Investments are productive means to use resources. In the financial world, investing is a productive way of managing savings. The investor therefore temporarily removes some of their resources to generate a profit. Therefore, those who receive the capital to manage are specialised and professionally qualified to make these savings productive by investing in financial activities as instructed.
In this blog, we explore how Additional Tier 1 Contingent Convertibles i.e., AT1 CoCos, could provide enhanced returns per unit of risk while providing diversification benefits, making them a potential candidate for core portfolio allocation.
Continue readingAfter a difficult period, multi-asset portfolios now appear to be in a favourable position. A portfolio manager writes about this in the magazine Das Investment. The multi-asset strategy and the mixed portfolio of stocks and bonds Multi-asset portfolios are the result of an investment diversification strategy that typically combines an equity and a bond component within a portfolio. As GAP portfolio manager Georgios Passameras explains, equities are the most yield-oriented investment in the lo ...
Continue readingNot all asset managers believe that the risk of recession has disappeared: what is the situation in their portfolios? The risk of recession has not disappeared In 2024, the risk of a recession in the US and Europe remains real. As we read in "Focus Risparmio", Vontobel's Head of Hybrid Portfolio Management, Gianluca Ungari, outlines the possible scenario of an economy in a mild recession, not least because the economic consequences of restrictive monetary policies are usually not ...
Continue readingA manager of an asset management company talks about his investment strategy, which looks with interest at the intermediate bond segment (rated between B and triple B). High yield bonds The bullish interest rate cycle has led the bond segment to achieve coupon yields that we have not seen for a long time. According to an article on "Investrends.ch", Laurent Gorgemans, Global Head of Investment Management at Nordea Asset Management, points out that in Europe, for example, the high-yie ...
Continue readingA thematic approach offers a forward-looking perspective for investments, aligning portfolios with world-changing structural trends and providing the potential for higher long-term growth. By leveraging today’s megatrends to identify tomorrow’s mega caps, investors gain valuable insights to funnel into high-growth portfolios.
Continue readingIn recent years, financial markets have shown a positive correlation between equities and bonds, as well as bear markets. This has led to increased interest in private investments, which offer institutional and wealthy investors opportunities for returns and diversification, but are investments reserved for a select few investors due to their high level of risk. Private investments: high risks and rewards Private (or alternative) investments are a financial area typically reserved for institut ...
Continue readingIt is often the case that investors tend to invest in their own country's stock indices because they know them best. However, this can mean that many investors miss out on opportunities that arise in other equity indices. This is one of the points made in an article by Stephan Albrech, director of asset manager Albrech & Cie, published in the magazine "Das Investment". Comparing indices appropriately Albrech starts by highlighting an important aspect when comparing diffe ...
Continue readingAfter posting a strong performance in 2022, buoyed by the performance of energy stocks, the FTSE 100 is having a more difficult 2023. While the S&P 500 is up 13.7%, the FTSE 100 has only gained 5.4% year to date.
Continue reading2023 did not deliver the recession that many were expecting. Consumer strength helped carry the US, as the Federal Reserve (Fed) stayed determined to combat inflation. With credit card debt in the US above pandemic levels, excess savings spent, and inflation below wage growth, the Fed is now acknowledging that inflation can't be the only focus anymore and the risk of an overly restrictive monetary policy on the economy is of equal importance.
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