Risky business! Investor caution puts carry trades, real assets and emerging markets on the agenda.
October’s issue of AlphaQ reflects caution from investors with risk-on investing top of an agenda that includes diversification among assets that might not be seen as typically risk-on, including emerging markets, carry trades and real assets.
Institutional investors seem uneasy over central bank activity with a widely predicted rate hike looming in December in the US and the Bank of Japan’s admission that the QE process there is not going so well.
This issue’s cover story is an interview with Alper Ince, managing director at PAAMCO, which manages over USD10 billion in discretionary assets and advises on an additional USD11.8 billion in assets. Diversification has kept them out of the fund of fund doldrums and their latest venture is the launch of PAAMCO Miren, an emerging market firm that directly manages long-only equity portfolios in Europe, the Middle East and Africa (EMEA) and Latin America.
The emerging markets have had a fantastic year with Brazil out- performing even developed countries, reflecting the new investment world in which we are working.
Real assets can be your friend too, argues CentreSquare Investment Management’s Scott Crowe who details how investment in global listed infrastructure and real estate can reduce volatility and increase income.
Our regular columnist, Randeep Grewal, returns to Middle Earth again for investment inspiration, reporting on Elven investing, and, with the help of a little magic, conjures up a Keynesian list of investment rules.
And, finally, let’s take a look at physically real assets with our timber story. It’s hard to avoid the obvious puns here, but going with the grain does seem to offer a truly diversified return – can you see the wood for the trees?
Managing editor, AlphaQ