archive-com.com » COM » D » DELAWAREINVESTMENTS.COM

Total: 288

Choose link from "Titles, links and description words view":

Or switch to "Titles and links view".
  • What to expect when you’re expecting a strong dollar
    growth for the global economy This is very problematic for countries like Russia The dollar is pushing inflation lower globally at a time when many countries are already dealing with near deflationary conditions If this isn t met with increasing central bank liquidity elsewhere this could be a major black hole for the euro zone and Japanese economies whose only source of inflation has recently been found in commodities A strong dollar is putting pressure on U S exporters and multinationals particularly on revenue streams that are booked in currencies other than the dollar All else being equal a rising dollar makes dollar liabilities rise in value while reducing the value of revenues earnings in foreign currencies This mismatch can be problematic and is a variant of the so called original sin concept In a financial sense the idea of original sin applies to a situation in which a borrower uses domestic funds to borrow abroad Forcing further unorthodox policy in Asia may in fact place more disinflationary pressure on the globe through the exporting of finished goods at lower relative prices due to currency adjustments Reading the signs is not always a perfect science As suggested in the above lists it s anything but clear what a strong dollar might do in this cycle Two basic questions Will the dollar remain sustainably strong Should it The dollar has had the tendency to move in alarmingly steady trends often lasting five years or more Many of the factors that lead to dollar strength are currently in place and we believe are likely to stay there all else being equal The biggest components are euro and yen weakness which today s markets are taking as a given With that said the dollar s uptrend is unlikely to be very smooth because volatility should be on the rise in global markets What s more the chance for the Fed to blink in the face of economic weakness or a U S slowdown still looms on the horizon The Fed may want to normalize policy which would further encourage dollar strength as nominal rates rise but global economies are still broadly weakening The U S can certainly decouple from other economies for short periods of time but the dollar s influence might actually end up being the reason it can t decouple for long There are many potential problems and benefits that come from dollar strength The most important of the problems is global deflation When you add further attempts by Asian businesses to export their own deflation it becomes clear that escape from the Fed s policy of zero interest rates might be very difficult indeed This all suggests that dollar strength may actually be the one thing the Fed and global markets can t tolerate Anyone selling a certain strong dollar scenario today might actually just be selling dollars at the highs Expect to be surprised The dollar feedback loop is a potential Catch 22 A look at the sequence of

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/expecting-a-strong-dollar (2016-04-26)
    Open archived version from archive


  • A selective approach to value investing
    term turnaround we know we have a lot more time to do work on it whereas a short term opportunity we ll focus our attention and make sure all the work gets done in a timely fashion On screen text What comes next Ned Gray CFA Chief Investment Officer Global and International Value Equity Identifying a value universe is simply the first step While we think that value stocks have great potential to achieve our objectives just because a stock is cheap doesn t mean that it s going to outperform We have to understand why the stock is cheap in the first place and focus on those names where we think the opportunities the internal inherent qualities of a company s competitive position far outweigh the risks that the market is currently discounting That means understanding why the stock is out of favor and why we think those individual inherent drivers will eventually come to dominate and bring the company back to fair valuation The views expressed represent the Manager s assessment of the market environment as of November 2014 and should not be considered a recommendation to buy hold or sell any security and should not be relied on as research or investment advice Views are subject to change without notice and may not reflect the Manager s views International investments entail risks not ordinarily associated with U S investments including fluctuation in currency values differences in accounting principles or economic or political instability in other nations Carefully consider the Fund s investment objectives risk factors charges and expenses before investing This and other information can be found in the Fund s prospectus and its summary prospectus which may be obtained by visiting our fund literature page or calling 800 523 1918 Investors should read the prospectus and the summary prospectus carefully before investing IMPORTANT RISK CONSIDERATIONS Investing involves risk including the possible loss of principal Past performance does not guarantee future results Todd A Bassion Portfolio Manager View bio More from Todd A Bassion Optimism amid a global view of equities Mixed progress for Abenomics Big pharma Moving beyond the patent cliff See all from this author See all from this team Todd A Bassion biography Todd A Bassion CFA Vice President Portfolio Manager Todd Bassion has worked with the Global and International Value Equity team for more than 15 years He co manages the Global and International Value products and takes a lead role in generating and researching new companies for the portfolios His official sector coverage includes consumer staples consumer discretionary healthcare and telecommunications Prior to joining Delaware Investments in June 2005 as a senior analyst Bassion worked with the team as a senior equity analyst at Arborway Capital and Thomas Weisel Partners and as a research associate at ValueQuest TA Bassion earned a bachelor s degree in economics magna cum laude with an emphasis on business from Colorado College Ned A Gray CIO Global and International Value Equity View bio More from Ned A

