Investor appetite for emerging markets has been on the rise, boosted by hopes of a vaccine-led recovery from the coronavirus pandemic, and by Joe Biden’s victory in the US presidential election.
The Luxembourg Stock Exchange (LuxSE) has entered into an agreement with the German index engineering company Solactive AG to establish a new green bond impact index, the Solactive LGX Green Bond Impact Index.
Institutional investors allocated USD220.5 billion to fixed income strategies in the third quarter of 2020, with most of this going toward US bond managers, as rising coronavirus cases and the run-up to the US election kept appetites for risk low.
The assets managed by DWS Invest Euro High Yield Corporates have exceeded the EUR3 bullion mark.
High yield bonds are no longer rewarding duration and credit risk correctly, argues RWC Partners’ Justin Craib-Cox, and investors should consider using convertible bonds to earn equity-like returns as volatility continues to affect markets.
One third of asset managers in Europe are offering lower fees on selections of share classes in a push to make investment into newly launched funds more attractive, finds London-based research firm Fitz Partners.
Fund managers have welcomed plans by the UK government to issue a first sovereign green bond next year, which is expected to bolster green infrastructure projects and move the country closer to its goal of reaching net-zero emissions by 2050.
Border to Coast Pensions Partnership (Border to Coast), one of the largest UK pension pools, has launched its latest fixed income product with a GBP1.5 billion Sterling Index Linked Bond fund.
Doris Honold has joined the Board of Trustees of the Climate Bonds Initiative. Other trustees are: Paul Bodnar, Simon Cooper, Karl Mallon, Bryan Martell, Nicholas Silver and Professor Cynthia Williams.
Investors are buying back into safe-haven US government bonds, after expectations of a ‘blue wave’ Democratic victory in the ongoing vote-count for the US presidential election were dashed, causing yields to slide by 0.12 per cent in one day.