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At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products.
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Specialist in Asia Pacific, China, India and South East Asia and Global Emerging Market equities.
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Specialists in equity portfolios in Asia Pacific, emerging markets, global and sustainable investment strategies
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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.
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As COVID-19 wreaks havoc on lived and financial markets, we check in with our veteran High Yield Fixed Income team to learn which industries are being most affected, where there are opportunities and why High Yield may be considered 'cheap' right now.
Learn about investing in fixed income today. First Sentier Investors' on-the-ground teams share investment ideas uncovered in developed & emerging markets.
First State Investments’ High Yield Group recently passed the 3-year performance anniversary. Our current High Yield Strategies are long-only corporate credit, with no leverage and no derivatives.
Following the economic and market malaise in February and March, high yield and risk assets generally experienced five straight months of strong performance, only to pull back in September. With a coordinated push from central banks in the form of zero rates and $3 trillion in QE the markets rebounded sharply from their lows in March with the equity markets, as measured by the S&P 500, posting a second quarter return of +20.54%, followed by a +8.93% return in the third quarter. The renewed confidence in the US economy because of Fed stimulus and general improved understanding and combating of COVID-19 helped to propel risk assets higher. In September that sentiment reversed course. Growing concerns surrounding a second COVID-19 wave in the US combined with the upcoming flu season, questions about when another US stimulus deal is approved, and the uncertainty around the US election outcome all added to uncertainty that weighed on the markets as the third quarter closed.
Check the latest First Sentier Investors fund price and fund performance, keep track of funds performance and trends to help investment selections.
In July 2017, we published the “Investment Case for Asian Fixed Income” (click here) where we presented our thoughts on why Asia represented an opportunity for fixed income investors. In the paper, we assessed (among other things) the growth outlook for Asia relative to other parts of the world, the outlook for Asian demographics, the diversification within the universe of issuers and also compared volatility and returns against other fixed income markets. The results were highly favourable to allocating to Asian fixed income but in a post COVID-19 world, what case can be made for Asia USD investment grade credit?
The COVID-19 pandemic had a dramatic effect on the market in early 2020. Within days of US stocks hitting an all-time high in February, US equity indices began a one-month, 30-40% sell-off, US high grade corporate spreads tripled, and high yield spreads briefly pierced +1000 bp spread-to-worst (STW). In response, the Fed slashed rates to zero, and the Fed’s latest $3 trillion of Quantitative Easing (QE) resulted in an adrenalin shot increase in Fed Credit of $2.5 trillion. This rush of new money led US stocks to recoup most of their losses, or in the case of the Nasdaq 100, hit new highs. However, the global economy remains at a point of heightened/unchartered economic uncertainty. COVID-19 remains a significant unknown, social unrest and political uncertainty are high and the restart of the global economy a wholly new phenomenon.
The first quarter was extreme in the scale and magnitude of financial market volatility, particularly over the last six weeks of 1Q’20. A dramatic, global economic slowdown resulted from the unprecedented global quarantine of entire populations, in most developed countries, in response to the COVID-19 disease, which is widely deemed a deadly, viral pandemic.
Persistent trade-related uncertainty and unrest in Hong Kong clouded the outlook for Asian growth in 2019. Bond yields were under downward pressure for much of the year and, in turn, fixed income markets in the region performed well.
Global credit markets have been challenged in 2018 and spreads have widened. Asian issuers have not been immune from this volatility. Following another default by a Chinese issuer, we take stock of where markets are currently, what opportunities (if any) are present in the region, and outline how investors can gain exposure to the asset class if desired.
The U.S. High Yield market, as represented by the ICE BofAML US High Yield Constrained Index (HUC0) posted a +1.22% total return during Q3’19, on the heels of the particularly strong, +10.16% total return of 1H’19.
In this Q2 2019 Quarterly Update we review the increasingly dovish attitudes adopted by central banks and the “whatever it takes” commitment to monetary stimulus, the general high yield market, our portfolio positioning and the top contributors and detractors from our five High Yield Fixed Income Strategies.
The U.S. High Yield market, as represented by the ICE BofAML US High Yield Constrained Index (HUC0) posted a +2.6% Q4’19 total return (‘TR’), and a +14.4% total return for the full-year 2019. The strong 2019 represented the fourth best annual return since the post-GFC recovery in 2009; modestly trailing the +17.5%, +15.6% and +15.1% total returns of 2016, 2012 and 2010, respectively.
