The record run of flows into emerging market debt is continuing, but is losing pace as investors are taking profits against a backdrop of rising US rates and some geopolitical issues.
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?
Multi-asset, or asset allocation funds, have been an investor favourite for years. But why would a professional investor invest in these one-stop shop funds?
Emerging market bonds have been on a strong run this year, and Europe’s investors think the rally isn’t over yet.
Emerging market equities and bonds have outperformed their developed rivals by a large margin year-to-date, resulting in a surge in inflows. An acceleration in global growth and the absence of immediate macro concerns seem to underpin the current rally, but there are some obvious elephants in the room.
Many investors invest in absolute return funds to reduce correlations with equity and bond markets. In this video interview, Frank Reisbol, managing director of Banque Carnegie Luxembourg, argues these investors are fooling themselves.
In part two of this video interview, Frank Reisbol reveals what an alternative Ucits strategy needs to pass his strict litmus test.
As recently as April, high yield bonds registered the strongest net inflows since July 2013, the month after the taper tantrum sell-off. But fortunes for the asset class reversed sharply in May, according to Morningstar’s latest fund flows figures.
Worries about the consequences of Brexit have prompted many fund buyers to increase their allocation to cash and hedge their long positions. However, some put some risk back on at the end of last week as polls swinged back towards ‘Remain’.
Frank Reisbøl, MD of Banque Carnegie Luxembourg, is always looking for high-conviction, often smaller, managers for his multi-jurisdictional clients. But not those who chase every last basis point, since that could risk his main objective – value preservation.