Pixabay CC0 Public DomainWalkerssk. China’s Risks on the Road to a Modern Economy
At present, there are three different world powers that dominate their respective regions in terms of trade and growth: the United States, the Eurozone and China. The first two, the United States and the Eurozone, are clear, but the last, China, arouses some uncertainty among investors and management companies, who are monitoring its economy.
Due to the size of its economy, China continues to be a key economy globally, and not just for emerging markets. According to market consensus, China will be fundamental player in the current synchronized global growth, although analysts warn that it could slow it down.
Among its main risks is its high level of indebtedness, both public and private. State companies combine high leverage levels and low productivity in sectors where excess capacity is extreme. “In the wake of the global financial crisis, credit to non-financial entities has gone from 100% of GDP to 165% at present. This government – driven massive injection of credit has stimulated the economy and explains to a large extent the solid economic performance of the last ten years. The high level of indebtedness and low productivity are currently considered a risk,” explains Yves Longchamp, Head of Research at Ethenea Independent Investors.
And its main challenge is to make the leap to a modern economy, a path that has already begun, after the National Congress of the Communist Party of China in October 2017. “The implementation of the structural reforms program once again became a priority. The objective of the Chinese authorities is to direct growth towards quality and not only towards quantity. This will imply a rebalancing that is expected to reduce traditional industries such as steel in favor of new activities such as electric cars and high technology. In the coming months, this strategic adjustment is expected to lead to a slight economic slowdown, as suggested by the recent slowdown in public spending and the tightening of monetary conditions. Should the deceleration become too marked, public authorities have the necessary resources to quickly adjust the approach,” explain sources from Banque de Luxembourg Investments.
Risks and Opportunities
In Longchamp‘s opinion, China lives in perpetual transition. Among reforms proposed by the country there are three that are very interesting for investors, according to Longchamp: “The restructuring and strengthening of state enterprises, the deleveraging of the financial system and the slowdown in inflation of housing prices ; and the eradication of poverty and the improvement of the quality of growth “. These three are national objectives and aim to determine the main economic weaknesses and the fragility of the financial system, as well as to improve the welfare of Chinese citizens. In addition, there is the Chinese government’s desire to control and reorganize some sectors, such as the industrial sector and real estate. Therefore, they are reforms that could open opportunities in very specific sectors, such as financial, industrial or real estate.
However, the management companies are cautious about China. The company Flossbach von Storch identifies the Asian giant as one of the potential risk factors within the equity market, given the country’s rate of indebtedness. “Despite this, we are confident that China’s central government has the muscle to counteract the effects in the case of a recession or crisis,” explainedsources from the management company.
Photo: Trump annopuncing new tariffs. Don’t Buy the Hype Just Yet
Judging by market reactions, talks of trade wars appear to be as dangerous as trade wars themselves. With only some initial tariffs being introduced and talks of many more global markets have seen their fair share of volatility over the last few weeks. While the trade war has been a war of words to this point, we’ve been jogging investor’s memories of the historical relevance tariffs have carried.
The protectionist policy concept is not new and GFG Capital believes that recent market behavior is a good indicator that investors have not forgotten what the last full blown trade war initiated by the U.S. brought us. The Smoot Hawley Tariff Act of 1930 sent the global economy tumbling as reciprocal tariffs enacted by U.S. trade partners did nothing to lift economies from depression, but did just about everything in their power to exacerbate the problems. By 1933 U.S. imports dropped off by 66% while exports decreased by 61%. On a global scale, world trade declined by 66% in 5 years before the Trade Agreement Act in 1934. Clearly not something most investors will forget too easily. And it seems they have not, but now D.C. needs to refresh their memory.
We think the market entered the year knowing trade was going to be a focal point of the administration’s agenda. While many might have bucketed this as ‘geopolitical risks’, we don’t think geopolitical risks typically carry true impact to the market. Think about situations likes the Cold War or even as recent as North Korean tensions. What was at stake didn’t carry direct economic implications. What has made these cross border discussions, and tensions, different is the direct impact these discussions and issues have on the global economy.
To this point, these are still just implications. There is no shortage of noise in the last few years, unsolicited nonetheless. But this is the first bit of market noise that has truly garnered consumer attention.
GFG Capital believes that the parties at risk here are some of the key beneficiaries and drivers of the global growth story that has been pushed across headlines so much. So not only do we think these potential victims of initial tariffs posed by the U.S. do everything they can to avoid a repeat of 1930, but they have the leverage necessary to give the U.S. pause.
