Nikko trims global exposures
Tensions in the Ukraine and other factors have prompted Tyndall Investment Management parent Nikko Asset Management to trim its long-running overweight stance on global equities.
The company said its Global Investment Committee (GIC) had been able to shoulder the various global risks since September 2011 and still maintain its overweight stance on global equities, but recent events had prompted a change.
“A major reason was the Ukraine tensions, but other factors also played a role in the GIC’s concern,” it said. “It has long maintained a cautious stance on China, and there are increasing signs of shadow banking defaults and declining residential property prices.
“On the other hand, certain segments of the economy will benefit strongly from the reforms even in the short term, and the GIC is by no means calling for a hard landing; rather, that economic growth will moderately disappoint consensus expectations.
“As for other factors, fairly elevated US equity valuations and the strong rise in US equity prices over the last year also contributed to the GIC’s concern, especially as earnings growth will likely be hampered by the recent weather calamities.”
Nikko said it was extremely rare that its GIC made ad-hoc decisions like and it was meant to be temporary until it met later this month in full session to make a final decision.
Recommended for you
With Insignia shares up 32 per cent in the past month and the firm enacting a five-year growth plan, Morningstar believes the two recent acquisition bids from private equity firms demonstrate the company is undervalued.
As financial advisers enter the new year, Assured Support shares eight strategies to help advice businesses thrive through focused and consistent planning.
Insignia Financial has received a takeover bid from a second US firm, topping Bain Capital’s offer with a bid of $4.30 per share.
As the year comes to an end, Money Management takes a look at the biggest announcements that shocked the financial advice industry in 2024.
