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Investment Insights

EQUITY

Japanese equities – 5 reasons for optimism March 2019

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.

FIXED INCOME

‘The power of the coupon’ helps boost US high-yield market’s prospects for 2019 February 2019

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.

MACRO/MARKETS

China A shares: Doors open to vast stock picker’s market January 2019

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.

FIXED INCOME

Global corporate bonds: uncharted territory highlights the need for a long-term perspective January 2019

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.

MACRO/MARKETS

The role of investment solutions – how they can help investors achieve their goals December 2018

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.

FIXED INCOME

When does Fed policy start to have an impact on high-yield markets? December 2018

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.

FIXED INCOME

Tapping into Asia’s rising middle classes October 2018

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.

FIXED INCOME

Lofty valuations compel caution in bond portfolios September 2018

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.

Q&A

The long, hot European summer of 2018 September 2018

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

Q&A

Finding balance in a volatile world September 2018

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.

Investment Insights

2018 Midyear Outlook: Long-term perspective on markets and economies July 2018

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.

Q&A

Inflation: no room for complacency July 2018

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.

Q&A

Contrarian value investor Steve Watson gives his take on global stock markets July 2018

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.

Investment Insights

Globalization demands a different investment approach May 2018

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.

FIXED INCOME FOCUS

Positioning bond portfolios : Greater volatility likely as fiscal stimulus pairs with monetary tightening March 2018

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.

Investment Insights

Shifting global trade patterns bring new opportunities March 2018

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.

Q&A

US-China trade dispute may rankle markets but shouldn’t derail global economy March 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.

Investment Insights

Can the EM Rally Roll On? New World Strategy Manager’s Outlook Is Upbeat February 2018

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.

Q&A

The global search for yield: seeking good names in bad postcodes February 2018

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.

Investment Insights

Retirement Investing: Insights Drawn from Experience January 2018

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.

Investment Insights

Compromising on Bond Fund Quality May Put Your Portfolio at Risk January 2018

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

Investment Insights

Back to the Future: The Return of Objective-Based Investing December 2017

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

Q&A

The Nascent Outcomes of Abenomics Lend Positive Support to Japanese Equities Investors November 2017

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 FOCUS

Goldilocks Economy Poses Upside and Downside Risks November 2017

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.

Q&A

A Global Approach to Investing in Emerging Markets November 2017

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.

Investment Insights

Rethink Risk: Attributes That Matter Most for Goals-Based Investors October 2017

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

Q&A

Fixed Income at Capital Group: What We Believe And How We Invest October 2017

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.

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