Investors flock to EM debt in yield-starved world
With most global fixed income markets priced for perfection, investors are flocking to the one yield hold-out left: emerging market debt. But are investors really being compensated for the risk?
Arild Orgland
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European equity inflows reach 18-month high
European equities have been in the spotlights for a while, and finally interest is translating into real flows, according to Morningstar data. But there is a caveat to the optimism, which manifested itself last week.
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Multi-strategy funds – failing to deliver
Multi-strategy absolute return funds have been a blockbuster seller with investors for the past few years. But these funds have so far not done what they promise. With one exception.
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Forget about active share – It’s active fee you should focus on
A poll conducted by Expert Investor last year among more than 60 European fund selectors showed that active share is an important fund selection metric for more than 80% of them. However, very few fund houses regularly update investors about the active share of their funds. Should they be more open?
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Portfolio diversification benefits stop at 40 stocks
As soon as a fund’s portfolio reaches 40 stocks, the benefits of portfolio diversification diminish. Therefore, fund managers should strive to have no more than 40 holdings. That’s the conclusion of a study conducted by Nomura Asset Management.
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European equities – still in strong demand, but for how long?
They have been the most popular asset class since the final quarter of 2014, but for how long will the European equity mania continue? Saturation is setting in slowly, but at the same time it seems investors are seeing few alternatives to the asset class yet.
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Arild Orgland – Looking for the like-minded
Industrifinans’s Arild Orgland explains why he is a big UCITS fan and talks about how he scours the fund world for managers who think in the same way that he does.
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Ucits – the right shape for a fund?
Over the past two decades or so, Ucits has become the default fund format for cross-border funds. Since the UCITS IV directive opened up the alternative space for Ucits funds in 2009, the format has become even more ubiquitous. Its dominance has even gone as far that many fund selectors have narrowed down their selection…
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Don’t rely on active share too much, says Arild Orgland – part 2 of 2
The Norwegian financial regulator recently announced that it considers the DNB Norge fund, a supposedly actively managed fund invested in Norwegian large cap equities, a so-called closet-tracker. Orgland used the DNB Norge fund in his client portfolios until last year. He gives his view on the controversy surrounding this fund.
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High yield and equities – in the same classroom?
Equities and high yield bonds follow each other wherever they go, both when it comes to fund flows and returns, as we discussed last week on this site. The Barclays Global High Yield Index even followed stocks down on Monday in the aftermath of the breakdown of talks between Greece and its creditors. So, if…
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Are asset managers out of touch?
Despite the possibly devastating consequences of a Grexit on European equities, asset management companies’ confidence in the asset class remains at record levels, according to the latest EIE Fund Manager Sentiment survey.
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Currency hedge or bet
At our Pan-European Congress in Rome last month, we asked delegates how they deal with the volatility of currency markets. Do they hedge or do they take active currency bets?