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Hagen

Matthews Asia: What reflation, deflation and inflation mean for the markets in 2022

Looking ahead to the new year, Robert Horrocks, Chief Investment Officer (CIO) at Asia specialist Matthews Asia, ventures a prediction in favour of the traditionally weaker economies. He believes 2022 is likely to be a year of high inflation: “This generally helps the more vulnerable markets such as Eastern European countries, which have been dominated by the inflationary glow of a fairly moribund core Europe of France and Germany. Countries and regions like Vietnam and Southeast Asia, which have been chronically under-stimulated, should also benefit from China’s reflationary policies.” In his latest video market outlook (“Matthews Asia: CIO Outlook for 2022“) for 2022, Horrocks specifically addresses three areas: reflation of economies, inflation and deflation as long-term trends.

Hazelview Investments: Global REITs can achieve 12-15 per cent returns in 2022 with these real estate investments

Hazelview Investments expects annualized returns of 12-15% for the Global Public Real Estate Securities Market in 2022. This is according to the latestet “2022 Global Public Real Estate Outlook Report” which the investment manager has published now.

“The potential for rent increases in most real estate markets is the highest it has been in over a decade. REITs are able to pass along cost increases resulting in a boost to revenues,” said Claudia Reich Floyd, portfolio manager and Head of Hazelview’s German office. “We anticipate that earnings growth will be the primary performance driver in 2022.”

Property types like logistics in North America, US residential homes, European office REITs, data centers in Japan and Singapore and cell towers should specifically benefit from increases in market rents. They therefore make up Hazelview’s top five investment opportunities for 20022.

Brexit update: Is the British financial industry alive and kicking?

Der Brexit und die Folgen des Nordirland-Protokolls können das Vereinte Königreich noch ganz schön teuer zu stehen kommen. Foto: Hagen Gerle

Covid-19 or not, Brexit or not: the British financial industry is not letting the EU exit, which happened almost a year ago, get it down. New stock exchange rules, sustainability obligations and more jobs in the financial sector are supposed to prove that the industry is alive and kicking. However, the announcements on the Thames have yet to be followed by deeds. And the dispute over the Northern Ireland protocol threatens to undo the painstakingly negotiated Brexit deal, explains Hagen Gerle in this guest article for FondsTrends, the platform of Hauck & Aufhäuser Fund Services S.A. with contributions on current and future-oriented topics in the fund world: Brexit-Update: Britische Finanzszene alive and kicking? (only available in German)

 

GFC Podcast episode 9: DWS, greenwashing and deceptive calm

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What about the accusations of “greenwashing” against the German investment giant DWS? Why is German asset management, when it comes to ESG, in some cases significantly behind the international competition? And is much of the talk about sustainability in investment just hoax or (bad) marketing? I talked about this (and other related topics) with Jan Wagner, freelance financial journalist in Frankfurt/Main and expert on asset management and banking topics, and Christina Böck, partner at the international strategy consultancy for asset managers, INDEFI, for the new episode of my GFC (not the ‘Global Financial Crisis’) podcast.

This podcast is in German only.

Matthews Asia: Three questions for China and its role for climate change

matthews asia logo

China was at the centre of both criticism and the search for solutions during the United Nations Climate Change Conference (COP26) that ended yesterday in Scotland. The People’s Republic is the world’s largest emitter of greenhouse gases. Kathlyn Collins, Head of ESG at Asia specialist Matthews Asia, examines in a recent Question and Answer why China’s role in climate change is so important and what the world’s most populous country has already achieved in terms of climate protection.

Interview with Norman Wirth, Managing Director of German broker association AfW, about the consequences of the German federal election

Norman Wirth, AfW

Germany has voted – but what does the result mean for the life insurance industry and pension provision as a whole? On behalf of our client Standard Life Versicherung, we interviewed Norman Wirth, Managing Director of the German broker association AfW in Berlin, about the results of the Bundestag election. We spoke to Mr Wirth about the possible consequences for state-subsidised old-age provision, the future of the “Riester” pension, the coming supervision of insurance brokers and a possible ban on commissions (interview in mp3 format on Standard Life’s German website).

Matthews Asia: What ‘China Plus One’ means for the recovery of Indian equity markets

Fondsmanager Peeyush Mittal, Matthews Asia

Indian equity markets have proven to be quite resilient – despite the second Covid wave from late March to June, high equity valuations and above-average inflation. Peeyush Mittal of Asia expert Matthews Asia points this out in his latest market commentary („Matthews Asia Insights: What’s on the horizon for India’s markets?”) and explains which three reasons are mainly responsible for the equity recovery on the subcontinent in his view.

Matthews Asia: Evergrande’s difficulties are an idiosyncratic, not a systematic risk of China’s bond market

Teresa Kong, Matthews Asia

The plight of China’s largest property developer, China Evergrande Group, which appears to be struggling to service interest payments to two creditor banks, has not only caused turmoil in the bond markets. “Evergrande’s plight raises critical issues about investing anywhere in emerging markets, not just China,” says Teresa Kong, responsible for all fixed income strategies at Asia specialist Matthews Asia. The Evergrande saga therefore underlines the importance of conducting thorough due diligence on three aspects of good corporate governance when making bond investments, namely accounting, legal and regulatory requirements, she explains in her latest commentary.

 

Matthews Asia: “China’s regulation is doing just what the rest of the world is thinking about but hasn’t gone around to implement.”

Andy Rothman, Matthews Asia

The Chinese government’s intervention in the market for private education providers, as well as its intervention in the planned listings of ride-hailing giant Didi and Ant Group on US stock exchanges, have worried investors worldwide. Many now fear further regulation that could negatively impact listings of Chinese companies. Andy Rothman (pictured), investment strategist at Asia specialist Matthews Asia, and his colleague and Chief Investment Officer Robert Horrocks believe these concerns are only partially justified, as they explain in the following interview.

Read the full commentaries from Andy Rothman here and from Robert Horrocks here.

 

GFC Podcast Episode 8: Vegan piglet farming – and how to dispel ESG myths

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ESG up and down – not a week goes by without some financial provider launching a supposedly sustainable fund, unit-linked insurance policy, ETF or property with the three magic letters in its name. With so much (over)supply – and standards only gradually developing – transparency is key. Based on the observation of how much uncertainty currently prevails in the ESG world, among investors and providers alike, Nicolas Schild and Paula Singliarova from the German-British investment house Arabesque Asset Management launched an unusual newsletter in the summer of 2020: it is entitled “Arabesque’s Weekly Dose of ESG“, questions buzz words and headlines on the basis of data-supported facts, and is sent as personalised emails to 500 interested readers in Germany, Switzerland and the UK so far. Nicolas Schild explains in this interview with GFC (not the ‘Global Financial Crisis’) Podcast why the newsletter asks the same three questions every week, why it is not integrated into Arabesque’s Corporate Communications and what vegan piglet farming has to do with it.

This podcast is in German. Length of the podcast: 13:54 minutes.