Latest news with #Pictet
Time of India
02-06-2025
- Business
- Time of India
Carry trades take off again as EM currencies rally
'We think funding emerging-market longs out of US dollars is the most sensible at this point,' said Anthony Kettle, the firm's senior portfolio manager in London. Emerging market carry trades gain momentum. Currency volatility decreases amid signs of easing US tariffs. An index of carry returns reached a seven-year high in late May. Asset managers increased long positions in developing-nation currencies. The Mexican peso saw a nine-month high. JPMorgan Chase's gauge of global currency volatility dropped. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Emerging market carry trades are taking off again, as currency volatility subsides amid signs US president Donald Trump's aggressive tariffs may not get fully index of carry returns hit a seven-year high in late managers have boosted long positions in developing-nation currencies in recent weeks, with those on Mexico's peso reaching a nine-month high, based on CME Group data.A gauge of global currency volatility compiled by JPMorgan Chase dropped to 8.7% on Friday from as high as 11% in early April. Pictet's Yigitbasioglu said his favorite carry-trade targets include the Chilean peso and South Korean won, which is likely to appreciate after the country elects a new president on June carry trade has been generating an increasing number of headlines recently in Asia. The Taiwan dollar surged in early May as gains in the currency led to a rush to exit positions using it as a funding Hong Kong dollar slid to the weak end of its trading band in late May as falling local interest rates led traders to use the currency as a funding outlook for further monetary-policy easing in China means the yuan too 'is becoming a very attractive funding currency,' said Ju Wang, head of Greater China foreign-exchange & rates strategy at BNP Paribas SA in Hong inflation in many emerging-market economies means that real yields on their bonds are relatively attractive. That's one reason why Brazil's real features high on the list of attractive longs at Goldman Sachs Group Inc., and ING Groep Ltd. sees the current global environment as beneficial for carry trades, with its preferred funding currencies being the euro and the dollar.'There's probably some downside to euro until June, so I'm happy to use it as a funder for now,' said Wim Vandenhoeck, a senior portfolio manager at the firm in New York, referring to his tactical trade of going long the South African rand. He also has positions favoring the Brazilian real and Turkish lira funded in dollars, he drawback of borrowing the dollar to fund carry trades is the fact US interest rates are relatively high. But the prospect of further dollar weakness means a number of high-yielding currencies in Latin America may perform well, according to RBC BlueBay Asset Management.'We think funding emerging-market longs out of US dollars is the most sensible at this point,' said Anthony Kettle, the firm's senior portfolio manager in London.
Economic Times
02-06-2025
- Business
- Economic Times
Carry trades take off again as EM currencies rally
'We think funding emerging-market longs out of US dollars is the most sensible at this point,' said Anthony Kettle, the firm's senior portfolio manager in London. Emerging market carry trades gain momentum. Currency volatility decreases amid signs of easing US tariffs. An index of carry returns reached a seven-year high in late May. Asset managers increased long positions in developing-nation currencies. The Mexican peso saw a nine-month high. JPMorgan Chase's gauge of global currency volatility dropped. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Emerging market carry trades are taking off again, as currency volatility subsides amid signs US president Donald Trump's aggressive tariffs may not get fully index of carry returns hit a seven-year high in late managers have boosted long positions in developing-nation currencies in recent weeks, with those on Mexico's peso reaching a nine-month high, based on CME Group data.A gauge of global currency volatility compiled by JPMorgan Chase dropped to 8.7% on Friday from as high as 11% in early April. Pictet's Yigitbasioglu said his favorite carry-trade targets include the Chilean peso and South Korean won, which is likely to appreciate after the country elects a new president on June carry trade has been generating an increasing number of headlines recently in Asia. The Taiwan dollar surged in early May as gains in the currency led to a rush to exit positions using it as a funding Hong Kong dollar slid to the weak end of its trading band in late May as falling local interest rates led traders to use the currency as a funding outlook for further monetary-policy easing in China means the yuan too 'is becoming a very attractive funding currency,' said Ju Wang, head of Greater China foreign-exchange & rates strategy at BNP Paribas SA in Hong inflation in many emerging-market economies means that real yields on their bonds are relatively attractive. That's one reason why Brazil's real features high on the list of attractive longs at Goldman Sachs Group Inc., and ING Groep Ltd. sees the current global environment as beneficial for carry trades, with its preferred funding currencies being the euro and the dollar.'There's probably some downside to euro until June, so I'm happy to use it as a funder for now,' said Wim Vandenhoeck, a senior portfolio manager at the firm in New York, referring to his tactical trade of going long the South African rand. He also has positions favoring the Brazilian real and Turkish lira funded in dollars, he drawback of borrowing the dollar to fund carry trades is the fact US interest rates are relatively high. But the prospect of further dollar weakness means a number of high-yielding currencies in Latin America may perform well, according to RBC BlueBay Asset Management.'We think funding emerging-market longs out of US dollars is the most sensible at this point,' said Anthony Kettle, the firm's senior portfolio manager in London.
