Lazard AM: Nordic bonds still offer positive return potential
Positive returns on investment-grade bonds have been hard to come by in the West. The Nordic market is one of the few exceptions, says Michael Weidner, head of European fixed income for global asset manager Lazard Asset Management. He especially likes Danish mortgage bonds.
‘Nordic bonds are a market segment with high credit quality, high liquidity and some extra yield without additional risk,’ he says. For Weidner, this market is one of the ultimate safe havens for risk-sensitive bond investors.
AXA IM: Why central banks want to introduce a digital currency
Central bank digital currencies may soon become a reality. Plans for the creation of Central Bank Digital Currency (CBDC) are multiplying. This is profoundly different from bitcoin-style cryptocurrencies.
Bond return prospects bleaker than ever
Bonds are among the best performing asset classes of the past 40 years. But it’s not unlikely the next 40 years will show a radically different picture. 2021 and 2022 could even yield negative returns as above-average economic growth and rising inflation could push bond yields up from their record-low levels.
The table below shows that bonds have done great over the past four decades. However, returns have fallen steadily from 222.7% in the period 1980-1989, to 109.9% in 1990-1999, to 84.7% in 2000-2009 and to 44.5% in the ten years from 2010-2019.
Luxembourg banks play it safe amid SFDR uncertainty
With less than a week until the SFDR reporting deadline, client advisers and asset managers in Luxembourg and internationally are gently testing the water. From how to classify different funds and what to report to investors, the financial industry is progressing with caution.
‘These two megatrends are crucial for investors’
Disruption is wiping out entire sectors and companies. While winners are hard to predict, using megatrends such as digitalisation and ageing to identify the losers in advance is the best approach, says Henk Grootveld, head of trend investing at Lombard Odier IM.
UBS AM: Key macro curves confirm more procyclical strength
The key macro curves are all pointing in the right direction.
Lux fund assets hit €5 trillion
Assets invested in funds domiciled in Luxemburg have exceeded the €5 trillion mark for the first time. At the end of January, asset reached a record €5050 billion according to figures published by the CSSF.
PGIM Investments: China – A Promising Market For Healthcare Innovation
Our Global Equity team believes the Chinese healthcare sector offers compelling growth opportunities with strong long-term catalysts, especially in the pharmaceutical and biotech arenas.
‘EMD to profit from economic recovery’
Emerging market debt is perfectly placed to benefit from the economic recovery that will follow the current lockdowns. Especially local high-yield bonds are in a sweet spot, says Capital Group’s Luis Freitas De Oliveira.
European dividend pay-outs sink to lowest level since 2009
Dividends paid by European companies on an underlying basis have sunk by more than 28% in 2020 to €141 billion, according to the Janus Henderson Global Dividend Index. This is the lowest figure since 2009.