Published February 2019
ESG & Sustainability investing
ESG is a set of criteria/principles/factors, which is set to define responsible and sustainable investing. They originate from the UN PRI – United Nations’ Principles for Responsible Investments, launched in 2006, with more than 1800 signatories today. UN PRI consists of 6 principles, to follow to be a UN PRI Signatory. UN PRI aims to encourage long-term sustainable investments, and which measures to take to invest responsibly and sustainably. The ESG- factors are not something that is regulated or well defined, it is only a very loose set of words, which makes it very difficult to measure, evaluate or even define since different players in the financial industry interpret, implement and use these three factors in many ways. It is also the basis of an enormous amount of reporting instruments; stock exchange ESG practices, stewardship codes, memberships, corporate disclosure requirements and political initiatives, which all interpret what to focus on differently.
Published April 2018
Investing in CLO's
CLOs are an interesting asset class with an attractive risk-return profile. The loss-adjusted return of CLO “BB” is approx. 5-6 percent per annum compared with less than 3 percent per annum for “High Yield”-bonds, which further has materially higher duration. Still, CLOs are often compared with subprime CDOs which experienced heavy losses during the credit crisis. In our view, this is a misconception.
Published October 2017
Investing in Life Settlements
There are plenty of reasons to invest in life settlements. This alternative investment has developed due to a unique necessity and has caused a positive impact for both institutional investors and the insured individual.
The prolonged low interest rate environment is forcing investors to embark on paths away from traditional assets
Published August 2017
Investing in convertibles bonds
There is the potential for further rates volatility in 2017. CBs are well suited to this type of environment as they exhibit lower interest rate sensitivity than conventional bonds due to their embedded optionality. The asset class has historically performed well in periods of rate rises.Furthermore, a trend towards normalisation in rates plus the reversal of the pattern of money chasing central bank liquidity has led to signs of the start of a ‘great rotation’. As investors migrate away from fixed income and into equities, CBs represent an ideal intermediate stop. For fixed income investors looking for lower duration with equity upside they make a lot of sense and the defensive benefits of the product are also attractive for equity investors, who feel the risks facing markets are not fully priced in.
Published July 2017
Taking a smarter approach to investing
“Smart beta” continues to capture the attention of investors. In the latest annual smart beta survey conducted by FTSE Russell1, 60% of respondent asset owners in Europe said they had an allocation to smart beta, up from last year’s 52% and the 40% in 2015.