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Despite the Federal Reserve (Fed) leaving US interest rates unchanged this week, there is still a possibility it could raise rates later this year. Whatever the outcome over the next few months, it is important for investors to diversify their portfolios to withstand an increasing interest rate environment when this eventuality materialises.
Islamic finance, a generic term for financial transactions that comply with Islamic principles, has been one of the fastest-growing areas of the financial services sector with an estimated asset value of over US$1.8 trillion as of April 2014 and continues to grow at an annualized rate of nearly 20%1. Since the 1990s, Islamic finance has grown from a focus on Shariah-compliant commercial banking and project finance to encompass a range of products and services that are now accessible by individual and institutional investors, chief among which are “Sukuk.”
Passive stock investing has been in vogue following the global financial crisis. A tidal wave of central bank-generated liquidity has in part found its way into exchange-traded funds (ETFs) and other passive investments. Although this trend appears to be moving inexorably in one direction, we believe it may be a mistake to count out active global equity investing—particularly once interest rates begin to normalize.
In managing a range of fixed income investments, it is essential that asset managers realise that non-financial matters, such as environmental, social, and governance (ESG) issues play an instrumental role in a company’s long-term performance, strategy, and sustainability.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?