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/a-selective-approach-to-value-investing (2016-04-26)
    Open archived version from archive

  • Uncovering value in today’s muni bond market
    addressed And realizing that we re in a period where there continues to be belt tightening mentality or fiscal austerity eventually this backlog of infrastructure projects will be addressed So I m talking about the replacement of bridges repairing of roads things of that nature Water in particular is an extremely important area one that threatens the economies of many states in the southern and western part of the country One of the areas we ve seen innovation is in transportation particularly toll roads where we have public private partnerships or we call them P 3s And I suspect we ll see some of these projects be financed in the traditional way but many of them may have new innovative ways of financing their projects And P 3s I believe will be one of the ways we see these deals come to market in other areas The views expressed represent the Manager s assessment of the market environment as of October 2014 and should not be considered a recommendation to buy hold or sell any security and should not be relied on as research or investment advice Views are subject to change without notice and may not reflect the Manager s views Fixed income securities and bond funds can lose value and investors can lose principal as interest rates rise They also may be affected by economic conditions that hinder an issuer s ability to make interest and principal payments on its debt Bond funds may also be subject to prepayment risk the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity potentially forcing the Fund to reinvest that money at a lower interest rate Substantially all dividend income derived from tax free funds is exempt from federal income tax Some income may be subject to the federal alternative minimum tax AMT that applies to certain investors Capital gains if any are taxable Carefully consider the Fund s investment objectives risk factors charges and expenses before investing This and other information can be found in the Fund s prospectus and its summary prospectus which may be obtained by visiting our fund literature page or calling 800 523 1918 Investors should read the prospectus and the summary prospectus carefully before investing IMPORTANT RISK CONSIDERATIONS Investing involves risk including the possible loss of principal Past performance does not guarantee future results Greg Gizzi Senior Portfolio Manager View bio More from Greg Municipal bonds and rising interest rates A historical perspective Despite periods of cooling in 2015 municipals generally see support Municipal markets at midyear A focus on the Fed rating agencies See all from this author See all from this team Greg Gizzi biography Greg Gizzi Senior Vice President Senior Portfolio Manager Gregory A Gizzi is a member of the firm s municipal fixed income portfolio management team He is also a co portfolio manager of the firm s municipal bond funds and several client accounts Before joining Delaware Investments

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/uncovering-value-in-todays-muni-bond-market (2016-04-26)
    Open archived version from archive

  • Despite macro pressures in Europe, ample opportunity remains
    to benefit from any recovery that does take place but who also have ample protection in terms of access to resources and markets outside of the euro zone as well Anu Kothari Senior Equity Analyst European companies have amongst the best brands globally They are big innovators and they also know how to operate internationally Each European market is very small and so they are used to operating in international environments Michael Friedman CFA Senior Equity Analyst If you look at the macroeconomic cycles where I m seeing opportunity is in Western Europe with the cyclical companies companies like construction or autos And the reason I say that is because Europe has been very very weak for several years and it is just starting to stabilize So as we stabilize and start to see growth some of the stocks might still be mispriced Todd Bassion CFA Portfolio Manager European markets tend to move in significantly different directions so you have the U K accelerating to the upside at the same time you have Italy back in recession But our motto is adversity creates opportunity so we are looking for those exact type of dislocations in markets where we can find good bottom up fundamental ideas The views expressed represent the Manager s assessment of the market environment as of October 2014 and should not be considered a recommendation to buy hold or sell any security and should not be relied on as research or investment advice Views are subject to change without notice and may not reflect the Manager s views International investments entail risks not ordinarily associated with U S investments including fluctuation in currency values differences in accounting principles or economic or political instability in other nations Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume Carefully consider the Fund s investment objectives risk factors charges and expenses before investing This and other information can be found in the Fund s prospectus and its summary prospectus which may be obtained by visiting our fund literature page or calling 800 523 1918 Investors should read the prospectus and the summary prospectus carefully before investing IMPORTANT RISK CONSIDERATIONS Investing involves risk including the possible loss of principal Past performance does not guarantee future results Ned A Gray CIO Global and International Value Equity View bio More from Ned A Gray A selective approach to value investing Political change brings new optimism in Japan Potential portfolio impacts of a rising rate or inflationary environment international equity See all from this author See all from this team Ned A Gray biography Ned A Gray CFA Senior Vice President Chief Investment Officer Global and International Value Equity Ned Gray manages the Global and International Value Equity strategies and has worked with the investment team for more than 25 years Prior to joining Delaware Investments in June 2005 in his current position Gray worked with the team as a portfolio manager at

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/despite-macro-pressures-in-europe-ample-opportunity-remains (2016-04-26)
    Open archived version from archive

