Active ETF Insights: The Japanese & European banks opportunity
In this video, Nader Naeimi, Head of Dynamic Markets at AMP Capital, analyses the performance of European and Japanese banks and the investment opportunities they might present in a rising interest rate environment.
- Globally, the banking sector has been under pressure due to zero interest rate policies and bond yields progressively declining.
- Japanese and European banks represent a significant investment opportunity as they have experienced these problems most acutely.
- In both markets, price-to-book valuations are currently well below 1, yet there are clear signals that we have likely seen the lows of bond yields and interest rates; offering a strong environment for banks to benefit and outperform.
- DMKT is taking advantage of these opportunities by investing in Nomura NF Topix-17 Banks ETF (JPY) and LYX ETF EURSTX600 BANKS (EUR).
- The JPY and EUR currency exposures are managed separately to reduce the risk that gains from the underlying exposures are lost on unmanaged currency exposures.
- Investing in DMKT provides clients with the flexibility to take advantage of global opportunities as they arise.
For more information on DMKT view this page or request a call.
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