The year 2022 has been a difficult year for fixed income funds both in terms of flows and performances due to the central bank regime shift and interest rates hikes. US bond market volatility is hitting a 5-year high expressing investors uncertainty regarding future interest rates. What can this mean from an asset allocation perspective? Is there any predictive power of volatility on bonds expected returns? We explain below why investors are overwhelmingly shifting their portfolios to bonds despite the current volatility spike and how investors could benefit from the best of active management and the liquidity and transparency characteristics of ETFs, by answering the following questions:
Expert in portfolio construction Co-head of the SFAF ETF commission Associate Director General BSD Investing
Asset allocator Co-head of the SFAF ETF commission CEO L’allocataire
Fixed Income Active funds vs ETF flows & performances: who is the winner in 2022 and so far in 2023?
The year 2022 has been a difficult year for fixed income funds both in terms of flows and performances due to the central bank regime shift and interest rates hikes. Are fund performances improving at the start of 2023? Is there a trend reversal in flows since the end of 2022? Which of index or non-indexed funds are favoured by investors in this asset class?
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Bond Market Volatility hits 5 years’ time high: What impact on interest rates curve?
US bond market volatility is hitting a 5-year high expressing investors uncertainty regarding future interest rates. What can this mean from an asset allocation perspective? Is there any predictive power on bonds expected returns? We will answer these questions and explain why investors are heavily investing their portfolios in bond market despite the current bond volatility spike.
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MARKET VOICE: Active fixed income ETFs in the spotlight, BY Franklin Templeton
After one of the most challenging environments for fixed income since the 1970s, active managers benefited from their ability to move along the inverted yield curve and adapt the duration of their portfolios. These improvements are also happening within active fixed income ETFs. Jason Xavier Head of EMEA ETF Capital Markets, Franklin Templeton, explains how investors could benefit from the best of active management and ETF liquidity and transparency features.
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Portfolio Allocation: How to overcome ESG based asset allocation challenges?
ESG investing has now a place of choice in investors portfolios. Massive planned government investment plans are about to impact most developed countries economies’ as well as emerging ones. These investments are mostly linked to energy which could have an impact on future ESG investment performances. This arises new challenges in order to build efficient portfolios: Is there a fundamental economic and market rational for this keen interest to persist in the future? Can we talk about ESG as a risk factor with a related premium, based on past returns analysis? Finally, is there a solution to address the challenges of traditional benchmarking in ESG based Asset Allocation?
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ESG Fund flows: Did the greening of investors’ portfolios continue in 2022?
The development of sustainable index and non-index funds has been very rapid over the past three years, particularly in 2021. In the uncertain context of 2022, have investors continued to invest in sustainable funds? Did they favour sustainable index or non-index fund? Article 8, Article 9, where are the portfolios? Is the increase in the assets under management of sustainable funds accompanied by a change in fund benchmarks? What lessons can be learned for portfolio construction?
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Thematic investing: A new fund selection methodology by BSD Investing & L’allocataire
In this edition, with regard to the new developments of thematic investing, and based on BNPP AM, Invesco & WisdomTree market insights combined with our proprietary research, Marlene Hassine Knqui and Ahmed Khélifa, cfa provide a simple and easily achievable methodology that does not require a new nomenclature for efficient selection of thematic funds that does not require a new nomenclature, for efficient selection of thematic funds.
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