  • Capital spending: In search of momentum
    the highest level since 1999 data Dealogic via Dow Jones Uncertainty about economic growth is a notable headwind if growth comes to a halt again spending that is not absolutely necessary is likely to be trimmed back The appetite for buybacks As of late stock buyback programs have enjoyed much support as a use of excess cash Despite their role in potentially improving earnings per share performance buybacks often come with drawbacks particularly if other uses of capital such as capital investments are forced to take a back seat It s not hard to see why buybacks have entered the picture They make economic sense in today s low rate environment which allows companies to finance repurchases at reasonable terms What s more repurchases carry fewer administrative hurdles when compared to capital spending Capital projects can be risky and can take a long time to approve and implement whereas buybacks can be approved at a single shareholder meeting and are more easily executed Still the recent volume in buybacks doesn t change the natural pecking order of corporate spending in which organic investments traditionally come first followed by acquisitions and then buybacks and dividends With this hierarchy in mind we believe the recent flurry of buyback activity combined with the prospect of stronger economic growth increases the likelihood that companies may turn to other forms of spending including capital expenditures So where are we now As important as they are capital expenditures are difficult to forecast That said we think it s fair to say that we may be in the earlier stages of the capex cycle with 2011 as the likely starting point It helps here to keep in mind that U S total capex as a percentage of nominal gross domestic product remains slightly below its long term average supporting the view that spending has yet to move out of the early phase of the cycle In the next couple of years if capex begins moving along in the cycle we hope to see broad based gains that are truly indicative of growth while at the same time making sure companies maintain financial discipline As it stands today conditions remain relatively supportive with good credit availability record cash on corporate balance sheets and elevated corporate profits As we factor capex into our daily work we think good investment opportunities will largely be driven by companies that spend responsibly without jeopardizing sustainable cash flows As value investors we believe that too much capital spending can sometimes be a drawback particularly when companies overbuild and fail to maximize the potential of those new assets or when demand proves lower than anticipated for their goods and services At the sector level possible beneficiaries of healthier capital spending could include software makers industrial equipment providers semiconductor companies and companies involved in engineering and construction The views expressed represent the Manager s assessment of the market environment as of October 2014 and should not be considered a recommendation to buy hold or sell

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/capital-spending-in-search-of-momentum (2016-04-26)
    Open archived version from archive

  • Country watch: Mexico
    other companies access Mexico s existing pipelines Furthermore investors should be aware that not all Mexican citizens accept these developments with open arms Indeed there is a certain amount of pessimism in the air and many people believe little will actually change in the Mexican oil industry Their doubts have been fortified by years of having to endure monopolies and severe regulations There is also a growing though perhaps unreasonable fear that by bringing in companies from abroad Pemex will generate less tax revenues reducing what has been a major source of funding for Mexico s needs in education healthcare and overall economic growth Going south of the border sticking to our process The investment implications of Mexico s energy reforms are likely to play out slowly in our view The changes underway are big and even though the legislative work is largely done the implementation steps will take time Overall we think it s worth mentioning that the changes are not mere window dressing they are in fact official pieces of law This implies that they will be carried out faithfully But as we know from experience the success of sweeping reforms depends on how well they are executed Execution will be critical How will the initiatives be translated into action How will decision making be coordinated among the hundreds if not thousands of people involved Such questions will be on our minds as we move ahead As the reform unfolds we see at least two other developments that are worth tracking International companies will likely be exposed to broad opportunities up and down the energy supply chain engineering services production equipment transportation drilling and so on When a company chooses to engage in Mexico our analysis will determine if the company s plan makes sense within the context of its existing operations That is to say if a company is moving to Mexico simply for growth s sake without an obvious plan for integrating or leveraging its existing business we might view the transaction with skepticism At the end of the day we will look for firms with healthy fundamentals and we will focus on companies that we believe show the potential to manage international operations in a highly effective way We will tend to favor companies that have sophisticated operations systems flexible structures open communication channels and clear decision making processes The last thing we want to see is a company expand into Mexico without the management tools to support a major undertaking By the numbers As a result of energy reform 15 billion potential for increase in foreign investment annually 100 possible increase in Mexican oil output by 2025 500 000 estimated number of new jobs created Data JP Morgan Chase Citibank Pemex El País September 2014 From open market to monopoly and back again The story of Mexico s oil industry transformation is one of labor disputes boycotts and standoffs between government officials and industry chiefs The commotion dates back to 1924 when oil workers

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/mexican-oil-market (2016-04-26)
    Open archived version from archive