Most notably targeted has been China. What’s come from Beijing in response to this point has been a calculated, measured response in our eyes. President Xi has the firepower necessary to inflict as much pain necessary to the United States. Although this is not believed to be the MO. China’s initial tariff was much more surgical in nature than expected. Targeting such specific industries that carry direct implications to Trump’s domestic voter base is nothing short of savage. China’s move to create their own TPP deal was a big power move that will carry long term benefits for them as well. So, we’re not surprised to see the U.S. and China trying to hash it out, but we’re certainly relieved. We think China is all in on the long game, and anything that jeopardizes that is not in their interest.
Understanding the web of the trade debate is not an easy task either. The global supply chain is a deeply tangled web in which not all companies report geographical inputs and revenues. Of the 48% of companies in the S&P that do reveal this information, 43% of sales were generated abroad in 20162. The companies that do reveal more granular data indicated that Asia (not just China) accounted for 8.5% of foreign sales with Europe tallying 8.1%3. Energy, tech and materials are the three most globally exposed sectors within the index. If one thinks they are going to untangle this mess to find the few clear winners, good luck.
The trade war hype is the first time GFG is foreseeing a chance for a paper risk to materialize into something real. But they are not running for cover just yet.
This is why some of the tech selloff is being overdone. If it were not for this global tariff scare in the backdrop, then sector rotation would be stepping in a bit quicker. This volatility is what investors should be expecting, but healthy bull markets are carried along by sector rotation. Without it, markets stagnate and health comes into question.
Column by GFG Capital, written by Eduardo Gruener.
Pixabay CC0 Public DomainCourtesy photo. Direct Lending: A New Alternative For Private Investors
Traditional asset classes have delivered robust returns over the last few years with exceptionally low volatilities. The outlook is less bright, however. The recent market turmoil is an indication that the high return/low volatility regime has most likely come to an end. This does not mean that the equity bull market has ended. The fundamental picture remains robust with strong earnings momentum and relatively low recession risks in major economies. Equities may well move higher in the next 2 years, but it is going to be a bumpy ride. Fixed income investors might even feel worse off. Rising yields from very low levels are putting downward pressure on prices of longer duration bonds. Credit spreads are very tight and should start to widen in the final stage of the economic expansion, driven by higher rates, rising default rates and increasing leverage.
The lack of value in fixed income assets and the rising volatility in equities has created renewed interest in alternative investments, which have become a key component of well-diversified investment portfolios. Initially, the asset class was mostly the realm of sophisticated investors, but it has developed into products now available to much smaller portfolios.
Nevertheless, private banking clients remain underexposed to alternatives. Despite the rising transparency and regulations, hedge funds continue to suffer from image problems due to some bad practices in the past. Private equity funds offer the most attractive risk/reward profile, but the lack of liquidity can be an obstacle for private investors that have uncertainties surrounding the adequate time horizon and risk profile. This is the main differentiator between private investors and big institutional investors such as endowments and sovereign wealth funds, which have a very consistent investment strategy based on long-term objectives. The most prominent example is the asset allocation of the Yale Endowment with 50% in illiquid assets and around 80% in alternatives overall, including liquid alternatives. Pension funds have also increased their exposure to alternatives from 5% in 1995 to around 25% now.
However, there are new segments in the alternatives space that could help to overcome the (sentimental) hurdles that discourage private investors from investing. For example, investors have recently begun to expand into providing debt to businesses, an area traditionally dominated by banks. The disintermediation process is part of a broader global trend known as shadow banking or shadow lending, whereby non-bank actors seek to provide credit to companies. The growth of private debt funds has been dramatic with very attractive risk-adjusted returns for investors. The trend is driven by three factors: Firstly, the post-crisis financial regulatory reforms have led banks to reduce their lending activities, particularly to small and medium-sized businesses. Secondly, the demand for credit from businesses has not fallen to the same degree, leading to unmet demand. And thirdly, the demand from institutional investors for debt that yields more than government debt remains robust. Historically, the private debt market consisted of specialized funds that provided mezzanine debt, which sits between equity and secured/senior debt in the capital structure, or distressed debt, which is owed by companies near bankruptcy. Following the financial crisis, a third type of fund emerged. Known as direct lending funds, these funds extend credit directly to businesses or acquire debt issued by banks with the express purpose of selling it to investors.
Leading alternative investors have all expanded their product offerings to include private debt funds. They are joined by many specialized new firms. The strong demand by institutional investors has enabled these funds to expand rapidly in size. Collectively, more than 500 private equity style debt funds have been raised since 2009. The private debt industry has grown its assets three-fold in the last ten years, hitting a record last year of $638 billion despite increased distributions to investors, with 25% of that coming from direct lending funds.