Yahoo
15-05-2025
- Business
- Yahoo
Impact Leaders Convene to Accelerate Impact Investing Momentum across APAC during the SFi Impact Week 2025
SFi reconvenes its third annual regional gathering scaling impact over the course of the week with 250+ family offices, asset owners, impact investors and sustainability pioneers to accelerate purpose-driven capital The 2025 theme "The Power of Momentum: When Capital Meets Purpose" aims to harness the positive environmental and social outcomes achieved through collective actions and efforts of family offices and private investors, to catalyse impact across Investment, Business and Innovation in Asia Pacific and beyond The SFi Impact Summit 2025 is supported by Pictet, Nuveen, J. Safra Sarasin, Wellington Management and InvestHK, and is amplified by a network of over 20 strategic partners HONG KONG, May 15, 2025 /PRNewswire/ -- Sustainable Finance Initiative (SFi) will reconvene Asia Pacific's family offices, wealth owners and impact ecosystem leaders during their annual SFi Impact Week 2025, taking place from 19 to 23 May. This pivotal gathering will unite 250+ key players in the impact space, actively exploring ways to accelerate positive social and environmental change, over an action-packed week of interactive in-person events. Comprised of Family Principals, Asset Owners, NextGen, private investors and ecosystem leaders from around the world, the SFi Impact Week curates a platform to share, learn and collaborate on impact in Asia Pacific and beyond. With over USD1.57 trillion of impact investing assets[1] under management globally, and growing 57% in Asia Pacific in the last five years, the region has become a dynamic hub for impact investors, where strategic deployment of private capital is driving the force for change. Amidst economic uncertainty and escalating environmental challenges, Asia Pacific's family offices and impact investors are proving that financial returns and measurable impact can be powerfully aligned. This strategic shift from niche allocations to mainstream imperatives is unlocking innovative financing models that address the region's most urgent challenges, bridging crucial funding gaps whilst creating new market opportunities aligned to sustainable development priorities. The SFi community is mobilising private capital as a transformative force for change, uniting stakeholders through this landmark gathering to harness their collective conviction and accelerate momentum towards a sustainable future. Katy Yung, CEO of Sustainable Finance Initiative, said: "The momentum for impact investing has never been more timely. Asia Pacific continues to be the region most impacted by climate-related hazards, and rapid urbanisation demands sustainable and inclusive measures to address population needs. SFi Impact Week represents our commitment to mobilise our members' and networks' shared conviction in private capital's power for positive change, to collectively build a better future." The annual flagship event, the SFi Impact Summit 2025, will take place on 21 May in Hong Kong and is supported by partners including Nuveen, Pictet, J. Safra Sarasin, Wellington Management and InvestHK. This pivotal gathering will unite key players in the impact space to actively explore ways to accelerate positive social and environmental change. Building on the success of SFi's previous Impact Summits, this year's gathering aims to unleash and celebrate the collective power of a community possessing both the means and imagination to reshape tomorrow. More than 40 impact investing pioneers from around the world will share their personal journeys and institutional experiences under the theme "The Power of Momentum: When Capital Meets Purpose". Key speakers include: Carol Liew, Managing Director, ECCA Family Foundation, Singapore Chavalit Frederick Tsao, Chairman, TPC (Tsao Pao Chee), Singapore Christina Leijonhufvud, CEO, BlueMark & Co-Founder, Tideline, USA Dan Fitzgerald, Founder and Managing Partner, ReGen Ventures, Australia Dr. Daniel Wild, Chief Sustainability Officer, J. Safra Sarasin, Switzerland Ilaria Chan, Chairperson, Tech For Good Institute, USA Kristina Hermanson, Head of APAC and Africa, Nuveen Natural Capital, Australia Richard Mak, CFA, Head of Product & Business Management - Asia, Pictet Wealth Management, Hong Kong Thomas Knudsen, Principal, Rumah Group, Singapore Yvette Man-yi Kong, Founder & CEO, Arelyx, Hong Kong This year's SFi Impact Week and flagship SFi Impact Summit, provide a forum for candid exchanges amongst leading global family offices, asset owners, private investors and impact pioneers. This gathering will empower participants to learn and share game changing insights that accelerate the momentum of positive transformation, whilst creating long-term, scalable impact across investment, business and philanthropic portfolios. The SFi Impact Summit is also supported by a network of ecosystem partners including: BlueOnion, Cathay, Centre for Sustainable Finance & Private Wealth, Gloucester Luk Kwok, Hong