Sterling has taken a hit and yields on 10-year gilts initially dipped, but the main FTSE stock index edged higher, recouping early losses, as the UK woke up to anything but a ‘strong and stable’ government.
Sébastien Saba, head of fund selection at Meeschaert family office Belgium, reveals why he is generally unmoved by volatility, and explains his preference for boutique funds.
Low-volatility funds have been in great demand over the past few years, with investors continuing to pour in money while pulling out of other equity funds, according to a Morningstar study. Considering the long-term performance of low-vol strategies, that is hardly a surprise.
An index said to represent levels of fear on the markets has hit its lowest levels since before the eruption of the credit crunch after trending lower in recent weeks.
As the world is nearing a confrontation between two nuclear powers, the VIX index of volatility fell to a 10-year low in an convincing display of indifference.
Three quarters of institutional investors in Europe are planning to beef up their allocations to so-called alternative risk premia, or smart beta, according to research by Cerulli. But what factors are most sought after is determined by investors’ nationality.
The investment industry has had to cope with many irregular twists and turns in recent years, in the wake of economic crises and geopolitical upsets. BNP Paribas IP’s François Hullo’s job is to try to predict the shape of things to come…
Value stocks were the stellar performers in all equity markets in 2016. The three factors that had shown most outperformance in recent years, however, disappointed investors last year.
Ever get the feeling you’ve been cheated? As I write, the masses are rebelling against a momentous decision that has thrown the free world off its axis… and that’s just the changing shape of the Toblerone.
Bankia’s head of funds-of-funds, Alvaro Martín Sauto, explains why he believes we should not be paying more than eight basis points for an actively managed government bond fund, and talks about his quest to get clients to accept more volatility.
Returns from alternative Ucits funds have been disappointing over the past couple of years. But perhaps fund selectors have to blame themselves for this.
Besides higher-yielding bonds, investing in liquid alternatives is another way to future-proof bond portfolios. But such ‘absolute return’ funds bring potential benefits as well as drawbacks.
