Fixed Income Market Briefing

Tuesday 13th October - Live Online - 09:00-11:00 & 14:00-16:00

Agenda:


09:00-09:05

Welcome address by Investment Week


Virtual boardroom 1 Virtual boardroom 2 Virtual boardroom 3
09:05-09:40

Columbia Threadneedle
Fund: Threadneedle High Yield Bond Fund

Carmignac
Fund: FP Carmignac Unconstrained Global Bond

Barings

Fund: EMD Blended

09:45-10:20

Carmignac
Fund: FP Carmignac Unconstrained Global Bond

Barings

Fund: EMD Blended

Columbia Threadneedle
Fund: Threadneedle High Yield Bond Fund

10:25-11:00

Barings

Fund: EMD Blended

Columbia Threadneedle
Fund: Threadneedle High Yield Bond Fund

Carmignac
Fund: FP Carmignac Unconstrained Global Bond

11:05 - 11:40

Allianz Global Investors

Fund: Allianz Strategic Bond


14:00-14:05

Welcome address by Investment Week


Virtual boardroom 1 Virtual boardroom 2 Virtual boardroom 3
14:05-14:40

Algebris
Fund: Algebris Financial Credit Fund

Baillie Gifford
Fund: The Baillie Gifford Strategic Bond

RLAM

Fund: Sustainable Managed Income

14:45-15:20

Baillie Gifford
Fund: The Baillie Gifford Strategic Bond

RLAM

Fund: Sustainable Managed Income

Algebris
Fund: Algebris Financial Credit Fund

15:25-16:00

RLAM

Fund: Sustainable Managed Income

Algebris
Fund: Algebris Financial Credit Fund

Baillie Gifford
Fund: The Baillie Gifford Strategic Bond




Algebris Investments

Simon Peters, Investment Strategist

Fund: Algebris Financial Credit Fund 

Hunting for Income in a Yield Desert

In the current landscape, yield is scarce and bound to remain scarce. Global central banks easing has suppressed yield in high quality assets, which have traditionally represented the core of long-term investment portfolios. Currently, 20% of global Fixed Income assets yield negative, while less than 5% of the bond universe yields north of 5%. European financial bonds offer high value, as attractive yields co-exist with strong credit quality (most issuers are Investment-grade). As financials are not included in ECB QE and are off-index, they offer meaningful spreads (up to ~600bps for AT1s), even in a tight market.


Allianz Global Investors

Mike Riddell, Head of Macro Unconstrained

Fund: Allianz Strategic Bond

Allianz Strategic Bond Fund: A True Fixed Income Diversifier

Investors like the idea of flexible bond funds, but many of these products which invest in higher-yielding assets (corporate bonds, securitised products), are not providing diversification. Allianz Strategic Bond Fund targets a zero correlation to global equities, with a maximum +0.4 correlation over a 3-year investment horizon. The flexibility of not targeting an income allows us to optimise the total return of the portfolio, performing well through more volatile markets with the goal to serve as the anchor within a portfolio. We have been able to prove this over the 4-year history of the fund.


Baillie Gifford

Lesley Dunn, Investment Manager

Fund: The Baillie Gifford Strategic Bond 

Sustainable Income: A Flexible Long-Term Approach

The Baillie Gifford Strategic Bond Fund is a global best ideas fund actively managed through bond selection and strategic asset allocation. Following a through the cycle approach the fund strategically allocates between Investment Grade and High Yield bonds, plus varies exposure between Corporate versus Government bonds. A long-term fundamentals driven approach has been successfully followed since the fund’s inception in 1999.


Barings

Dr. Ricardo Adrogué, Head of Global Sovereign Debt and Currencies

Fund: EMD Blended

What is next for Emerging Markets Debt?

In March 2020, many developing and emerging markets countries hit a proverbial brick wall as a result of Covid19’s rapid spread and government lock-down policies to contain the virus. The immediate aftermath was a sharp decline in GDP across countries, commodity price crashes and rapid devaluation of EM currencies while developed market currencies remained relatively unchanged. To offset the severe economic shocks, Central Banks enacted record monetary stimulus programs resulting in lower government bond yields and a strong rally in risk assets. At Barings, we expect rates to stay lower for longer, expect quasi-sovereign bond spreads to converge with their respective sovereigns and expect currencies to gain back lost ground. If actual economic data remains weak, what happens to EM assets? Join us to learn more


Carmignac

Charles Zerah, Fund Manager

Fund: FP Carmignac Unconstrained Global Bond

The Strength of an Unconstrained Approach in Today's Turbulent Environment

Charles Zerah will explore the tools which allow his fund to generate performance in the most adverse markets. Carmignac P. Unconstrained Global Bond benefits from greater investment flexibility than traditional fixed income funds, defending against challenging scenarios and capitalizing on market shifts.

Columbia Threadneedle

David Backhouse, Portfolio Manager

Fund: Threadneedle High Yield Bond Fund

European High Yield: An Unconventional Cycle

At times of heightened volatility, and challenging economic conditions, the High Yield Market is the often the place where corporate credits go to default. However, following a knee-jerk reaction to the initial impact of the Covid-19 shutdown, and in spite of negative growth outlook, estimates for defaults have been lowered. Here we will consider the outlook for European High Yield and whether investors are being appropriately compensated for the inherent risks. In addition, we will address why the High Yield market is in a better position than in previous cycles to withstand the headwinds to come.

Royal London Asset Management

Shalin Shah – Senior Fund Manager

Fund: Sustainable Managed Income

Sustainable Credit: A Credibility vs Convenience Conundrum

As sustainable investing gains ever more traction, asset managers appear to be engaged in an arms race to demonstrate their ESG credentials to asset owners. Signs are emerging that credit investors may be favouring convenience over credibility, such as blindly buying bonds with green or social labels as a convenient but potentially sub-optimal solution. Shalin Shah, manager of RLAM’s range of Sustainable credit funds, will demonstrate how a more bespoke approach to sustainable credit investing can capture the significant number of inefficiencies present in Sterling credit markets whilst not compromising returns or sustainability. He will also talk about the unique nature of RLAM’s differentiated product offering and heritage in this space, which provides access to critical sectors that are largely unavailable to investors across other asset classes

Speakers:

Investment Strategist
Algebris Investments
Head of Macro Unconstrained
Allianz Global Investors
Investment Manager
Baillie Gifford
Head of Global Sovereign Debt and Currencies
Barings
Fund Manager
Carmignac
Portfolio manager
Columbia Threadneedle
Senior Fund Manager,
Royal London Asset Management