Investment Insights | Capital Group

Investment Insights

Against a volatile market backdrop Japanese stocks experienced a difficult year in 2018, especially in the fourth quarter. In this paper, we consider five reasons to be constructive on the outlook for Japanese equities.
After weakness in 2018, the US high-yield market now offers an improved entry point, with reasonable valuations and yields offering the potential for attractive returns. In this paper, Shannon Ward, a Capital Group US High Yield portfolio manager, discusses her views on the market and implications for the strategy.
The inclusion of China A-shares in benchmark EM indices is a significant step toward integrating China into global financial markets. Find out what our investment professionals think of this new hunting ground, and why it presents investors with both significant opportunities and challenges.
Portfolio manager Vantil Charles shares his outlook for the global corporate bond market and explains why environmental, social and governance (ESG) factors are an integral part of his investment framework.

Investment solutions move away from a focus on fund objectives and focus instead on client’s real-life goals

FIXED INCOME, EMERGING MARKETS

Finding value in emerging market debt December 2018

It has been a difficult year so far for emerging market (EM) debt investors, with the tightening of US monetary policy, the threat of a trade war between the US and China, and a number of idiosyncratic issues within EM. In this Q&A, portfolio manager Rob Neithart discusses why he remains positive on the asset class and where he finds particular value. Rob also examines the evolution of the asset class and the outlook for the US dollar.

While fundamentals appear positive and technical conditions supportive for the US high-yield market, investors remain cautious of tighter monetary policy. In this Q&A, portfolio manager David Daigle discusses his outlook for the US Federal Reserve and the economy, and how he believes these may impact high-yield bonds going forward.

The growing size and spending power of Asia’s middle class population has generated an exciting market dynamic. It is now a key investment theme in Capital Group’s Japan Equity strategy.

The global economy remains on relatively firm footing, but amid tighter monetary conditions, volatility could pick up. With valuations remaining lofty in a number of asset classes, a measured approach to bond investing seems appropriate.

A view from one of our Capital Group European Growth and Income Fund (LUX) (CGEGI) portfolio managers on the outlook for Europe.

During times of rising volatility and market dislocations, complex instruments can become very illiquid and highly correlated, behaving in unpredictable ways, potentially defeating their enhanced return and risk management purposes. In this article, we explore with Julie Dickson, Investment Director at Capital Group, how a simple approach to multi-asset investing could lead to a better outcome for clients looking for a balance of growth and stability.

Investment Insights

Why multinationals can survive trade conflicts September 2018

Faced with heightened tensions over global trade, multinational companies are deftly adapting to a new world order by employing multilocal strategies.

Read our 2018 Midyear Outlook to get investment insights for the US, Europe, Japan and emerging markets, as well as global bonds.

Investment Insights

Retirement changes everything July 2018

In this paper, we look at some of the key trends that are driving change to retirement globally today and some key principles we think are applicable to retirement income investing.

Are we at the end of the low-inflation era? Andy Budden, investment director, weighs in on the inflation outlook and reflects on the implications for different asset classes.

In this Q&A, Steve Watson, portfolio manager for the New Perspective strategy, shares his thoughts on global markets and describes his contrarian, value-oriented investment approach.

The nature of global investing has changed rapidly over the past decade as the rise of multinational companies has transformed the global economy. Technological advances, the growing importance of emerging markets and changes to trade relationships have all contributed to a changing landscape for global investors. Portfolio manager, Jody Jonsson, gives her perspective.

Growth across most regions is running modestly above trend, while inflation is gradually moving higher but remains tame. However, this equilibrium is at risk of being disrupted.

Technology is changing the nature of global commerce. Trade negotiations and the implementation of new trade and tariff regimes could accelerate this trend. This is likely to be a key theme in 2018.

In this Q&A, Capital Group Vice Chairman and portfolio manager Rob Lovelace shares his thoughts on trade negotiations and their impact on multinational companies.

Portfolio manager, Chris Thomsen, explains his optimistic outlook for emerging markets and where he sees opportunities as a manager in Capital Group’s New World strategy.

Capital Group Global Corporate Bond portfolio manager Vantil Charles outlines why he remains broadly positive on the global outlook but with an eye on future uncertainty, is currently overweight companies with defensive characteristics.

Retirement is often called the golden years. But it could lose its lustre given today’s new realities.  Understanding investor goals and the role of equities can be of great benefit.

Investment Insights

Outlook 2018: Time for Balance and Flexibility January 2018

In an environment characterised by healthy underlying growth but relatively high valuations, here are key takeaways and investment implications to consider in the new year.

When it comes to bonds, how should investors balance the competing objectives of income and diversification?

Goals-based investing appears to be gaining momentum. Find out where it all began and where we think portfolio construction is headed.

Seung Kwak, principal investment officer for Capital Group’s Japan Equity strategy, shares his views on the future of Abenomics, corporate governance improvements, and potential risks in the domestic market.

Fixed income markets may be underestimating the potential impact of tighter monetary policy. As major central banks begin to unwind their balance sheets, we are doubtful it will be a smooth transition and that the current pace of growth will continue.

Investment Director, Natasha Braginsky Mounier, shares her views on China’s role in emerging markets and where managers of the Capital Group New World strategy are finding investment opportunities today.

Life, like investing, is more than avoiding risk. Learn why the new way of investing is all about reaching goals.

Mike Gitlin, Capital Group’s Head of Fixed Income, sets out the importance of investing in bond funds that don’t engage in scope creep and explains what differentiates Capital Group from industry peers.