Investors eye Portuguese government bonds after rating upgrade
To the surprise of many, rating agency Standard & Poor’s (S&P) upgraded Portugal to investment-grade status on Monday. This pushed yields on the country’s government bonds down, and interest from international investors is already picking up.
Ricardo Libano & the active/passive dilemma
Ricardo Libano, a fund selector at the Portuguese wealth manager IM Gestão de Ativos in Lisbon, has a natural inclination to invest in active funds. But it’s not always easy to do so, and sometimes he is left little choice but to select a passive option.
Watch out for inflation in the US as a portfolio disruptor
Investors in Europe tend to be overwhelmingly focused on the risk of deflation. However, on the other side of the Atlantic inflationary pressure is building, and the Fed is more than happy to accommodate that, fund managers at Expert Investor Lisbon warned.
Profile interview – José Luís Borges
Fearing that the current preoccupation with long/short equities will lead to short trades becoming too crowded, José Luís Borges insists on his long/short funds being market-neutral. However, the Lisbon-based head of institutional portfolios at BPI Gestão de Activos is otherwise happy to be overweight equities.
Replacing fixed income with equity market-neutral – a dangerous idea
Some investors replace part of their fixed income holdings with market-neutral equity. Though these funds are supposedly uncorrelated to the equity market, it’s better to choose a diversified approach, argues Rui Machado, alternative investments director at IM gestao de ativos in Lisbon.
Fund favourites – José Luís Borges
José Luís Borges is head of institutional portfolios at BPI Gestão de Activos in Lisbon. His favourite fund, in which he has been investing on behalf of his mainly pension fund clients for seven years now, is the Jupiter European Growth Fund.
Portuguese investors replace bonds with absolute return
Portugal’s fund selectors are switching part of their bond allocations to absolute return funds. They now have between 10% and 15% of their portfolios allocated to absolute return, and that share is rising.