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Author Archive for Van Luu


Pension funds – are you making the most of FX?

Professional Pensions recently interviewed our experts about the ways pension funds can harness the returns available from FX and currency management. In the final instalment of the Wire’s three-part currency series, hear from Van Luu and Mirjam Klijnsma.   Should pension funds be holding exposure to safe-haven currencies? If so, what’s your outlook?   Luu: Due

August 18, 2017 Categories: Currency, Implementation, Investment Strategy
Don’t overlook currency management in a multi-asset portfolio

Don’t overlook currency management in a multi-asset portfolio

As the summer holiday season approaches, Van Luu explains why the euro looks attractive for multi-asset portfolios in the long-term.   Don’t overlook currency management in a multi-asset portfolio: Spotlight on the Euro   As the holiday season approaches and people set off to catch some summer sun (Greece, Italy, Spain anyone?) it seems as

Jul 20, 2017 Categories: Currency, Implementation, Investment Strategy
Life in a low return world: every basis point counts

Life in a low-return world: Every basis point counts

Last time I explained the benefits and variable scenarios of currency hedging – both static and dynamic. As we saw, the opportunities available in currencies can often be overlooked within an investor’s core multi-asset strategy. We think there are four strategies that can be employed to manage risks and make the most of the return

Jul 12, 2017 Categories: Currency, Implementation, Investment Strategy
Currency hedging can prove profitable in a low return environment.

Life in a low-return world: To hedge or not to hedge?

Currency Strategist Van Luu shows how thoughtful management of currency risks and opportunities can help investors reach their objectives, despite the low-return environment.   Russell Investments believe we will see low returns over the next seven to ten years. Pension funds, endowments and individuals may have to adapt their behaviour and strategies or else risk

One week after the UK Election: Scenarios for sterling and Brexit

One week after the UK Election: Scenarios for sterling and Brexit

Theresa May has pushed forward with EU negotiations despite it being widely expected that she will not last a full term in office The pound could fall even lower in the short-term, but we think that the downside is contained A ‘softer’ Brexit may be positive for sterling In the event that Britain leaves the

The economic outlook according to stocks and bonds: will it be rosy or will it be bleak?

With buoyant equity markets on the one hand and cautious bond markets on the other, Russell Investments’ strategist Van Luu analyses which asset class is right, if any. Asset class divergence We have reached a point where equity and bond markets are diverging significantly. Global equity markets trade close to all-time highs while bond markets

Trump vs. Emerging Markets: Who might win?

The initial slump of Emerging Markets assets following Donald Trump’s election appears to be waning. The apparent recovery indicates that not all of President Trump’s economic policies are bad for Emerging Markets (EM) countries. Those which depend on exporting manufactured goods to the U.S., like Mexico and China, may suffer. Other developing nations, in particular

Mar 1, 2017 Categories: Multi-asset

Why we (and others) like Emerging Market currencies and bonds

After years of difficulties and underperformance, Emerging Market (EM) assets have the makings of a turn-round. In this blog, we focus on EM currencies and bonds. We explain our long-term positive view, using our appraisal process focusing on the business cycle, asset valuation, and investor sentiment (Cycle, Value and Sentiment or CVS). We also review

Aug 11, 2016 Categories: Investment Strategy, Markets

The cost of currency: Finding potential opportunity in risk

Exchange rates are buffeted by political decisions and can seem utterly unpredictable, as recent events illustrate (see below). Pension funds and other asset owners are exposed to exchange rate fluctuations through their international portfolio holdings. Many of them see currency risk as an unwelcome by-product of international diversification, and they may try to reduce or

Aug 4, 2016 Categories: Market Updates

Currency investing: Skill versus smart beta

The real possibility of Brexit has turned investors’ attention to the recent weakness of sterling and currency developments in general. Unsurprisingly, I have fielded more questions than usual on foreign exchange markets over recent weeks. Very often, currency is a mere afterthought in the deliberations of investors. I think this is an opportunity missed. Left

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