brexit has done is remind us about the inherent vulnerability of financial markets to these sorts of shocks. Our approach is anchored to the idea that the ability of markets to withstand these shocks is a function of valuations (cheap assets are in a much better position than... Show More
While markets have in many cases recovered from their Brexit jitters, we are remaining cautious. There is still significant uncertainty surrounding the consequences and timeframe of the eventual exit of Britain from the EU. Likewise, we are skeptical of the sustainability of the recovery in risk assets which seems in... Show More
We have argued for some time that central bank policies – while perhaps necessary from a political and mandate perspective – have been a pervasive force in distorting both asset prices and risk. It is possible (indeed probable) that the limits of this distortion are being tested. That is arguably... Show More
Sometimes names can tell you all you need to know, but sometimes they can be misleading. Take global high yield debt – a.k.a. “junk bonds” or “sub-investment grade debt”, often maligned as being risky and often avoided in investor portfolios for this reason. Risk though is relative and while they... Show More
The lack of clear direction in risk assets reflects several factors. Firstly, the global economy is both a negative and a positive. On the negative side – while the major economies are growing, growth rates are moderate, downside risks elevated and the lack of upward momentum means constrained corporate revenues... Show More
As investors we need to be alert to the fact that environments can and do change rapidly. It is possible that we could move from a low to a high return world very quickly. In part as a consequence of the prevailing concerns around the low return environment, there is... Show More
