China: Will they get old before they get rich?

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Demographics are increasingly being recognised as an important economic variable in Western economies, as millions of baby boomers enter retirement age. But this process is not just occurring in the West — the outlook for China is that it will have one of the fastest declining populations in the world. Because of this, many commentators […]

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Rejuvenated China – Shares poised for sustainable rally

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New Beginning After a Lost Decade The sharp rebound in Chinese stocks so far this year has surprised many investors. Notwithstanding the false dawn in first half of 2015, when domestic equities momentarily perked up, the Shanghai Shenzhen CSI 300 Index—one of China’s main equity barometers—has generally underperformed many equity indices around the world, particularly […]

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Fixed vs. floating rate funds: The winner is clear

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Are floating rates sunk? Looking back over the past 12 months, there was not a single period that floating rate credit outperformed for the year. Even ignoring fees and active performance, it is a large differential to make up even if rates do eventually rise.     Taking this further, the Table 2 shows the […]

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5 Innovation platforms investors shouldn’t miss in 2019

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Summary During the fourth quarter, the MSCI World Index, S&P 500 and NASDAQ posted their weakest results since late 2008, pushing valuations to their lowest levels since 2014. Among the fears continuing to unnerve equity markets were slower economic growth globally, trade tensions, Fed tightening, and a flattening yield curve. Exacerbating concerns was a loss […]

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Nikko AM recognised in two categories in Asia Asset Management’s 2019 Best of the Best Awards

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Nikko Asset Management (Nikko AM) has been recognised across two categories in Asia Asset Management’s 2019 Best of the Best Awards. Asia Asset Management, The Journal of Investments and Pensions, has acknowledged Nikko AM in Japan as Best Institutional House, for the third year running, and for the first time ever, Singapore ETF Manager of […]

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CPD: Australian housing – don’t panic

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Summary Over the past year Australian house prices have seen 12 consecutive months of decline, the longest streak of persistent falls in over 20 years. House prices are now ~4% lower than this time last year — the weakest performance in the housing market since 2012.     While the performance of house prices has […]

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Stop making sense: the state of volatility in markets

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Summary Volatility is back in a big way in 2018. A large increase in the VIX is showing an annual level not witnessed since 2007. The sell-off that started in October appears to have been triggered by a number of negative technical forces in the US coming into effect at the same time, which impacted […]

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CPD: Investing for the long term – ‘future quality’ companies

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This paper discusses the belief that investing in ‘Future Quality’ companies will lead to outperformance over the long term. Drawing on academic evidence, it outlines the three fundamental concepts which underpin our definition of Future Quality investments Firstly, we look at value creation models within firms. This involves assessing the level of excess cash return […]

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The highs and lows of unemployment and wages

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Summary The September employment report showed that the Australian unemployment rate has fallen to 5%, its lowest level since 2011. While this is undoubtedly a strong result, two labour market indicators raise questions over whether this will translate into higher wages. 1. The participation rate The first is the decline in the unemployment rate during […]

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Nikko Asset Management Australia Appoints Naomi Edwards as Non-Executive Director

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 Nikko Asset Management Australia (“Nikko AM”) is pleased to announce the appointment of Naomi Edwards as a Non-Executive Director of Nikko Asset Management Australia Limited and Nikko AM Limited, effective 1 October 2018. Naomi has also been appointed as Chair of the Risk and Compliance Committee from that date. This follows the recent appointment of […]

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