Bond markets are relatively expensive overall and for good reason as fundamentals are excellent and monetary policy is still accommodating. Caution is therefore the watchword even if there are still opportunities in European corporate debt. We should approach possible interest rate rises actively and flexibly if we...
2017 was a very good year for financial debt and fresh opportunities have appeared. The regulatory environment is still changing, maintaining favourable pressure on financial establishments, while the recovery in the macroeconomic cycle means interest rates will be rising gradually, improving the earnings outlook for...
Major central banks in developed counties will still be keen on maintaining today’s favourable economic environment which is good for companies. As a result, European companies will continue to generate sustainable cash flow, offering investors potential sources of revenue.
Emerging country growth still has upside, but we can expect it to be more volatile in 2018. Economies in emerging countries have strong disparities. China, for example, should see lower, but higher quality, growth while ASEAN countries offer opportunities even if they still have to overcome certain challenges.
In spite of today’s buoyant macroeconomic environment, 2018 could be a tricky year. Growth rates, monetary policy trajectories in the US and Europe and inflation levels could all trigger volatility. And demanding market valuations suggest investors should be watchful.
Tech stocks have contributed a lot to US equity market performance and they are now expensive, so we should be careful. But there are large disparities on the market with the performance gap between growth and discounted stocks running at historically high levels. As a result, there are still opportunities in certain...
Some European stocks are trading at stretched valuations, leaving little room for disappointments so investors should be wary. In a more volatile environment, high-quality stocks with strong balance sheets should prove more resilient. And companies with a large domestic presence should benefit from growth momentum in...
The fall in yields on risk-free investments has forced investors to revise asset allocation strategies and consider taking on more risk to maintain attractive financial returns.
European companies are the focal point of our investment strategy. We invest in companies which we believe have the recurrent levels of cash flow needed to guarantee regular income and help our investors benefit (in return for capital loss risk).
Big Data, a digital revolution which is transforming companies
Terms like artificial intelligence, connected objects, machine learning, automation and algorithms are headline news and all have big data as a common denominator. What economic reality lies behind the term? Is big data really a secular trend, does it actually help companies create value and, if so, which companies...
The economic environment and the outlook for earnings are both positive ; Today’s strong M&A deal flow is expected to last ; Our strategy owned positions in the two largest deals so far this year
The economic environment is favourable in Europe ; Midcaps are more domestically focused so are benefiting more directly from this growth environment ; Close proximity with senior executives in portfolio companies is essential
France is expected to embark on a serious reform package ; Growth is recovering in the eurozone ; Valuations are still attractive
The fund targets regular income but seeks to keep volatility under control ; The equity bucket focuses on companies with attractive dividend payouts ; The bond sleeve comprises corporate bonds and subordinated financial debt
European regulation means banks and insurance companies are better capitalised ; An increase in rates would be good for bank profitability ; Political risk is largely behind us ; Valuations still offer opportunities
Current bond yields require flexible and active investing ; Europe has some interesting opportunities ; An active duration management to limit the impact of yield moves
In spite of major political upsets, the economic and financial world appeared to go for more continuity in 2016. Investors had a choppy ride but never completely lost their nerve in spite of the numerous surprises they had to contend with.
In an environment still influenced by low interest rates, political uncertainty and lack of predictability for risky asset classes, investors are wondering how to manage their bond assets. What segments should be prioritised in the hunt for yield? Watch the video featuring Kevin Thozet, Product Specialist
After hitting a low point at the beginning of 2016, emerging market debt has since performed well and offers attractive opportunities even if some risks persist. Jean-Jacques Durand, Portfolio Manager of the EdR Fund Emerging Bonds strategy, discusses the outlook for emerging debt and provides details on his main...