Bryn Jones, Rathbones

The focus in the corporate bond sector has turned towards active selection with managers looking to companies with exposure to the US and emerging markets, writes Ceri Jones.

Joe Harvey, Cohen & Steers

Clients have been moving back into property funds, but asset managers are treating the recovery with caution, writes Ceri Jones.

Money market funds are struggling with the impact of low interest rates as investors look to higher returns in the equity and bond markets, although the safety of the more conservative funds does offer an alternative to bank deposits. Ceri Jones reports

Both managers and consumers are concerned about Europe’s economic situation and prospects for growth, which are hampered by issues such as high levels of debt and possible currency devaluation, writes Ceri Jones

There may be concerns about the immediate prospects for the asset class, but emerging market equities remain a compelling long-term investment, writes Ceri Jones

ETFs were one of the few asset classes to enjoy inflows during the financial crisis, and the wealth management industry is increasingly using them to reduce costs and offer clients access to new markets. Ceri Jones reports

High yield bonds have enjoyed a great year so far, but worries about if the recent rally can continue and whether the high levels of defaults are set to continue are leading some to question just how attractive the asset class remains. Ceri Jones reports

After the bull run, the argument for risk reduction is strong, particularly as stocks too have enjoyed a good phase, and some wealth managers are far from sanguine about default rates at the speculative end of the market.

The strong growth prospects offered by emerging markets are a big opportunity for investors, writes Ceri Jones, although the speed of that growth can bring with it risks such as inflation

Many wealth managers now suggest that well balanced equity portfolios should boost their emerging market exposure to 10-15 per cent, and that this should be reviewed on a regular basis, to reflect the region’s rapid growth.

The recent rally in equity markets may have more to do with downsizing measures than growth, but the business world is proving more resilient than many expected, writes Ceri Jones

At this juncture in the cycle, investors are largely positioning themselves in anticipation of an upturn in the markets. “Most of the discussions we have with our clients are about concentrated growth strategies,” says Michael Jones, head of European financial institutions at Janus Capital International.

Commodities have had a good year so far, a trend that looks set to continue, both in the coming year and over the longer-term, writes Ceri Jones

There are plenty of buyers drawn to the wide spreads priced into the corporate bond sector. But, asks Ceri Jones, is there a risk of oversupply?

Real estate valuations may not have reached the bottom yet, but some investors believe there are bargains to be had, writes Ceri Jones

With nervous investors choosing to remain in the safety of government debt, managers are looking to make certain of the credit quality of their issuers, writes Ceri Jones

Most analysts recommend being underweight Europe, believing that the US will lead the way out of recession. But there is still value in quality companies with strong balance sheets, writes Ceri Jones

Emerging markets may not be immune from the global economic downturn but they could recover faster than western markets. Investors looking for positive returns are shying away from exotic markets and looking to manage risk in areas such as local currency debt and eastern European economies, writes Ceri Jones

Investors in European money market funds are becoming evermore

sophisticated and are now taking a keen interest in how the funds are run, writes Ceri Jone

The property market continues to plumb new depths, writes Ceri Jones, but some managers believe that signs of a return to growth

are starting to emerg

With spreads so wide, now may be the time to start looking for

potential opportunities in the high yield bond market, writes Ceri Jone