With the eurozone currently experiencing deflation, inflation-linked bonds are probably not the first thing on the mind of investors. However, as Brent crude is now back at $48, the only way for inflation is probably up. So should investors start thinking about protecting their portfolios against price rises?
As the eurozone has been flirting with deflation this year, appetite for inflation-linked bonds has been understandably lacklustre. However, as the oil price started a surprise ascent in April, interest in the asset class rose accordingly. With the oil price now below $50 again, investors are once again abandoning the asset class.
There are three certainties about Italians: they eat pasta, they revere their mothers, and they invest in bonds. As Italian government debt of roughly €2.7trn is the highest in Europe in nominal terms, there is no shortage of the last of these.
At our Pan-European Congress in Rome last month, we asked delegates how they deal with the volatility of currency markets. Do they hedge or do they take active currency bets?
At our Pan-European Congress in Rome, some 81% of delegates said they consider active share an important metric in their fund selection process. Here are some reasons why you should (not) care about active share.