repeatable investment process ppt

odyssey investment partners aum water

JavaScript seems to be disabled in your browser. For the best experience on our site, be sure to turn on Javascript in your browser. Microsoft PowerPoint Template and Background with taking a risk in the stock market. Presenting risk reward matrix ppt presentation. This is a risk reward matrix ppt presentation. This is four stage process. The stages in this process are risk reward matrix, investment reward, investment risk, high, med, low.

Repeatable investment process ppt netzwerk b1-2-b1 investments

Repeatable investment process ppt

In some cases, this has meant taking a closer look at senior secured bonds. Traditional investment grade bond strategies are meant to help their owners sleep at night. But hidden credit and interest rate risks make benchmark-hugging more hazardous than many realize. While the phase one U. Investment grade credit markets posted a banner year in ; can the good times continue to roll?

Sentiment continues to swing back and forth in the collateralized loan obligation CLO market, but bifurcation remains the constant. With the financial crisis more than a decade behind us, the global financial system seems poised to begin re-leveraging.

This process, which would likely take years to play out, would provide a source of funding for EM currencies, and represent a significant tailwind. Many EM regions have been engulfed in uncertainty for weeks or months.

In both the U. Private equity is an asset class that has traditionally been available only to very large, sophisticated institutional investors. But this is changing rapidly—a trend we expect to accelerate in As investors in the market continue to chase yield, the risk premium—or the reward for taking that risk—appears to be diminishing.

Because the U. As Europe finds itself in a climate of lackluster growth and political volatility, with an equity market that has been on an unprecedented year bull run, investors are searching for pockets of value. A long-term allocation to small-cap equities is one potential solution. Taryn Leonard and Melissa Ricco, Co-Heads of the Structured Credit investment team, discuss where they're seeing opportunities and risks today—and why technical factors are creating inefficiencies, and hence opportunities, in the current environment.

ESG has risen to the forefront of many investment strategies over the last decade. At Barings, our EM Sovereign Debt team takes a country-by-country approach, assessing ESG factors in the context of sustainability and—ultimately—creditworthiness. Amid an ongoing search for yield, with several potential risks on the horizon, there may be benefits to exploring opportunities outside of traditional corporate and government bonds—such as parts of the ABS universe.

From the Middle East to China to Argentina, investors face no shortage of geopolitical risks and negative headlines. But is there still value to be found across emerging markets? Despite the expected seasonal summer slowdown, infrastructure debt financing deals remained steady overall in the third quarter of —with strong activity in the U. IG CLOs can offer investors the benefits of spread pick-up and lower mark-to-market volatility, largely due to underlying collateral performance and structural security.

But above all, manager selection is critical—even at the highest-rated tranches. IG fundamentals held up relatively well in Q3, despite dampened sentiment and growing macro uncertainty. Spreads were unchanged, but may move wider before year-end. Deal flow remained steady in Q3, keeping primary market spreads range-bound. Against a backdrop of low global interest rates, we have seen increasing investor interest in European CLOs.

EMD performance was muted in Q3, but valuations remain attractive and emerging economies are growing at a measured pace. We continue to favor hard currency assets, which are benefitting from lower rate expectations. Despite mounting uncertainty in the broader markets, high yield delivered broadly positive returns in Q3.

As we continue to move through the late stages of a prolonged cycle, credit selection will be critical. The performance of EM Sovereign Debt can—and does—vary widely from country to country. Can value still be found or created ten years into the European property market cycle?

And if so, which sectors, geographies and risk profiles look most compelling? The mid-market continues to attract private debt investors as the Fed cuts interest rates. Could this fuel the economy and rev up the deal market, or are we nearing the end of the credit cycle? Eric Lloyd recently weighed in with a panel of experts for PDI.

Charles Weeks, Head of Real Estate Equity for Europe and Asia Pacific, discusses the backdrop for European real estate markets, where the team is seeing the most value by sector and geography, and why they always take an active approach across strategies and investment styles.

Michael Freno, Head of Global Markets, shares his view on where value can still be found in fixed income, despite the uncertain current environment—and why investors may need to look beyond traditional indexes in high yield, investment grade and emerging markets debt. Emerging markets are in the headlines on a regular basis, but we rarely hear the whole story. With loan and bond yields currently comparable, we believe—in a somewhat contrarian view to the market—there is a good argument for investing in loans, particularly in the U.

