Sharing our convictions

Head of Emerging Market Bonds Luc D’hooge gives you his latest view on EM hard-currency bonds and where he is finding opportunities.

From an active manager’s point of view, risk premiums are currently very high in emerging markets and make their corporate bonds an attractive asset class in the stubborn low-rate environment. Wouter van Overfelt, portfolio manager of our Emerging Markets Corporate Bond portfolio, is ready to take advantage of the broad and promising opportunity set, applying a tried and tested investment strategy.

COVID-19 has just rung in the next round of low yields prolonging the balancing act between risk and return for multi-asset investors. While traditional multi-asset strategies might struggle, their modern counterparts are highly adept at delivering on their promises of return generation and capital protection thanks to firm risk control, volatility targeting and unbiased decision-making.

Our lives have been turned upside down by the pandemic. While much has been written about the shift to digital and its impact, relatively little has been said about the wider long-term changes for investors post coronavirus. We see six challenges facing investors – and the inherent potential.

The recent market correction has seen investors rushing to sell stocks of cyclical Swiss companies. Can the value factor recover like it did after the crash in 2008?

Are your spirits lifted by the lifting of lockdown measures? Dusting off your desks at work may give you unexpected pleasure. However, our behavior as consumers has changed permanently. The economy has left the intensive care unit, but remains a patient.

The latest EM sovereign bond outlook and portfolio positioning from Head of Emerging Market Bonds Luc D’hooge

The latest EM corporate bond outlook and portfolio positioning from Head of Emerging Market Corporate Bonds Wouter van Overfelt.

The pandemic has brought the world to a standstill, but a vaccine would cure it. By contrast, there is no quick fix for climate change. However, governments and consumers may have learned a lasting lesson.

Could the “Great Going Green” be one of the pandemic-inspired tales our grandchildren will remember? We believe there could be a climate friendly revival as governments link stimulus measures to sustainable development, and companies drive innovation. Our experts take a closer look at the opportunities.

The pandemic has hit emerging markets hard, but Asian companies have proven their resilience. First-quarter earnings report show that the worst has passed. In terms of sectors, information technology held up well.

Recent weeks caused stress both for people who worried about their health and for investors who made too hasty decisions. In such unsettling times, investment solutions that switch off emotions by following a systematic approach can be a better option – like Vescore Active Beta. Its value-adding credo: complement human skills with machine strengths.