Recalibrating the Compass

  • Written by 

    Solomon Soquar, Head of Global Investments & Solutions, Q3 2015

  • 08/07/2015

Every quarter, we will bring you the latest best thinking and thought leadership from our dedicated specialists from across the breadth of Global Investments & Solutions, including Investment Strategy, Single Asset Classes, Multi Manager, Portfolio Construction, and Behavioural Finance.

The return of (a little) inflation 2 of 7 Compass Q3 2015

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Harnessing local expertise from our worldwide network of offices stretching from the UK and Europe to Asia, Compass aims to deliver a global perspective to a truly global audience.

Markets remained unsettled over the quarter as uncertainty over the pace and frequency of a US Fed rate rise and ongoing concerns over Greece presented a fragile backdrop, weighing on investor sentiment. Looking ahead, the prospects for continuing US consumption, amidst further improvement in the employment backdrop, as well as a burgeoning economic strength in the eurozone, should remain supportive of the global economic recovery as momentum picks up and uncertainty continues to subside.

In the fixed income complex, bonds appear expensive and remain complacent to the potential for some returning inflation. In this issue, William Hobbs, Head of UK & Europe Investment Strategy, considers what we can expect next from an asset class that continues to surprise. Olivier Asselin, Head of Single Asset Classes, considers the relative attractiveness of index-linked bonds versus conventional bonds, while Jaime Arguello, Head of Multi Manager, drills down on the key issue of credit market liquidity.

The ability for investors to discern good investment thinking from bad has seldom been more important. As investors face a slew of experts telling them (often contradictory) stories about what the future holds, Greg Davies, Head of Behavioural Finance, presents an invaluable set of criteria against which a reader can judge what to believe and what to ignore.