Direct lending funds are highly suitable for private investors. There is a wide range of strategies such as real estate bridge loans, equipment leasing, trade finance, consumer loans, just to name a few. The generally offer high single digit returns with strong collaterals, low volatility and very low correlation to traditional asset classes. There are specialized funds that offer monthly or quarterly liquidity. However, these are also more complex and sophisticated, so an adequate analysis and good advice are presented as essential to make the right decisions and not take unnecessary risks.
Join us on May 1st at BlackRock’s Factors virtual conference to learn more about the new lens for investing. Register here!
Movies moved from black and white to color, showing the richness of the world in its true form. Shouldn’t the way we build portfolios and evaluate managers also evolve?
Casablanca. It’s a Wonderful Life. Citizen Kane. Rebecca. Roman Holiday.
I understand that these classics are beloved by many. But I have a different take. They’re in black and white and I prefer color. The world is in color, and I like my movies to reflect the full spectrum of color I see outside the movie theater.
Investments, like movies, also evolve with data and technology. Just as color and other technological developments revolutionized the movie experience, I believe the lens offered by the Factor Box can dramatically change how we construct and manage a portfolio of investments by offering a more complete picture of the underlying factors that affect a portfolio’s investment performance.
Lights! Setting the scene
In 1992, Morningstar introduced the style box, a simple and intuitive method for constructing a portfolio. The equity style box was a 3×3 grid dividing funds into nine boxes, using value and size factors — broad persistent drivers of returns—in today’s language of investing. The ease of choosing funds across styles in various boxes helped millions of investors to construct diversified equity portfolios, and provided an objective way to compare managers to their peers with similar investment styles.
While the style box has served investors well for almost 30 years, our knowledge about investments has significantly increased. We know that more factors than just size and value have been historically associated with long-run excess returns. A large body of academic work has shown that quality, momentum and minimum volatility also have empirically enhanced returns or reduced risk relative to market-capitalization index benchmarks.
The way we view investments should reflect the advances made in data and technology. With a new lens, we can make more informed investment decisions and more efficiently benchmark active managers.
Ready for a close-up: Introducing the Factor Box
The Factor Box transforms the style box concept, incorporating a more complete view of the dominant drivers of returns within equity markets. The Factor Box pushes from two factors to a full color array of factors. In my last article, I discussed how value, quality, momentum, size and low volatility have historically beat the market on a risk-adjusted basis and have strong economic intuition. The Factor Box also adds yield — a measurement of high and persistent dividend yields — because income considerations are important for many investors, especially for those in retirement.
The Factor Box displays the relative factor exposure of a stock or a group of stocks versus a comparative universe, such as the broad market. Factor exposures may change over time. For illustrative purposes only. The Factor Box should not be interpreted as a recommendation of any security or investment strategy.
Action! Using the Factor Box
We can use the Factor Box in a similar way to the style box, but with more depth and richness. We can:
Assess portfolio diversification. Do we have all, not just two, factors? If a portfolio lacks exposure to quality, for example, and has too much momentum, we can take appropriate action.
Evaluate fund exposures. Perhaps the factor exposures in a traditional actively managed fund can be obtained in a more efficient way with lower-cost, fully transparent, smart beta ETFs. The Factor Box can help find the most appropriate smart beta factor exposure.
Conduct due diligence. The Factor Box can analyze factor exposures for each security. This provides a transparent view of a fund’s actual exposures based on underlying holdings, not just the exposures the managers claim to be targeting. This can help when choosing between funds to fill an allocation.
Tilt dynamically. The snapshot provided by the Factor Box could help investors position factor exposures through the business cycle. Tactical investors who believe the economy is signaling for value to outperform, for example, could use the exposure insights of the Factor Box to reallocate within their existing holdings to implement a short-term tilt.
And … Cut!
We believe factors have the potential to revolutionize the investment landscape. Join us on May 1st at BlackRock’s Factors virtual conference to learn more about the new lens for investing. Register here!
Column by BlackRock, written by Andrew Ang
Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
In Latin America and Iberia: this material is for educational purposes only and does not constitute investment advice nor an offer or solicitation to sell or a solicitation of an offer to buy any shares of any Fund (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. If any funds are mentioned or inferred to in this material, it is possible that some or all of the funds have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico, Panama, Peru, Portugal, Spain, Uruguay or any other securities regulator in any Latin American country and thus might not be publicly offered within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics (“factors”). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.
The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.
The examples presented do not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular.
