featured insights & webinar
Vietnam is seen as the country benefited from the trade war between China and the US. Samsung is assembling half of its mobile phone in Vietnam and Apple is also beginning to start the production in the nation, so it is not surprising if your next iPhone will be made in Vietnam. Investors are enthusiastic about the bright prospects of Vietnam as major upcoming world factory, but Trump’s recent critics lead to a concern if this Southeast Asian country may become the next victim of trade war. We will elaborate further about the trade situation of Vietnam at the moment, the outlook in near future, and the market reaction in this article.
Jul 31, 2019
After a bull run of close to 40% that took most by surprise in the first quarter, trade uncertainties started to really weight on Chinese stocks during the second quarter of 2019. Unlike the beta-driven first quarter, all factors of our interest had positive performance in Q2 while the broad equity market ended roughly flat. But style factors alone are far from sufficient to explain (or reduce) the impact from the geopolitical shocks to the system as there had been much more intricate implications to one’s sector exposures; therefore, we also share a quick review of industry exposures in this piece.
Jul 29, 2019
Previously, we introduced the addition of an MSCI Vietnam strategy to offer exposure to an up and coming market that benefits from trade war uncertainty. This week, we change direction and introduce our solution to risk-free USD yield – the Bloomberg Barclays US Treasury Floating Rate Bond strategy.
Jul 15, 2019
3 of our ETFs recently went through their annual index rebalances. While investors focus mainly on fees and liquidity, the rebalancing and index methodology of ETFs are equally, if not more, important to the investor experience and returns. To that end, we’d like to highlight June’s rebalances and explain what investors can expect going forward.
Jul 13, 2019
Vietnam is increasingly spoken about as one of the biggest beneficiaries of the trade war and as a market to watch going forward. However, the tools to access Vietnam remain limited. On July 18 (subject to final approvals) we will list the MSCI Vietnam strategy to make it easier for investors to access this dynamic and fast growing market.
Jul 04, 2019
The highly anticipated G20 Summit seemed to have concluded in a nice conciliatory note as the world powers converged in Osaka this past weekend. Or did it? While it seemed to have eliminated the “total risk-off” worst case scenario, and perhaps rebuilt confidence for China equities especially the new economy sectors, beyond the rhetoric, what we have is not really a pause in the trade war. The war continues as evident in the tariffs. A more accurate description is that both sides have agreed not to escalate the trade war while talks resume.
Jul 02, 2019
Whatever happens over coming weeks and even months in the US-China trade war, Donald Trump has irreparably broken the global trade architecture. And with it, he has also forced a realignment of the global supply chain that will likely see ASEAN emerge as a new manufacturing centre.
Jun 27, 2019
As we head toward the G20 meeting in Osaka, we take a moment to review the latest status of the trade war between the two largest economies today. Is it about containment or tariffs? How does the current situation compare to Japan in the ‘80s? Do either China or the US actually want to make a deal? What are the possible paths going forward?
Jun 12, 2019
As we approach the end of 1H19, it is clear that the market now finds itself in a tug of war between the Fed Put and the potential for recession. We explore this dynamic, discuss Q1 vs future growth across the 4 major economies (US, Europe, Japan and China) and remind investors to stay defensive going forward by tilting toward value and quality where possible.
Jun 12, 2019
The Global Mobile Communication Systems Association estimates that by the end of this year, 5G services will be available in 29 markets around the world, with 10 million connections. What is 5G and where do we see potential investment opportunities from this significant technology upgrade in Asia?
Jun 06, 2019
BY TOPICS
Chart Of the Week
David Lai , CFA
CFA
China government bonds have quietly emerged as one of the strongest-performing major sovereign bond markets year-to-date, standing in sharp contrast to the losses seen across most developed and emerging market fixed-income assets. While elevated crude oil prices and geopolitical tensions have reignited global inflation concerns, bond markets in the US, Europe, Japan, and several emerging economies have come under pressure as investors increasingly price in the risk of further policy tightening. US Treasury yields, in particular, have risen sharply amid growing expectations that the Federal Reserve may need to resume rate hikes by the end of this year, with other central banks potentially following suit to contain inflationary pressures. China, however, presents a very different macro and policy backdrop. While expectations for near-term rate cuts by the People’s Bank of China have faded alongside improving domestic growth, policymakers are likewise not expected to move toward tightening. The PBOC continues to maintain a supportive and “moderately loose” policy stance, while China’s inflation pressures remain relatively contained. This divergence has reinforced the defensive characteristics of China government and policy bank bonds, which continue to provide stability and steady returns while many global bond markets face ongoing capital loss risks. For institutional investors seeking duration exposure with lower inflation sensitivity and reduced tightening risk, the Premia China Treasury and Policy Bank Bond Long Duration ETF offers efficient access to one of the few major sovereign bond markets still benefiting from a supportive monetary environment.
May 28, 2026
