Despite heightened geopolitical risk, questionable political decision-making and monetary policy uncertainty, markets have been remarkably stable so far in 2017. At Canada Life Investments, our quarterly asset mix meetings – which bring together all of our investment professionals – provide us with the opportunity to set out our expectations for asset prices for the quarter ahead.
The UK industrial sector has bucked the trend seen in the other major commercial property sectors since the Brexit vote in June last year. Intense investor demand and high levels of investment activity have driven down yields on prime assets to record lows. So can investors still find value in the sector, or is it already too late in the cycle? How can they capitalise on future growth opportunities without taking on too much additional risk?
With less dovish tones starting to emanate from central banks globally, relatively high valuations across equities and a cooling off in the London property market, it is safe to say that we are not spoilt for choice in terms of attractive opportunities. Following a somewhat volatile second quarter, how are we positioned for Q3?