Newsletter: Fixed income: an opportunity behind the storm

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– Thursday 23 March 2023 –
Fixed income: an opportunity behind the storm 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: Fixed Income Active vs passive fund flows & performances: who is the winner in 2022 & so far in 2023? Bond Market Volatility hits 5 years’ time high: What impact on interest rates curve? Fixed Income active ETFs : the best of both worlds?

Marlene Hassine Konqui	Ahmed Khelifa, CFA
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? The summary of all that you have to know by clicking here.
	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. Click here to discover the full article.

	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. Click here to read more.


	LATEST NEWS 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? Click here to build effcient ESG portfolios.

	LATEST NEWS 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? Discover all the answers by clicking here.

	LATEST NEWS 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. Click here to discover the full methodology.

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This website and all of its contents (analysis and research) is published by, and remains the copyright of, BSD Finances or its licensors. The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell funds nor should it be viewed as a communication intended to persuade or incite you to buy or sell funds. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person’s sole basis for making an investment decision. Please contact your financial professional before making an investment decision. Should you undertake any such activity based on information contained on this website, you do so entirely at your own risk and BSD Finances shall have no liability whatsoever for any loss, damage, costs or expenses incurred or suffered by you as a result. Care is taken to ensure that the information provided by BSD Finances is correct but it neither warrants, represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. BSD Finances is a limited liability company registered in France with registered number 852 716 547 00017. Our registered office is at 8 rue de Moscou 75008 Paris. BSD Investing is part of BSD Finances.

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Marlene Hassine Konqui & ahmed.khelifa@lallocataire.com

Newsletter: Fixed income: an opportunity behind the storm

Fixed income: an opportunity behind the storm

Fixed Income Active vs passive fund flows & performances: who is the winner in 2022 & so far in 2023? Bond Market Volatility hits 5 years’ time high: What impact on interest rates curve? Fixed Income active ETFs : the best of both worlds?

Marlene Hassine Konqui

Ahmed Khelifa, CFA

Expert in portfolio construction Co-head of the SFAF ETF commission Associate Director General BSD Investing

Asset allocatorCo-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?

Bond Market Volatility hits 5 years’ time high: What impact on interest rates curve?

MARKET VOICE: Active fixed income ETFs in the spotlight, BY Franklin Templeton

LATEST NEWS

Portfolio Allocation: How to overcome ESG based asset allocation challenges?

LATEST NEWS

ESG Fund flows: Did the greening of investors’ portfolios continue in 2022?

LATEST NEWS

Thematic investing: A new fund selection methodology by BSD Investing & L’allocataire

Fixed Income Active vs passive fund flows & performances: who is the winner in 2022 & so far in 2023?
Bond Market Volatility hits 5 years’ time high: What impact on interest rates curve?
Fixed Income active ETFs : the best of both worlds?

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