Market News
Capital International’s Views
On a regular basis, Capital International produces papers on topical investment issues relating to the management of clients’ investment portfolios. The most recent articles are:
Financials stocks: the backbone of your portfolio
December 2006 – Capital International’s institutional equity portfolios
have substantial investments in financials stocks. In some portfolios, as much
as 30% of the portfolio is invested in this sector. How these investments behave
in the years ahead will have a strong bearing on overall returns for a number
of our key equity products. This article examines our multi-pronged, bottom-up
approach to investing in this sector and explains the kinds of opportunities
we currently see.
The Environment: A Factor in Our Fundamental Analysis
September 2006 - Issues regarding the earth’s environment, especially
climate change and the availability of clean water, are increasingly important
to corporate earnings and competitiveness. Therefore, understanding environmental
concerns is part of our investment process and often an important factor in
our fundamental analysis of industries and companies. Outlined here are a few
examples that show how environmental factors may influence investment decisions
for client portfolios.
Will Asia survive a global economic downturn?
April 2008 - Asia-Pacific portfolio manager Chris Choe shares his views on recent market developments, Japan, and what makes Asia tick. He also talks about his investment style, his affinity for frontier markets like Vietnam and the themes running through both his emerging markets and developed Asia portfolios.
Securitized debt markets at a crossroads
March 2008 - Fixed-income portfolio manager Michael Locke, who specializes in securitized debt, shares his views on the turmoil in the bond markets, examining the likely shakeout as well as the causes. Will the securitized debt markets follow the example of the decimated junk bond sector of the 1980s and bounce back, or will they be forever changed by recent events? He also discusses how he is managing in this liquidity-constrained environment.
The market crisis in context: our view on recent market developments
August 2007 - While the credit market correction has been painful and is likely to keep market volatility high for some time, we think it is necessary for a repricing of risk to more rational levels that reflect underlying economic fundamentals. Here we summarize how many of our portfolio managers view recent events in the capital markets.
To obtain a copy of any of the articles above, please contact a member of the Capital National Alliance team