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The impact of the credit crunch is widening the spreads of investment grade bonds over treasuries, but in the longer term they offer attractive opportunities, writes Simon Hildrey

Emerging economies are better placed than in the past to weather an economic storm, writes Simon Hildrey

Does diversification into areas such as consumer goods and financials make US equities safer or less risky? Simon Hildrey talks to the leading managers to find out the answers

The safety of money market funds is proving attractive to investors, and they have been delivering positive returns during the credit crunch, writes Simon Hildrey

Widening bond spreads mean that finding value in the high yield bond market has become more of a challenge, writes Simon Hildrey

— Scurlock: credit is the biggest risk

The uncertainty in the subprime market has made for an uncomfortable ride in European equities. But most investors think it can weather the storm. Simon Hildrey reports

Tightening spreads in dollar-denominated debt means that there are few opportunities for growth. However, there may some hope within local currency denominated bonds, writes Simon Hildrey

Steep economic growth in emerging economies such as China and India has ensured that commodities funds remain in favour – but there’s no direct link to share prices. Simon Hildrey reports

— ‘This is a scale game. If you are trying to attract institutional investors, you need sizeable assets under management’ - Tim West, BGIiShares Europe

Industry insiders agree that running an exchange traded fund is all about size. With sufficient assets under managment, funds can keep costs and charges down. Simon Hildrey reports

Turmoil in parts of the mortgage market are threatening to upset the whole property applecart and hence fund managers are gearing up for possible recession, says Simon Hildrey

— Von Reckowsky: you cannot group all emerging markets together

The slump in emerging markets equities during February has made investors acutely aware of their value within a portfolio. Many groups are keeping faith in future prospects, but do not agree on where the growth will occur. Simon Hildrey reports

— ‘The consumer sector of the smaller company market could benefit from continuing growth in European domestic markets’ - Yvette Lloyd, Fidelity Funds

Commentators may have an eye on a large cap resurgence, but small and mid cap stocks still lead the way when it comes to big returns, and many believe there is more gas in the tank, says Simon Hildrey

— Raffeale Bertoni, Pioneer

A potential slow down in global markets could hit the outlook for corporate bonds, but few predict a severe impact. Also, fear of inflation could see a shift away from equities. Simon Hildrey reports

Asian equities are no longer the bargain they once were, but investors remain convinced of new opportunities going forward. However, the potential global slow down has a few funds biting their fingernails. Simon Hildrey reports

The eurozone may be coming into its own as it has recently outstripped both the UK and the US. Recent market volatility has affected the zone, as it has other regions, but new opportunities have also been created. Simon Hildrey reports

Despite recent volatility, market players are holding out for further price rises in a wide range of commodities, writes Simon Hildrey

As investors flock to exchange traded funds, providers are offering ever-more sophisticated products. However, market sectors are currently losing out to geographical locations, writes Simon Hildrey

Simon Hildrey assesses industry opinion on whether emerging markets are likely to maintain their strong peformance of the last three years

A bad October and Avian bird flu fears may have dented equity returns but investors are still bouyant about continued growth in the new year, writes Simon Hildrey

High yield bonds in the US remain at tight margins, which is why investors are looking at emerging market debt to offset that risk, writes Simon Hildrey

— ‘There is still relative value available in European stock markets, but it is harder to exploit because of the reduced differentials between equities’ Michael Barakos, JPMF

The euroland economy may be struggling behind its US counterpart, but it shows the potential to improve and is beginning to grow, writes Simon Hildrey

— “We are generally overweight in riskier countries because we are happy with the fundamental economic factors in these countries” - Rob Drijkoningen, ING

Risk averse investors spread their bets on news of the Ford/GM crisis, but emerging market debt’s bounce back shows a maturity in the opportunity-laden asset class that is attracting the institutions, writes Simon Hildrey

Simon Hildrey reviews the recent performance of US stocks and discovers that fund managers are polarised about what will happen next

Michael Strobaek’s pan-European sales team reserves the red carpet treatment for its top cross-border distributors. He talks to Yuri Bender

Life insurance companies, until recently seen as a purely institutional client, are also moving into the distribution space, believes Mr Strobaek. “Insurers increasingly want to use pooled vehicles in their solutions,” he says. “They are clearly moving into the space of being buyers or distributors of mutual funds, which they want to bracket or wrap into unit-linked life insurance products.”

A lowering of fees has boosted ETF performance but tighter profit margins means further consolidations are inevitable. Simon Hildrey explains

— ‘The valuations are still compelling as the average P/E is around 10 times and emerging markets are paying dividend yields of 3 to 4 per cent,” - Mark Mobius, Templeton

Current account surpluses and more flexible currency regimes means emerging markets are more likely to hold onto recent gains. Simon Hildrey explains

— ‘Using computer models enables us to cover a greater universe of stocks than other small-cap managers’ - Morag Lenman, Axa Rosenberg

A degree of immunity to the euro’s strength as well as declining labour costs across the continent make European small caps a good bet. Simon Hildrey explains

— ‘US car manufacturers with bonds issued in Europe and UK retailers are vulnerable to downgrades’ Peter Sass, DWS

Although European corporate bond spreads are tight and relatively pricey most analysts are cautiously upbeat on the asset class. Simon Hildrey explains