As it turns out, the first half of 2018 was challenging for many financial markets in general, and many fixed income markets in particular.
In general, global corporate bonds posted positive total returns during the third quarter of 2018.
In general, global corporate bonds posted positive total returns during the third quarter of 2018.
In general, global corporate bonds posted positive total returns during the third quarter of 2018.
It was an eventful quarter, though most factors were negative which lead to continuous spread widening for almost the entire period. Some of the notable events which kept the market jittery were, tighter monetary conditions in US and Europe, relentless emerging markets outflows amid the stronger USD and the credit crunch in China.
Curious? Come join us for a US election roundtable and hear our New York based Direct Infrastructure and High Yield Teams share their insights about the upcoming election and how it could impact healthcare, energy, global trade and more. Presenting from our Direct Infrastructure team is John Ma, Head and Director of Investments in North America of Unlisted Infrastructure and from our High Yield Team is Jason Epstein, the Co-Head of High Yield.
In order to fully understand why Kaisa defaulted on its bonds, we first need to get a good grasp on the deleveraging policy called the three red lines. Following years of debt-fueled growth in the property sector during which home prices surged six-fold over the past 15 years, the Chinese government decided to rein in excessive credit took on by property developers to avoid Japan’s mistake in the 1990s, which eventually led to long-term damage to growth.
The third quarter of the year was a highly eventful one during which the trade war between the US and China took a turn for the worse.
2018 was a challenging year for all Emerging Markets (EM) assets and EM hard-currency debt was no exception: losses from higher US Treasury yields and higher EM risk premia outweighed the running yield and resulted in negative returns for the asset class.
Global GDP growth continues at long term trend levels, mainly driven by developed countries where economic growth remains broad based across the household, private and Government sectors.
Emerging market (EM) debt (JPM EMBI global diversified in US$) recorded a 3.5% loss in the second quarter as the global environment became more challenging for EM countries.
Emerging market (EM) debt returned positively in the third quarter, with EM high yield (HY) continuing to outperform EM investment grade.
Risky assets (equities, commodities) across the board were weak in the fourth quarter and emerging market (EM) debt (JPM EMBI global diversified in US$) lost 1.25% in the quarter as the EM risk premium (spread) rose from 3.35% to 4.15%.
The quarter started with an upbeat tone amid synchronised global growth, however that dissipated very quickly.
The emerging market (EM) investment grade (IG) corporate bond market (USD) generated a 0.77% loss in the second quarter of 2018 based on the most widely tracked index, the JP Morgan CEMBI Broad Diversified IG index.
We recently travelled to Sub-Saharan Africa to undertake bottom-up research on a number of high yield sovereign credits, namely: Kenya, Zambia and Angola. Research trips, such as these, form a vital part of our investment process; particularly for countries where idiosyncrasies are the dominant driver of return and where information dissemination and/or transparency is poor.
Emerging market (EM) debt (JPM EMBI global diversified in US$) markets experienced a volatile third quarter but delivered a positive return of 2.3% over the period as the EM risk premium (spread) fell from 3.69% to 3.35%.
Consider listing property as part of real asset portfolios for long-term returns, liquidity, and inflationary hedge. This article explores these factors and emphasizes the investment potential of listed property as a complement to real asset portfolios.
With Initial Public Offerings in India consistently oversubscribed and valuations peaking, the team discuss their five largest holdings and why now is not the time to sell.
The outlook for the global economy and financial markets looks more uncertain today than it has for a long time. Both interest rates and inflation have risen sharply. There is a growing consensus that much of the world will shortly be experiencing slowing economic growth. Understandably, investors are asking what their options are. With a wide array of asset classes available, which are best placed to offer investors resilience in the current environment, but also sustainable investment opportunities?
Global city populations continue to grow, driven by urbanisation. The provision of housing for growing populations is a major challenge for many countries and cities. Adequate housing is a factor that influences a city’s mobility of labour, social wellbeing and commerce levels. Government housing policies are typically viewed holistically with policies covering social, private and rental housing. New supply is not always efficient and can be problematic particularly in densely populated cities.
All of us have been brutally confronted by a new reality in the last few months. It has certainly been crude, with financial markets swinging around on a riptide of greed and fear, as we the participants have vacillated between elation and despair. It is not surprising. Life and the world of markets are seldom so intimately entwined.
There have been times, over the last couple of years, when we have felt like a complete muggle. Darker forces (QE and the rise of the machines), have clearly been in the ascendancy.
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