From fund-life extensions to ESG and diversity efforts, limited partners LPs have no shortage of factors to consider when evaluating PE investments. EMD asset classes—particularly local currencies—came out of the gate strong in the second quarter, driven by central bank stimuli and favorable monetary policy expectations. Despite healthy corporate fundamentals and a dovish Fed, negative macro headlines pushed high grade spreads wider in the second quarter.

As spreads tightened and managers successfully syndicated AAA tranches, CLOs gained positive traction in the second quarter. On the heels of strong Q2 performance, global high yield bonds and loans continue to provide attractive risk-adjusted return opportunities for investors—particularly those with the flexibility to look beyond the traditional indexes. Despite slowed growth and trade concerns, she believes there are several reasons why investors should remain optimistic.

Watch Barings CEO, Tom Finke, and other senior leaders discuss their key takeaways from the firm's signature private assets event. Barings' Jonathan Bock caught up with industry veteran, William Spitz, on trends in today's private markets. Attendees of the Barings Private Markets Conference discuss the value of exchanging ideas and perspectives with their peers. Ian Fowler, Co-Head of the North American Private Finance Group, discusses the dynamics of each middle market segment—including upper-end style shift resulting from competitive pressures—and explains why the traditional middle is the sweet spot.

Despite the sharp turns in high yield markets over the past two quarters, companies ticked along without flinching—posting strong earnings over the course. High Yield Investments, explains why. While industry dynamics remain healthy and growth prospects exist, current enterprise software valuations look stretched. Omotunde Lawal, Head of EM Corporate Debt, reports back from a recent trip to Mexico, where the Barings team conducted on-the-ground research through meetings with a wide variety of corporate issuers, economists and ratings agencies.

Historically a laggard in the e-commerce world, Russia is showing signs of life. But challenges remain. High yield markets roared back in the first quarter. Can market fundamentals and technicals support continued strength? And how should investors factor in risks ranging from possible recession, to ratings downgrades, to liquidity concerns? Sovereign debt outperformed in Q1 as geopolitical headlines continued to garner attention and commodities rallied. Risks remain for the asset class but some notable headwinds have now become tailwinds.

A subset of Intangibles, pharmaceutical royalties present a particularly compelling investment opportunity. High yield bonds and loans posted a strong Q1 following the technically induced Q4 sell-off. With defaults still near historical lows, current spreads provide attractive risk-adjusted return potential. BBB-rated credits led the first quarter recovery despite early signs of deterioration among fundamentals.

With spreads significantly tighter this year, short duration credits may pose an attractive investment option. CLOs rebounded in the first quarter as credit concerns receded. Lower interest rates may drive continued interest in the asset class moving forward.

Amid increased competition and rich valuations, PE returns have continued to trend downward. Rate expectations have changed materially across emerging and developed markets in the first quarter of What does this mean for emerging markets debt? In the current environment, senior secured loans are gaining traction for their potential to offer a blend of attractive yield and protection against both credit and interest rate risk.

In this video, Barings Global Emerging Markets Equities team explains its investment approach by discussing an opportunity at one of its weekly meetings. For investors willing to surrender a nominal amount of yield in favor of greater protection given a default, global senior secured bonds can be an attractive option in a recessionary environment. After a rocky , the picture may be brightening for emerging markets debt. As we consider high yield in the context of this turbulent environment, there are five takeaways we think are worth considering in the months ahead.

At Barings, contrary to popular belief, we believe that identifying high-quality opportunities in emerging and diverse private equity managers can deliver attractive risk-adjusted returns to investors. In a recent interview, David Nagle, CFA, portfolio manager in the Investment Grade Fixed Income Group, discussed the investment grade credit market, including some of the issues garnering headlines recently and how the market has evolved through the years.

Private credit markets have seen an increase in investor demand over the last decade. But with competition fierce and the cycle maturing, what factors should investors consider moving forward? Michael Freno, Head of Global Markets, discusses the benefits of 'multi-asset' or 'opportunistic' credit portfolios and the newly-launched Barings Global Investment Grade Strategies.