This document contains general information only and does not take into account an individual’s financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
Pixabay CC0 Public DomainFoto cedida. El #10YChallenge de los activos bajo administración de las Afores
Miguel Barbosa, Alfonso Barros, Juan Calderón , Ricardo Mendez, and Carlos Rodriguez-Aspirichaga have joined UBS Wealth Management’s international unit in a push to strengthen the firm’s business in Mexico.
The experienced ultra-high-net worth advisors used to work at JP Morgan Private Bank, and will be based out of UBS’ New York, Miami and Houston offices.
Sources familiar with the matter told Funds Society that this is a very good example of UBS’ appeal to UHNW advisors. “We recently aligned our wealth management business to be unified under a global wealth management umbrella… and one aspect of that too is to establish a much more aligned and direct focus on Latin America under the leadership of Sylvia Coutinho in Brazil.” Adding that the team of new hires “is a very talented team with an impressive client roster in Mexico. They represent some of the most sophisticated and wealthy investors in Mexico and that’s a very good fit for UBS. I think they will find this a very good move for them and their clients.”
UBS private banking and wealth advisors serve clients in 65 markets and work with approximately half of all billionaires in the world.
María Dolores Benavente, and Bjorn Forfagn. UniónCapital AFAP Becomes First Pension Fund in South America to Comply with the CFA Code
CFA Institute, the global association of investment professionals that sets the standard for professional excellence, has added UnionCapital AFAP to the growing list of asset owners that claim compliance with its Asset Manager Code (AMC). UnionCapital AFAP, a pension fund in Uruguay with $2.7 billion in assets under management – equating to 5% of the GDP of Uruguay – is now one of the more than 1,400 companies around the world that claim compliance with the code.
The AMC clearly outlines the ethical and professional responsibilities of pension funds or firms that manage assets on behalf of their clients. For investors, the code provides a benchmark for the behavior that should be expected from asset managers and offers a higher level of confidence in the firms that adopt the code.
UnionCapital is the first firm in Uruguay to comply with the code and shows leadership commitment to strengthening the capital markets and investment industry in the country by upholding investor-centric values and behaviors. It is also the first pension fund in South America and the second one in Latin America to comply with the code.
“Our investors expect and deserve the best governance and management practices when it comes to their retirement savings,” said Ignacio Azpiroz, CFA, CIO of UnionCapital AFAP. “UnionCapital is recognized in the industry for our high standards, ethics and professionalism, and we’re proud to reinforce this through our adoption of the Asset Manager Code.”
The Asset Manager Code is grounded in the ethical principles of CFA Institute and the CFA® Program, and requires that managers commit to the following professional standards:
To act in a professional and ethical manner at all times
To act for the benefit of clients
To act with independence and objectivity
To act with skill, competence, and diligence
To communicate with clients in a timely and accurate manner
To uphold the rules governing capital markets
“Building trust in the investment profession is at the core of the CFA Institute mission, as well as strengthening and ensuring the future vitality of the global financial system,” said Bjorn Forfang, deputy CEO at CFA Institute. “Compliance with the Asset Manager Code demonstrates dedication to raising standards in the financial system in Latin America, and we commend Union Capital, and all firms that have adopted the code, for displaying a resolute and tangible commitment to professional ethics and helping to build a better world for investors.”
UnionCapital serves 293,000 clients across Uruguay, and joins more than 1,400 other firms around the world claiming compliance with the Code. The pension fund also complies with the CFA Institute Pension Trustee Code of Conduct.
Pixabay CC0 Public DomainJohn Mensack, courtesy photo. Schroders' John Mensack Will Discuss EM Debt Today at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
Today, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as Schroders’ John Mensack.
Emerging Market Debt
John Mensack is a Senior Investment Director – Emerging Markets for the Schroder Emerging Market Debt Relative (NY) and the Emerging Market Equity teams. On today’s event, he will discuss about opportunities in emerging Market Debt. “We believe that value exists across the emerging market debt (“EMD”) opportunity set in every market cycle and episode of structural change and can be identified through fundamental research and time-tested investment tools. It makes no sense to structurally overweight any one sub-segment of this asset class. We advocate an integrated, dynamic asset allocation approach utilizing the entire EMD opportunity set as the best way to balance risk and return and optimize exposure to this asset class.” He mentions.
