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The increased likelihood of natural disasters due to climate change does not make investing in catastrophe bonds (cat bonds) any less attractive. On the contrary, experts say that due to the rising capital needs of reinsurers and higher premiums, returns can actually increase.

The surge in global equities is primarily driven by large-cap stocks. Smaller companies have not fared as well, and this disparity has persisted since 2021, Morningstar Fund Radar’s analysis shows.

iShares funds topped the list of asset-gatherers last month, while funds offered by Swiss bank Credit Suisse led those facing significant redemptions, according to data compiled by Morningstar.

Bonds issued by some of the world’s poorest countries have enjoyed a robust start to 2024, despite the backdrop of elevated US interest rates.

Dividend funds have long been a stalwart for investors seeking reliable income. Traditionally, these funds focus on stocks that offer high and dependable dividends, often from companies with strong cash flow, solid market positions, and healthy balance sheets. 

In the US, a select group of seven stocks have garnered much attention since last year for their impact on stock market performance. This illustrious group, known as the Magnificent Seven, includes Microsoft, Apple, Alphabet, Amazon, Nvidia, Meta, and Tesla. Collectively, these tech giants accounted for 32.5 percent of the S&P 500 index as of the end of April 2024.

This week, we look at bond funds that can freely explore the entire fixed-income and currency universe in search of the best opportunities. Given that bonds, like other types of investments, can be a challenging asset class to predict, it might be a wise choice to let a team of experts decide how to position a portfolio.

Increased concentration in equity markets has emerged as a significant concern for investors. The rising dominance of US companies globally, notably the pronounced influence of the technology sector in major stock indices, is typified by the hegemony of a small cadre of prominent stocks, colloquially known as the “Magnificent Seven.” This phenomenon continues to captivate market participants, though signs of vulnerability in the supremacy of these seven market stalwarts are beginning to surface.

Ecology funds, which invest in companies addressing environmental challenges, peaked in 2020 and 2021 but later saw declines in returns and assets under management.

The start of 2024 has unfurled a rather promising chapter for global high-yield bonds. While the allure of hefty initial yields continues to draw the investor’s gaze, the relatively narrow spreads hint at an underestimation of the lurking credit risks.