Tag Archives: pan asia

The Hunt for Value With High Earnings Expectations in Asia

In our previous blog, Earnings Revision Strategies in Asia, we discussed how those strategies performed in Asia. Although they worked well in various markets except Japan, there were some implementation challenges, such as high portfolio turnover and low liquidity for small-cap stocks. Therefore, implementing this strategy in combination with other fundamental factors with lower overall Read more […]

Earnings Revision Strategies in Asia

Factor-based strategies have been regularly used by market participants in their portfolio construction process. Apart from the established factors like value, size, volatility, etc., research on alternative factors has remained important to explain sources of alpha. One such alternative factor is consensus analysts’ earnings forecasts. Ample empirical research exists that explains the market’s reaction to Read more […]

Impact of GICS Changes to Pan Asian Sectors: BAT Moving Away From Information Technology

In November 2017, S&P Dow Jones Indices and MSCI announced revisions to the GICS® structure to be implemented in September 2018.[1] These changes are going to affect the consumer discretionary, information technology, and telecommunication services sectors. As a consequence, the Pan Asian internet giants BAT (Baidu, Alibaba, and Tencent) will be reclassified into the communication Read more […]

Asian Fixed Income: 2017 Pan Asia Report Card

The S&P Pan Asia Bond Index, which seeks to track local currency bonds in 10 countries and is calculated in USD, reversed its loss in 2016 and delivered a total return of 7.86% in 2017. Meanwhile, its yield-to-maturity widened 123 bps to 4.64% YTD. The S&P Pan Asia Corporate Bond Index outperformed the S&P Pan Read more […]

Asian Fixed Income: Continuing Rally for Indonesian Bonds

Indonesian bonds, as tracked by the S&P Indonesia Bond Index, gained 5.59% YTD as of April 5, 2017. This is a continuation of the strong growth trend observed in 2016, when the index increased 13.7% owing to the Bank Indonesia’s cut in interest rates on six occasions throughout the year. Indonesia has been one of Read more […]

Rising Interest Rates – Boon or Bane for Pan Asian Dividend Strategies?

In December 2016, the U.S. Fed raised the interest rate for the second time in the current rate hike cycle.  Three more rate hikes were expected for this year, one of which took place in March.  In a low interest rate environment, companies that have increasing dividends or offer high dividend yields look attractive to Read more […]

The Most Tranquil of Times

In step with the July, global markets calmed further in August. Based on the dispersion-correlation map, which provides a framework through which we can assess market volatility, equities have entered a very tranquil environment. It wasn’t too long ago that correlation spiked in equity markets due to geopolitical events. That heightened correlation was resolved swiftly Read more […]

Asian Fixed Income: The Philippines After the Key Overnight Rate Cut

The Central Bank of the Philippines unexpectedly lowered the key overnight rate to 3% from 4% on June 3, 2016, as it shifted to an interest rate corridor system to “improve the transmission of monetary policy.”[1]  Sovereign bonds have had a strong rally since then; the total return rose 10.82% YTD, while the yield-to-maturity tightened Read more […]

Asian Fixed Income: Sovereign Yields

The story of Asian fixed income remains compelling, and select Asian bond markets recorded strong growth and solid performance in 2016.  Most Asian currencies strengthened with the news of the Brexit, which may further improve sentiment among market participants.  Asian bond yields, though tightened, are still at an elevated level compared with their global peers. Read more […]

Pan Asia: Leveraged and Inverse ETFs Have Increased in Turnover

In recent years, leveraged and inverse (L&I) ETFs have gained significant traction in Asia. Thanks to the relaxation of listing regulations, more L&I ETFs are listing in Japan, Korea, Taiwan, Australia, and recently Hong Kong.  The number of L&I ETFs listed in Asia is on the rise; it was up to 87 as of June Read more […]