Investment teams

We believe that the outcome of Brazil’s October election will likely be a contributing driver of Brazilian asset performance heading into year-end, shaping market expectations for fiscal policy, institutional stability, and the medium-term outlook for growth and inflation.

Tracking error has risen sharply since mid-2025, but that does not necessarily mean active portfolios have become riskier. As AI-related stocks increasingly dominate benchmark returns, diversified portfolios may have become less correlated with the index. Higher tracking error may therefore reflect benchmark concentration, not greater portfolio risk.

With two-year UST yields at around 4.7%, we think short end yields are offering an attractive potential hedge against both downside growth catalysts and lower oil prices.

Felipe Villarroel delivered the keynote address at TwentyFour Asset Management’s Annual Fixed Income Conference in London on 17 September 2026.

Since mid-2025, a sharp rise in market concentration and a decline in breadth have challenged quality managers. We are managing through this period with a continued focus on quality, diversification, and risk management. In our view, the recent struggles of quality investing do not reflect a broken investment style.

Liquidity is a key consideration in fixed income to determine whether assets can be bought or sold at speed, in sufficient size, with minimal price impact.

Hyperscaler bond issuance has surged in 2026, with volumes already far exceeding previous years. Alphabet, Amazon, Meta, Microsoft, Oracle and SpaceX have issued over $180bn of USD-denominated bonds so far this year.

We examine where we currently stand in the artificial intelligence (AI) cycle, how much further the AI boom may run, and why current market weakness could present long-term opportunities.

We believe emerging markets (EM) are reasserting themselves as a compelling source of long-term growth. This article explores the structural forces driving the resurgence, why quality investing has historically outperformed in EM, and why a forward-looking, active approach is essential for identifying tomorrow’s enduring compounders.