Discusses key differentiators as economic
indicators deteriorate - seeing possibilities in U.S. fixed
income, alternatives, and real assets
BOSTON and TORONTO, June 1, 2023
/CNW/ - Manulife Investment Management today released
Global Intelligence - its semi-annual report featuring
firmwide analysis and perspectives from its global investment
teams. The report takes a detailed look at multiple scenarios that
in previous economic cycles would serve as outliers, but when taken
together paint a picture of a challenging global investment
landscape where historically accepted norms have been upended.
"We are excited to share the latest Global Intelligence
report and bring our investment teams' expertise and capabilities
to our clients," said Paul Lorentz,
president and CEO, Manulife Investment Management. "The report
serves to build confidence in positioning a resilient portfolio –
especially during times of extraordinary challenges."
With rising geopolitical tension and extended periods of market
uncertainty, hopes for a period of normalcy coming out of the
COVID-19 pandemic faded over the past year. Against this backdrop,
the report explores the breakdown of historic stock/bond
correlations, raises questions about the perceived stability of the
U.S. banking system, analyzes the role governments must play to
spur increased investment in nature, and assesses the value set of
alternative asset classes, among other topics, through the lens of
identifying opportunities to strengthen resilience against future
challenges.
"The topics we explore in the report highlight the extent to
which the accepted norms that helped guide investment decisions for
years are being challenged," said Colin
Fitzgerald, global head of institutional, Manulife
Investment Management. "There is no established playbook for this
fast-moving global macro environment, and building resilient
portfolios requires a deft hand to apply lessons learned in real
time to take advantage of opportunities for growth."
Global Intelligence analyzes the following themes
across regions and asset classes:
- The pause before the pivot: positioning fixed-income
allocations for an evolving policy landscape – Chris Chapman, CFA, head of global multi-sector
fixed income, provides fresh data to accompany a historical look at
the longstanding challenge investors face to find an adequate
balance between risk and yield in fixed-income investments. Given
the current rate-hike cycle there are challenges for today's
fixed-income investors due to the potential of sharp reversal of
central bank policy and the macroeconomic vulnerabilities it may
create.
- Will U.S. banking woes accelerate the shift to a fragmented
global economy? – Sue Trinh,
head of macro strategy, Asia,
multi-asset solutions, analyses the introduction of the Bank Term
Funding Program in the wake of the regional banking crisis and the
extent to which it may create an unlevel playing field for
financial institutions. Sue outlines the implications for global
capital markets if the program is made permanent, including its
potential to usher in the next phase of deglobalization with the
weaponization of USD liquidity as a possible outcome.
- Valuing nature after COP15:
systems, policy, action - Brian J.
Kernohan, chief sustainability officer, private markets, and
Peter Mennie, chief sustainable
investment officer, public markets, explore the steps needed to
scale sustainable investment following the agreed-upon Global
Biodiversity Framework (GBF), which established a clear trajectory
for governments globally post COP15.
They argue that the onus is on nations to design regulatory and
legal frameworks consistent with the GBF to more accurately value
nature and reward investments in nature while discouraging actions
that damage it.
- Private equity secondaries are meeting the moment
– Today's macroeconomic uncertainty and a growing need for
liquidity are driving record secondary market activity.
Jeff Hammer and Paul Sanabria, global co-heads of secondaries,
explain why secondaries now represent an undercapitalized market
opportunity for those who know what to look for and offer
principles to help secondary investors boost their odds of
success.
- Five factors influencing the effectiveness of a 60/40
portfolio – Traditional balanced portfolios came under fire
last year when stock/bond correlations surged. Members of the
multi-asset solutions team, including Frances Donald, global chief economist and
strategist, Alex Grassino, head of
macro strategy, North America,
Geoff Kelley, CFA, global head of
strategic asset allocation, and Nathan
Thooft, chief investment officer, look through the
historical data to identify the macroeconomic conditions under
which the effectiveness of a 60/40 portfolio may be challenged.
Their analysis provides a useful guide for investors looking to
better understand portfolio resilience over market cycles.
- Family structural change and retirement security in
Asia – Retirement security in
Asia is affected by more than its
aging populations; the region's traditional family support
structure is changing as well. Calvin
Chiu, head of Asia
retirement, and Elvin Tharm, head of
retirement, proposition, strategy and transformation, have
partnered with the Sau Po Centre on Ageing at The University of Hong Kong, to look at family
structures across Hong Kong,
Indonesia, Malaysia, and Taiwan. Calvin and Elvin highlight how the
evolution of the traditional family structure has complicated the
financial picture for modern-day families and the steps retirement
savers can take to mitigate the impact.
Additional information, including the full Global
Intelligence report, is available online.
About Manulife Investment
Management
Manulife Investment Management is the global brand for the
global wealth and asset management segment of Manulife Financial
Corporation. We draw on more than a century of financial
stewardship and the full resources of our parent company to serve
individuals, institutions, and retirement plan members worldwide.
Headquartered in Toronto, our
extensive capabilities in public and private markets are
strengthened by an investment footprint that spans 19 geographies.
We complement these capabilities by providing access to a network
of unaffiliated asset managers from around the world. We're
committed to investing responsibly across our businesses. We
develop innovative global frameworks for sustainable investing,
collaboratively engage with companies in our securities portfolios,
and maintain a high standard of stewardship where we own and
operate assets, and we believe in supporting financial well-being
through our workplace retirement plans. Today, plan sponsors around
the world rely on our retirement plan administration and investment
expertise to help their employees plan for, save for, and live a
better retirement. Not all offerings are available in all
jurisdictions. For additional information, please visit
manulifeim.com.
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SOURCE Manulife Investment Management