Es la vuelta al cole y el período de las decisiones de inversión... ¿

A medida que nos acercamos a mitad del año, parece que se puede evitar la recesión en ambos lados del Atlántico, pero las previsiones de crecimiento siguen siendo débiles...

The impacts of the pandemic and the war in Ukraine have interrupted the positive performance trajectory of a diversified allocation, penalising both equity and bond markets. While markets are likely to remain highly dependent, in the short term, on changes in economic data (inflation and growth), we believe that investors can once again rely on attractive yields for a longer investment horizon with greater peace of mind.

More and stronger forces are accelerating the move to a Circular Economy. For example, geopolitical tensions remind us that raw material security is at stake. Most importantly, Circularity is nothing short of a requirement to meet, or even approach, carbon emission goals. Accelerando!

Allegro… ma non troppo. Geopolitical tensions and the potential energy supply shock raised questions about the energy transition path. Company investment in clean technologies could be delayed by higher costs and interest rates, but energy transition is still on the agenda. The current environment can be an opportunity to accelerate toward Net Zero, through investing in sustainable bonds – but selectivity is key!

Bond yields are back, but with a difference. In a fugue, the theme repeats itself. If rising rates are a theme markets have seen before, this time the rising tempo of that theme may completely change the sound. Listen carefully, selectivity will be everything.      

Last year India became the fifth largest economy in the world and the country’s GDP exceeded USD 3 trillion. In 2022 and 2023, India is the only major economy expected to deliver a robust real GDP growth of about 7%, accounting for about 22% of global growth. Is India at the cusp of delivering long term sustainable growth and how can investors participate?

Net Zero is a make-or-break moment for the global economy and investors can help emerging markets take full part in the energy transition.

The Russian aggression against Ukraine not only killed tens of thousands and destroyed many towns, power plants and damaged grain production and trade. An unintended consequence of Putin’s actions has been an acceleration Europe’s energy transition. What better way to illustrate our interview with Alix Chosson, Lead ESG Analyst, Environmental Research & Investments, but with a funeral march from Wagner’s Götterdämmerung to mark the slow death of fossil fuels.

In The Marriage of Figaro's Act III sextet, six voices reach harmony while singing their individual part. We find a parallel with the multi-manager’s mandate: aiming to select the best performers in each category, knowing each fund inside out including the conditions in which they may perform best, and building a unique portfolio seeking to deliver alpha in any given market regime.

Exotic, almost magical and full of promise at first glance, investing in sovereign debt is often full of hidden depths and unexpected risks, just like Tchaikovsky’s Swan Lake.

The late, great Stephen Sondheim was, perhaps, the greatest figure in 20th century musical theatre. He once said the ‘art is, in itself, an attempt to make order out of chaos’. The greatest operatic composers lived in dramatic times. Puccini composed during the Italian wars of reunification. 

2022 has been a challenging year for fixed income assets and the emerging market corporate space has been no exception. We are more constructive on the asset class going into 2023 and will seek to select the right notes to compose a portfolio well positioned for 2023.

Market turmoil can benefit certain types of absolute return strategies, just when the other instruments are out of tune. High volatility, rising rates, and increasing correlation among asset classes demonstrate why an orchestra employs a full range of instruments.

ESG data – its availability, relevance and comparability - is at the center of a wide industry debate which is even more lively for private markets. We discuss three ways to deal with this issue, and reemphasize the central role of due diligence in the ESG analysis process.

​What differentiates good music from excellent music? Maybe not the talent or the technique of each individual musician, but the soul that emanates from the ensemble. In our approach to impact investing, purpose and intention are primary. We invest with the aim to bring positive change in environmental and social areas. And we make sure our results are real.

In the past, small caps have tended to rebound strongly after inflation peaks. Small caps’ intrinsic qualities – agility, strong pricing power –, supplemented by careful selection by an experienced team, may allow them to stand out from the crowd once again in the near future, like a bright and powerful clarinet sound can take us almost by surprise.

In the United States Antonín Dvořák composed the New World Symphony in 1893 and Neil Armstrong took it on a cassette to the moon. Rudi Van den Eynde takes it global, presenting us a New World of long-term trends.

Schubert began his Eighth symphony in 1822. His Unfinished Symphony is also known as the first Romantic symphony, heralding a new musical type.

Hard landing or soft? From Draghi’s ‘’Whatever it takes” to Powell’s “Whatever it costs”, we know the markets are ready for exciting times. CTAs aim to face the next swing, whether it be hard landing or soft.

In Europe, the COVID-19 pandemic and the energy crisis have both weighed heavily on national Budgets. As the issue of energy transition becomes more pressing, can - and should - the European Central Bank (ECB) support governments?

As 2022 draws to a close, we ponder the lessons from this year of rate increases. While the Fed may have accomplished its mission, Eurozone inflation remains high and the ECB has limited room for manoeuvre. Its footwork must be precise in the face of major risks, in particular a misstep which could destabilise the financial system.

For or against? Partisan or not? A fad or real?? Caricature is fashionable and ESG is unfortunately no exception.

When investors thought at the end of 2021 that the shock of the Covid-19 pandemic could be left behind, few expected the outbreak of war in Europe just weeks later.