From Japan to the US via Europe and the UK, L&G Investments' multi-managers Tim Gardner and Alan Thein give their views on the global investment landscape.
"Abenomics is more aggressive and a more concerted effort to pull the country out of deflation. Valuations are looking reasonable, it is broadly attractive. There are still risks if politicians aren't aggressive enough. Our Growth fund has 16% exposure to Japan, the Balanced fund 13% and Income about 9%. All are currency hedged into sterling or dollar. We are invested in the JA Hambro Japan fund and the Polar Capital Japan Alpha.
"We expect more aggressive Bank of Japan easing plans. There is lots of potential."
"We're underweight fixed income, especially developed market government bonds. We've been underweight for some time and have lowered that even more. We have a bias towards high yield.
"The main risk in the near term is volatility in the bond market and the Federal Reserve tapering quantitative easing. But most of the risk is priced into the markets. We don't expect a savage bear market in bonds but we expect yields to rise gradually over the next few years."
"We favour Europe ex UK - growth is not priced in. The risks of an EU break up have diminished, the downside is more limited and the upside is much more positive, especially versus the US. The market is taking negative news in its stride now. We're not of the view that the EU crisis is over but the risks have lessened."
"There is a lot of value in global energy in the US, though we are still underweight US. We have exposure within some global funds. But earnings estimates are being cut and valuations are priced in.
"US shale gas has been overhyped. Fracking will plateau and energy independence by 2020 is unlikely. "
"UK data has been improving which has lent strength to the pound. But the economy is not strong enough to handle a significant rise in interest rates, given the impact that will have on mortgage holders. We're a bit more positive on the UK than last year.
"The UK banking system is still reticent to loan, though rates will be on hold for the next few years so companies will can borrow more."
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