Mensack is embedded within both EM teams, and serves as a client portfolio manager. He joined Schroders in 2011. Prior to joining Schroders, John was Head of Institutional Distribution at Peachtree Asset Management, an insurance-linked asset management firm. From 2004 to 2009, he was a Managing Director of Hamilton Lane Advisors, where, among other duties, he was CEO of the hedge fund of funds unit. He also was Head of Institutional Sales for Hawthorne, the nation’s largest independent multi-family office, from 2001 to 2004. Mensack was also Senior Vice President of the Nationwide/Gartmore group of companies from 1999 to 2002. From 1987 to 1999, John worked in a series of senior roles for SEI Investments, rising to Head of Non-US Marketing for the Investment Management division. His research report The Case for Long/Short Equity as a Tool in Traditional Asset Class Construction was published in The Journal of Wealth Management in Spring 2003. Mensacks holds an MBA in Finance from the Wharton School at the University of Pennsylvania, and a BA in Finance/Economics (dual major) from Temple University.
For more information on the strategy contact Gonzalo Binello or Maria Elena Isaza. For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
Pixabay CC0 Public DomainPhoto: Gary C. Hampton, de MFS. MFS Investment Management's Gary C. Hampton will Discuss Multi-Asset Investing at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as MFS Investment Management’s Gary C. Hampton.
Multi-Asset Investing
Gary C. Hampton, CFA, investment product specialist with MFS Investment Management will talk about how a to combine equity, bonds, and cash to meet client objectives. “Investors have frequently sold assets in markets about to rise and bought into markets about to fall, in effect allowing emotions to guide short-term decisions at the expense of longer-term investment performance. Combining stocks and bonds in a multi-asset portfolios offers investors diversification and the opportunity to achieve improved risk-adjusted performance.” He explains.
In his role at MFS, Hampton communicates investment policy, strategy and tactics, performs portfolio analysis and leads product development for several of the rm’s value and core equity strategies.
He joined MFS in 1996 and has held a number of roles during his tenure at the rm. He spent more than ten years in the rm’s retirement/DC plan division, working with plan sponsor clients on compliance and new business implementation projects. He joined the MFS Global Product team as an investment product analyst in 2007 and was appointed to his current role in 2013.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
Pixabay CC0 Public DomainPhoto: Robert Schumacher, de AXA IM. AXA IM's Robert Schumacher Will Talk About Dynamic High Yield at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as AXA Investment Managers’ Robert Schumacher.
Dynamic High Yield
Robert Schumacher, Chief US Strategist and Client Portfolio Manager de Fixed Income at AXA Investment Managers, will discuss about dynamic high yield opportunities on the first day of the event.
“AXA IM’s U.S. Dynamic High Yield Bond fund offers a flexible exposure to the broad US high yield market and reflects the investment team’s top-down views through a tactical approach with a higher beta than our traditional core high yield strategy.” He mentions.
In his opinion, the higher risk tolerance of the strategy results in more concentrated positions in his high conviction investments. The portfolio is mostly invested in high yield cash bonds issued by companies that they believe to have solid business fundamentals and improving credit characteristics. “We aim to invest in specific credits where we believe that our credit research process creates an informational advantage and where we believe securities are mispriced. Additional alpha is targeted through the leverage provided by an overlay of single name credit default swaps (CDS) positions.”
Robert Schumacher is the Chief US Strategist and a Client Portfolio Manager for Fixed Income at AXA Investment Managers (AXA IM). He has over 30 years of industry experience in sales, trading, management and marketing across both retail and institutional asset management. His primary responsibility is to provide in-depth analysis of emerging financial and economic developments with specific orientation toward actionable investment themes within US dollar-denominated credit portfolios. Prior to joining AXA IM, he was with Van Kampen Investments, where he worked on developing investment trusts and later as the Chief Investment Strategist providing insight, perspective and solutions to the firm’s clients.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as RWC Partners’ Davide Basile.
Convertible Bonds
“Convertible Bonds offer conservative equity participation whilst providing capital preservation which we believe is ideally suited for this market environment. Characteristics such as; inherent low duration, ability to benefit from a rising volatility environment, conservative equity exposure, contained valuations and recovery of the primary market all make for a compelling investment case today. Convertible bonds tend to outperform many asset classes in times of rising rates and increased volatility, and our fund is aimed at providing long only convertible exposure preserving the asset class’ asymmetry of returns to maximise the asset class’ long-term benefits.” Says Davide, Head of the Team and lead portfolio manager for the RWC Convertible Bond strategies.
The RWC Global Convertibles Fund, since its inception, invests purely in physical convertible bonds and does not use synthetic instruments or other investments which may dilute away the core benefits of the asset class.
Davide joined RWC in January 2010 to lead the team and he brought with him a long history in convertible bonds having worked at Morgan Stanley since 2001. At Morgan Stanley Davide worked with in both the Private Wealth and Investment Management divisions, and most recently held the Head of Convertible Bonds position. Davide graduated from Imperial College London with a degree in Material Science Engineering.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
