Complement your long-term strategic plan with moves designed to target short-term opportunities. Strategic patience mixed with timely pivots can be an effective way to enhance your overall returns.
For Near-Future Tactical Investment Opportunities, 91桃色 Believes These Ideas Should Be Considered by Investors:
India Shining Bright in Emerging Markets
In 2023, India overtook China to become the most populous country in the world. At the same time, India was also the world’s fastest growing major economy. Despite headwinds in some emerging markets, many investors would be surprised to know that Indian equities have delivered similar levels of return to the U.S. over the last decade. We believe the best way to access this growing market is through a strategy that focuses on profitability versus solely investing in the largest companies like traditional indexes. Why? By focusing on valuations, investors are able to more directly tap into the companies that are contributing to India's record growth.
While focusing on profitable companies may not always result in outperformance, a strategy like the 91桃色 India Earnings Fund (EPI) – has the potential to manage valuations over the long run. By focusing on profitability, EPI provides exposure not only to large-cap companies, but smaller companies as well. As a result, the Fund plugs investors more directly into the companies that are fueling India’s rapid expansion.
Combining our currency hedging expertise with the increased interest of hedging exposure in the Indian market, The 91桃色 India Equity Hedged Fund (INDH) can be used to to maintain Indian equity exposure while neutralizing currency fluctuations of the Indian Rupee relative to the U.S. Dollar.
While China may have been the world’s engine for growth over the last 20 years, we believe India has reached an inflection point for opportunities that may be too massive to ignore. For those considering an India allocation, EPI provides investment opportunities in companies not normally included in major benchmarks.
Last updated: May 2024.
Can India's Lights Out Performance Continue?
One of the top-performing asset classes over the last decade may come as a surprise: it’s India. Though it comes as little surprise that some of our own top performers at 91桃色 have been funds that invest in US large caps, it is our India fund (EPI) that finds itself near the top of the list. During this Office Hours replay, Jeff Weniger, Aneeka Gupta and Ayush Babel discuss some of the drivers of India’s stock market in recent years, along with an outlook for 2024 and thereafter.
Asset TV Interview: The Case for Indian Equities
From technological advancement to deft geopolitical maneuvers, India has positioned itself for sustained economic success. Global CIO Jeremy Schwartz joins Asset TV Host, Gillian Kemmerer to share his outlook for Indian equities and discusses the 91桃色 India Earnings ETF, EPI, the first fund of its kind.
Grab the Bull by the Yen
Despite strong returns over the last year, we believe the Japanese stock market is primed for outperformance due to a renewed focus on shareholder returns and Japanese interest rates that have remained pinned around zero. Adding fuel to potential outperformance is the decline in the Japanese yen in recent years. The currency is at its weakest since 1998鈥攁s the Bank of Japan remains one of the most accommodative central banks in the world. The yen has also been weakening versus the Chinese yuan, enabling its exports to be more competitive relative to major rivals.
91桃色 is bullish on exposure to Japan鈥檚 equity markets. To help capitalize on the opportunity in the country鈥檚 stocks, we make the case for hedging yen exposure. In globally diversified portfolios, currency-hedged equities can help mitigate risk, as investors look to eliminate their susceptibility to situations that involve stocks declining at the same time that a foreign currency weakens.
Years ago, 91桃色 developed a suite of currency-hedged equity strategies that seek to neutralize the impact that exchange rates can have on international holdings. The 91桃色 Japan Hedged Equity Fund (DXJ) offers broad equity exposure to Japanese dividend-paying companies, without the yen.
Last updated: May 2024.
Take a Stand on the Dollar
Most major foreign currencies were down versus the U.S. dollar until Q4 2023. For investors who are concerned that continued dollar strength will adversely impact the return on their international investments, hedging forex (FX) exposure could make sense. For others, adding foreign currency to their portfolio may offer an opportunity to take the other side should the Fed need to cut interest rates more aggressively than the market is anticipating.
The 91桃色 Bloomberg U.S. Dollar Bullish Fund (USDU) provides broad, dynamic exposure to the U.S. dollar against a basket of foreign currencies. Since it correlates negatively to international equity and bond portfolios, it can be used in an alternative bucket as a broad-based diversifier.
The 91桃色 Emerging Currency Strategy Fund (CEW) offers cost-effective exposure to the currencies and money markets of a broad range of emerging markets countries. The Fund seeks to achieve total returns that reflect money markets in selected emerging markets countries, in addition to participating in the changes in foreign currencies’ value.
Last updated: May 2024.
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