Investing in European Small and Mid-Cap
Starting from an overview on the asset class and its structural attractiveness, we analyse the need of having a rigorous and disciplined investment process (screening, fundamental analysis and portfolio constructions) in a very wide and somewhat inefficient universe, therefore focusing on our portfolio track record and its characteristics.
Investing in the Emerging Markets Local Currency Bonds world
Local-currency debt refers to bonds denominated in the currency of the bond's issuer. The emerging market universe consists of around 50 countries with an investable local-debt market. However, just a small number of bigger,commodity-dependent economies dominate the major benchmarks. As many investors blindly follow the benchmark, this creates inefficiencies that an active manager can exploit. These inefficiencies tend to be related to structural, constraint-driven and governance inefficiencies.
Sustainability is becoming an increasingly important factor in the economic growth of emerging market countries. There is a correlation between a country's adherence to sustainability (i.e. the strength of its institutions and governance) and the performance of its bonds. Countries with a sustainable rating have, on average, better credit ratings than non-sustainable countries. For example, since 2007, countries rated sustainable have been able to keep their credit ratings constant, while non-sustainable countries have had to accept significant downgrades.
By being benchmark agnostic and investing with high conviction, across business models, and in countries that are on a sustainable path, investors can enjoy long-term returns from emerging market local-currency bonds.
"A country that strives to improve sustainability, will eventually deliver more sustainable economic growth" - Thierry Larose, Senior Portfolio Manager, Zurich
Made for hard times: +2,5% in 2018 and what's next by Epsilon
Increased volatility in risky assets makes paramount to implement in your portfolio investment strategies providing protection to unexpected and large drawdowns. With a 10-year consistent track record, Eurizon Fund Absolute Attivo managed by Epsilon SGR (LU0335994041) is a low-volatility, decorrelated strategy which aims to generate positive absolute returns in bearish markets, while providing stability in a more bullish environment.
Harvesting the power of multi-factor investing in European Equities
Acadian believes market inefficiencies caused by behavioral errors can be exploited. Our dynamic multi-factor approach applies fundamental insights in a systematic manner in an effort to remove emotions and uncover attractive stock opportunities. With our state-of-the-art technology, Acadian is able to deliver cutting edge investment analysis to over 40,500 securities globally, including approximately 6,000 European equity securities. Portfolio Manager Mark Webster looks forward to explaining the intricacies of how this efficient implementation can provide a diversified, dynamic and risk aware portfolio. Furthermore, how the disciplined and dynamic nature of our process helped to reposition the portfolio through various factor rotations. Our sophisticated risk management framework has been an important component of managing uncompensated risks; thus reducing drawdowns and delivering stable risk-adjusted returns. Acadian's European Equity UCITS is a blend all cap fund, with a strong and consistent ten year track record of performance.
Global Equities with a long-term growth approach
While 2017 was characterised by record-low volatility, synchronized global growth and upward earnings revisions, 2018 saw the return of volatility due to different factors: significant divergences in economic growth across regions; the beginning of downward earnings revisions; rising market concerns on the US-China trade wars and an unwavering US Federal Reserve on its path to quantitative tightening. At Comgest, we believe that our "quality growth approach" is a key element to overcome this year's challenges. Our rigorous methodology is the result of a mix of a bottom up investment approach with the ESG criteria integration. Through those elements we build high conviction concentrated portfolios with the aim to deliver long term growth even in today's competitive and increasingly volatile markets.