  • U.S. tax code spells potential advantage for municipal income
    can be found in the Funds prospectuses and their summary prospectuses which may be obtained by visiting the fund literature page or calling 800 523 1918 Investors should read the prospectus and the summary prospectus carefully before investing IMPORTANT RISK CONSIDERATIONS Investing involves risk including the possible loss of principal Past performance does not guarantee future results Because the Fund may invest in bank loans and other direct indebtedness it is subject to the risk that the fund will not receive payment of principal interest and other amounts due in connection with these investments which primarily depend on the financial condition of the borrower and the lending institution These Funds may also be subject to prepayment risk the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity potentially forcing the Funds to reinvest that money at a lower interest rate Substantially all dividend income derived from tax free funds is exempt from federal income tax Some income may be subject to the federal alternative minimum tax AMT that applies to certain investors Capital gains if any are taxable The information contained in this video is not intended to be legal or tax advice If you need assistance preparing your tax return please consult a tax advisor Information may be abridged and therefore incomplete Any discussion pertaining to taxes in this communication including attachments may be part of the promotion or marketing of a product As provided for in government regulations advice if any related to federal taxes that is contained in this communication including attachments is not intended or written to be used and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code Individuals should seek advice based on their own particular circumstances from an independent tax advisor Greg Gizzi Senior Portfolio Manager View bio More from Greg Municipal bonds and rising interest rates A historical perspective Despite periods of cooling in 2015 municipals generally see support Municipal markets at midyear A focus on the Fed rating agencies See all from this author See all from this team Greg Gizzi biography Greg Gizzi Senior Vice President Senior Portfolio Manager Gregory A Gizzi is a member of the firm s municipal fixed income portfolio management team He is also a co portfolio manager of the firm s municipal bond funds and several client accounts Before joining Delaware Investments in January 2008 as head of municipal bond trading he spent six years as a vice president at Lehman Brothers for the firm s tax exempt institutional sales effort Prior to that he spent two years trading corporate bonds for UBS before joining Lehman Brothers in a sales capacity Gizzi has more than 20 years of trading experience in the municipal securities industry beginning at Kidder Peabody in 1984 where he started as a municipal bond trader and worked his way up to institutional block trading desk manager He later worked in the same capacity at

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/us-tax-code-spells-potential-advantage-for-muni-income (2016-04-26)
    Open archived version from archive

  • What’s next in the Fed’s path to normalization?
    fed funds forecast Additionally the authors derived expectations from financial futures eurodollars and overnight index swaps or OIS and noted that the market s implied path was more closely in line with the 25th percentile of the Fed dot forecast as opposed to the median View chart Chart 4 Peculiar changes to the yield curve in the last year This divergence indicates that market participants put much weight on what Yellen is saying given the weak economic backdrop One of the key lessons of the 1930s was that hiking too early was a major policy error At today s zero bound in rates with limited fiscal policy options and a 4 5 trillion balance sheet the risks to the normalization path currently are asymmetric Hike too early and risk another double dip recession with deflationary implications or keep rates low for longer and fight inflation later if and when it arises given unprecedented tightening potential View chart Chart 5 A historical view of tightening cycles The yield curve is also pricing in an interesting picture As the Fed started talking about normalizing rates the front end of the curve repriced higher but the long end rallied Chart 4 Peculiar changes to the yield curve in the last year Data Bloomberg In researching previous hiking cycles since 1983 we found that the median cycle lasted 1 4 years and the fed funds rate was raised 2 per year However we take the September 2014 FOMC statement at face value and expect this cycle to be different in terms of magnitude Chart 5 A historical view of tightening cycles Data Bloomberg and Kansas City Fed When the Committee decides to begin to remove policy accommodation it will take a balanced approach consistent with its longer run goals of maximum employment and inflation of 2 The Committee currently anticipates that even after employment and inflation are near mandate consistent levels economic conditions may for some time warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run Federal Reserve s statement September 2014 If the Fed hikes rates because of the improvement in employment the new LMCI would be consistent with previous hiking cycles when it moves into positive territory Based on recent trends and research published by the Kansas City Fed the crossover is likely to occur in late 2015 Another way to think about timing is to infer what considerable period meant during previous cycles Then Fed Chair Alan Greenspan referred to a considerable period in August 2003 decided the Fed could be patient in January 2004 assumed that policy accommodation could be removed at a measured pace in May 2004 and tightened in June 2004 During that episode considerable period meant 10 months If asset purchases end in October 2014 and considerable period is taken out that implies lift off in August 2015 However the Fed could wait for the December meeting which has a press conference to remove it A similar preference

    Original URL path: http://www.delawareinvestments.com/individual-investors/literature/insights/2014/whats-next-in-the-feds-path-to-normalization (2016-04-26)
    Open archived version from archive



  •