Sovereigns and corporate fixed income investments are inextricably linked through economic and market forces. Too often a country’s economic risk profile can be mispriced in fixed income markets due segmentation of these sectors
When deciding on an investment strategy the temptation may be to follow the herd where there is safety in numbers, but sometimes it’s better to take the road less travelled.
We find inefficiencies in markets using a series of strategies that maximise returns for a given level of risk.
Maintaining flexible, long/short exposures across the credit markets, and limiting duration risk is the best way forward investors in today’s challenging fixed income markets, says Charmaine Chin, managing director and head of credit, relative value and event-driven strategies at K2 Advisors, part of Franklin Templeton Investments, in the article below.
We talked to David Clott, head of global convertibles at Aviva Investors and asked him a few questions…
The collapse of Lehman Brothers in September 2008 triggered the onset of the global financial crisis, its scale taking almost everyone by surprise. What lessons have fund selectors learnt from its devastating impact, nine years on?
A poll from German asset manager Union Investment has found that German institutional investors are more than three times as risk-averse as their peers in neighbouring countries, with 72% of Germans considering ‘safety’ the most important criterion when making investment decisions.
About 61% of all emerging market funds are holding positions in Samsung, according to an Evestment report. Any company misstep could have a widespread impact.
You often hear the old adage “it’s different this time”, but 10 years on from the start of the global financial crisis, are we actually at risk of repeating the same mistakes?
While markets could remain complacent and expensive for some time to come, recession risk is rising, says asset manager Robeco. Fidelity is also increasingly cautious, expecting “the longest equity bull market since World War II” to end within 18 months.
Sovereign wealth funds missed their return targets for the second year in a row in 2016, according to a study by Invesco. By focusing too much on the short term, they risk a longer spell of underperformance.
The use of index trackers by professional investors has skyrocketed in recent years. Investors have been attracted by the easy access to ETFs, their transparency and of course their low fees. But what do they exactly use ETFs for? Greenwich Associates asked 132 institutional investors the question.
