Discretionary

We already notice something special about 2021: the very narrow bullish consensus among market commentators for equities over bonds, credit over duration, high yield over investment grade, Value over Growth and international markets versus the US. We agree with this consensus.

We believe that it is prudent to remain cautious on emerging markets for five reasons: overall debt burdens; Chinese credit impulse; deteriorating conditions in developed markets; currencies; and positioning.

Both the drawdown and margin usage of the beta component of portable alpha strategies can be improved through the use of active risk management techniques.

Danilo Rippa and Gil Song discuss convertible bonds as an asset class; the case for convertible bonds in today’s investment environment; and investing long/short through convertible arbitrage.

Why ESG considerations can provide a valuable insight when determining the creditworthiness of an emerging-market sovereign.

FAANGM stocks are trading at extraordinary multiples, leading some investors to suggest they have hit bubble territory. What has happened historically when stocks reached these stretched valuations?

The growth of private credit has seen a range of new opportunities arise, from cash-flow direct lending to consumer credit to real estate.

Why it might not make sense to invest in well-run companies: a deep dive into the Quality factor asks whether growth at any price has changed investing forever.

We consider the history of 60/40 and how the strategy can be adapted to respond to a world where both of its performance drivers – bonds and equities – appear expensive relative to the past.

In the fifth episode of our CIO webinar series, Sandy Rattray and Andrew Swan discuss factors that will dictate returns in emerging-market Asian equities and the opportunities for alpha generation.