Insights

Investment Insights by our experts and thought leaders

Australian Fixed Income Monthly – February 2021

The Australian bond market (as measured by the Bloomberg AusBond Composite 0+ Yr Index) returned -3.58% over the month. The yield curve steepened dramatically as 3-year government bond yields ended the month 1 basis point (bp) higher at 0.12%, while 10-year government bond yields spiked by 79 basis points (bps) to 1.92%. Short-term bank bill rates were marginally higher.

Australian equity monthly - February 2021

The S&P/ASX 200 Accumulation Index returned 1.5% during the month. Australian equities underperformed key offshore markets as a strong reporting season was offset by a surge in 10-year bond yields late in the month on the back of inflationary expectations. The global roll-out of COVID-19 vaccines and US fiscal stimulus saw the reflation trade take hold.

Japan Equity Monthly - February 2021

We assess the factors that enabled the Nikkei to rise above the 30,000 threshold for the first time since 1990; we also view the recent Robinhood frenzy from a Japanese market perspective.

Future Quality Insights - March 2021

The introduction of the EU’s Sustainable Finance Disclosure Regulation in March 2021 will see significant changes to the way asset management is conducted. It includes new disclosure requirements for investment firms to address environmental, social and governance (ESG) concerns and we welcome it with open arms.

Meditation for investment professionals

The investment industry is constantly searching for ways to improve its decision-making processes. Some firms increase their research teams while others move into quantitative fields such as machine learning. Amid this constant search, we focus on an alternative way to enhance the quality of our decisions; mindfulness can make the difference between a rushed, emotional decision and a thoughtful, rational conclusion.

Multi-asset monthly - February 2021

Markets have become choppy, particularly toward month-end, and we expect more of the same given the nearly unrelenting strong run in risk assets since late March 2020 that gained fresh momentum early in November following the US elections.

Asian equity monthly – January 2021

Asian stocks brushed aside uncertainties posed by new COVID-19 variants and climbed higher in January. The MSCI AC Asia ex Japan Index rose 4.1% in US dollar (USD) terms over the month.

Asian Fixed Income Monthly - January 2021

The US Treasury (UST) yield curve steepened in January. The prospect of increased federal spending in the US prompted a sharp upward move in UST yields at the start of the year.

Ample upside room for slow recovering J-REITs

In 2020 the COVID-19 pandemic negatively affected a wide variety of Japanese assets, including the real estate investment trust (J-REIT) market. J-REITs have bounced back since, but their recovery has been sluggish compared to the Japanese equity market’s rebound. Despite the slower recovery, we believe J-REITs have ample upside room once the rise gathers pace.

Japan Equity Monthly - January 2021

We discuss Japan’s robust manufacturing sector and why it is not about reclaiming the past; we also take a look at the BOJ’s ETF purchases amid the current rally by equities.

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Nikko AM works with the UK-based international organisation Carbon Footprint Ltd. to offset carbon emissions through offset programmes, and has been certified as carbon neutral since 2018.