How to weather challenging fixed income markets?

Benjamin Melman, Head of Asset Allocation and Sovereign Debt, Edmond de Rothschild Asset Management

 

Questioning and uncertainties on the evolution of the economic, monetary and political cycles have led to renewed volatility on fixed income markets. In this context of severe movements, the need for active management and diversification is crucial.

 

ESG & Performance: The end of misconception

Sonia Fasolo, Echiquier Positive Impact & Echiquier Major SRI Growth Europe fund manager, La Financière de L'Echiquier

 

La Financière de l'Echiquier recently released a study showing the strong relationship between good ESG scores and performance. Committed to responsible investment for more than 12 years, we felt both legitimate and eager to bring our contribution to the never-ending debate about ESG and performance. This study has been conducted over the past nine years and relied on the ESG scores of around 500 companies. During this presentation, we will discuss the key findings of this report. We will focus on what makes us different when it comes to responsible investment (ESG integration in all our funds, our proprietary methodology which overweights governance...) and how we create value out of it in our SRI funds.

 

Convertible Bonds in uncertain markets / Why Convertibles now?

Davide Basile, Portfolio Manager, RWC Partners

The increased uncertainty over the last year has caught the attention of many market participants as volatility has returned quite dramatically to financial assets. Asset allocation decisions and market timing, while always important, are of greater significance in these periods where divergences between asset classes are elevated. Convertibles can offer a valuable tool to investors, especially in a period where the dynamics are pointing to a period of outperformance for the asset class versus static balanced portfolios of equities and bonds only. Davide Basile, the Portfolio Manager for convertibles bonds at RWC, analyses the benefits of convertibles from a few different angles to assess the reasons why he believes an investment in the asset class is compelling and will potentially remain so for a protracted period.

 

Flexible and unconstrained investments in credit markets

Pierre Verlé, Head of Credit and Fund Manager, Carmignac

Pierre Verlé, Head of Credit and Fund Manager of Carmignac Portfolio Unconstrained Credit, will discuss how his unconstrained approach, characterised by completely non-benchmarked, active, flexible and opportunistic management, is crucial to navigate credit markets with success.

 

EMD Total Return: An efficient "all-weather" strategy

Damien Buchet, CIO Total Return, Finisterre Capital

2018 was a turbulent year for EM fixed income, marked by global headwinds and EM specific event risks. More recently, we find ourselves at a crossroad for EM assets after a strong rally triggered by fresh expectations of a powerful global policy "put" by the US, EU and China in the face of slowing growth momentum. However, potential signs of stabilising growth in Europe, China and EMs coupled with a less buoyant US economy could keep the US dollar stable and sustain global risk appetite. Damien will share his views on the outlook for emerging market debt, the parts of the market that he is finding interesting and how he is positioned given this market backdrop.

 

Sycomore Partners: Flexibility is a Driver to Generate Alpha

Emeric Préaubert, Founding Partner & Co-Head of Portfolio Management, Sycomore AM

Sycomore Partners is a concentrated equity or cash stock picking fund with exposure to equities ranging from 0 to 100%. It aims to achieve consistent performance over a recommended investment horizon of five years. To do this, its investment process is based on the selection of our strongest convictions: the equity exposure rate varies according to our investment ideas and the market context. Three factors prevail in our investment decisions: the quality of the company's fundamentals, the discount in the value of its share price compared to its intrinsic value and its momentum.

Emerging Market Government Bonds: How to Solve the Big Challenge of the Low Interest Rate Era

Matthew Sethard-Wright, CEO and Partner, 1167 Capital

Across Europe, today's savers face an unprecedented challenge: European government bond yields are at historic lows. In some countries, they are even negative - meaning investors are paying governments for the privilege of lending to them. The result is that Eurozone government bonds are no longer able to perform their traditional role of funding pension and savings income. Fortunately, the maturing of the global financial markets over the past two decades means that a there is a solution: to diversify government bond holdings beyond the developed markets and into the emerging markets. 1167 Capital was founded in 2016 by a team of highly experienced global bond investors and is dedicated to helping clients do just this. The firm offers a suite of actively managed products focused on Emerging Market government bonds.

 

Navigating Emerging Markets Fixed Income In Search Of Alpha

Uday Patnaik, Head of Emerging Market Debt, Active Fixed Income, Legal & General Investment Management

Emerging Market economies constitute approximately half of global GDP and remain the key drivers of global growth. This sizeable and growing asset class offers a wealth of opportunity to investors across regions, sectors, ratings and currencies. Moreover, from an investment perspective, EM bonds offer a higher yield than developed market securities with an equivalent credit rating. Yet, many investors have virtually no exposure to EM fixed income assets. We will look to de-mystify this asset class, discuss our philosophy to investing in EM, and our framework for achieving enhanced yield with superior volatility adjusted performance.

Riding the Business Cycle: a dynamic approach to fixed income investing

Federico Verdirrame, CFA, Client Relationship Manager, UBS Asset Management

Overview of our fixed income platform with a focus on flexible solutions that can help clients to navigate in a world of low interest rates and challenging markets. UBS Global Dynamic Bond Fund is one of these solutions: a global total return strategy designed to generate returns in different market environments through a well diversified portfolio of government, corporate and convertible bonds with an average investment grade rating. The portfolio manager Kevin Zhao, Head of Global Sovereign and Currency Team at UBS AM, invests both in developed and emerging countries taking exposure to different currencies.
The result is a quality strategy with an average investment grade rating, no financial leverage and an exposure to global fixed income markets.