Kong Academy for Wealth Legacy, Hopewell Hotel, New Impact Society, Octave, Parinama, The Hari Hong Kong, The ImPact, The Mills Fabrica, Tsao Pao Chee, and The Upper House. [1] — Please refer to the 2025 Summit programme (continual updates) and featured speakers here. About Sustainable Finance Initiative Sustainable Finance Initiative 'SFi' is a global platform created by and for Asia Pacific-focused private investors and changemakers, who believe in mobilising private capital for positive impact. They advise, guide and collaborate with impact driven family offices, asset owners, private investors, and financial services professionals to best position their capital for profit and purpose. About Nuveen About Pictet About J. Safra Sarasin About Wellington Management About InvestHK View original content: SOURCE Sustainable Finance Initiative Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-04-2025
- Business
- Yahoo
Emerging Markets Offer Safe Haven from Trump Tariffs: Swiss Analyst
In Pictet Asset Management's April barometer, titled "Emerging market assets offer refuge from Trump tariffs," Chief Strategist Luca Paolini argues that Trump's policies give emerging markets the upper hand as trade tensions escalate. The Geneva, Switzerland-based wealth-management firm has upgraded Chinese equities to overweight from neutral, citing positive signals from the domestic economy that outweigh concerns about Trump's tariffs. Investors seeking exposure to this trend might consider the iShares MSCI China ETF (MCHI). Meanwhile, European equities were downgraded to neutral from overweight following their strong rally. Pictet remained neutral on stocks, bonds and cash overall, but expressed a preference for emerging market bonds due to their growth prospects, solid global trade and attractive yields. The firm also maintained a positive stance on gold as a hedge against geopolitical tensions. For investors seeking this exposure, the SPDR Gold Trust (GLD) provides a direct investment vehicle. This strategic shift comes as U.S. growth is expected to slow to 2% in 2025, with businesses delaying investments due to trade policy uncertainty. In contrast, China's economy is projected to grow 5.2%, supported by strong industrial production, a stabilizing housing market, and ongoing fiscal and monetary stimulus. As Trump's tariff policies create volatility in developed markets, investors may find better opportunities in emerging economies that face less direct impact and offer stronger growth potential, according to the Swiss firm's analysis. Emerging economies are projected to grow 4.3% in 2025, outpacing developed markets at 1.6%, according to the report. The iShares MSCI Emerging Markets ex China ETF (EMXC) offers exposure to these markets while excluding China for investors who want emerging market exposure with reduced Chinese concentration. Pictet maintains overweight positions in several sectors expected to perform well despite trade tensions. Communication services remain attractive due to AI-driven growth potential, with the Communication Services Select Sector SPDR Fund (XLC) offering focused exposure. Financials could benefit from strong earnings and possible Trump-led deregulation, the Pictet report said. Utilities round out Pictet's favored sectors, with the iShares U.S. Utilities ETF (IDU) providing exposure to companies that offer defensive characteristics combined with long-term electricity demand growth. The report notes that Germany and the European Union's defense and infrastructure spending improve Europe's prospects, potentially offsetting some impacts from U.S. tariffs. However, the U.K. economy continues to struggle, likely prompting rate cuts from the Bank of England. In fixed-income markets, emerging market debt presents strong opportunities. With supportive interest rates, widening growth differentials and improving global trade, Pictet has taken an overweight stance on local currency government debt and corporate bonds from these regions. The implications of these trade tensions became evident in March when Trump's tariff policies triggered a selloff in U.S. equities, with the S&P 500 suffering its worst quarterly loss in three years. European stocks, however, outperformed the U.S. by a record margin, while emerging markets demonstrated resilience, benefiting from a weaker | © Copyright 2025 All rights reserved
Bloomberg
28-03-2025
- Business
- Bloomberg
Pictet Cuts Overweight on Turkish Corporates as It Monitors Lira
Pictet Asset Management SA, a leading European-based asset manager, is cutting its overweight stance on Turkish corporate bonds given the country's recent political unrest. 'We've kind of reduced exposures and probably are a bit more cautious,' said Sabrina Jacobs, a senior client portfolio manager at Pictet, which had £288 billion of assets ($373 billion) under management or custody as of last year. The fund manager has been reducing currency and local-bond positions and buying credit-default swaps, a widely-used credit risk-hedging tool, she said.