How can investors tap into the diverse opportunities within EM debt? The global high yield markets face a number of risks. Should we expect more of the same, or are we nearing a turning point in the cycle? As long-term structural demand trends converge with short-term technological innovations, opportunities are emerging to invest private capital in real assets. Ricardo Adrogue, Head of Barings' Emerging Markets Debt Group, discusses risks and opportunities in today's dynamic landscape - and how investors can seek to navigate it.

The market for infrastructure investments has become increasingly competitive. In the realm of private equity, a robust risk management framework can deliver less volatile, higher-quality performance results over time. With competition high and signs of mispricing of some assets, Eric Lloyd of Barings stresses the importance of a global and diversified approach to portfolio construction.

Compelling structural and cyclical dynamics are creating attractive opportunities in real assets, particularly across the energy value chain and power generation sector. David Nagle discusses how the Active Short Duration strategy can help investors to solve some of the challenges fixed income investors face today. Looking to match the return of the broad bond market, with less risk? By recognizing a trend early, and actively managing a portfolio of assets, we helped Wireless Infrastructure Group grow into one of the U.

Mina Nazemi, Managing Director of Alternative Investments, weighs in on how investing through an ESG lens can provide a more complete view of risks and opportunities. At Barings, we leverage our deep teams, global presence and expertise across the four quadrants of real estate as we seek to help our clients turn opportunities into real solutions. Global central banks have stopped easing, with tightening likely to follow.

Is the time to invest in EM behind us, or can these markets thrive as monetary conditions tighten? Over the past decade, the growth and expansion of the global high yield markets have transformed the way investors view the asset class.

Financing and structuring cross-border deals can be challenging, particularly in light of the U. In today's interconnected world, finding the right financing partner is key. While market volatility has risen at the start of , Barings continues to see attractive investment opportunities in German equities.

In this viewpoint, we tell readers why and where we see the greatest investment potential. EM equities are enjoying a strong rebound following five years of underperformance versus developed markets. Barings' combination of quantitative and qualitative analysis and tools provide a comprehensive and rigorous framework for investing in emerging markets local debt.

In this Viewpoint, we give readers an inside look into our investment process. At Barings, our approach to investing in private equity and real assets is different. As institutional investors continue to turn toward private debt for potentially attractive risk adjusted returns in a low-yielding environment, they may benefit from taking a global approach to the asset class.

In this Viewpoint, we discuss the unique real asset and private equity investing strategy employed by Barings Alternative Investments. Head of European High Yield, Martin Horne weighs in on how this credit cycle has differed from those in the past and what that means for investors. You are now leaving Barings. We make no representations about the accuracy or completeness of the information contained in any external sites and assume no liability of the content or presentation of external sites.

The opinions and other information contained herein, whether express or implied are made in good faith in relation to the facts known at the time of preparation and are subject to change without notice. This material should not be construed as a recommendation, and Barings is not soliciting any action based upon such information. Additionally, the strategies and funds may not be available to all investor types in all jurisdictions.

In some jurisdictions this website may contain advertising. Patent and Trademark Office and in other countries around the world. All rights are reserved. We use cookies on our website to provide you with the best experience. By proceeding to our site you agree to our Cookies Notice and our site Terms and Conditions.

Welcome to Barings. We have organized the information on our website to be specific to the needs of the global investor community, and also to reflect the needs of investors across different regions of the world we serve. EN United Kingdom Institutional. Client Portal. Investment Strategies Our expertise across a wide range of strategies drives innovative solutions.

Fixed Income. Multi Asset. See our related Viewpoints. High Yield We seek to identify attractive relative-value opportunities across global high yield asset classes. Structured Credit As one of the longest-tenured investors in the market, Barings has developed unique capabilities in understanding and identifying opportunities in global structured credit markets. Private Credit Our global private credit team leverages four decades of experience and industry relationships to source private debt investments worldwide.

Emerging Markets Our team of seasoned investment professionals is well positioned to identify value across corporate and sovereign emerging markets. Investment Grade We combine deep resources and a disciplined investment approach seeking to produce a track record of outperformance for our clients across a variety of strategies. Equities We build high-conviction portfolios based on fundamental, bottom-up research. Emerging Market Equities Our emerging market strategies aim to deliver long-term capital growth by drawing on our extensive research platform.

Small Cap Equities Our team aims to deliver long-term capital growth by investing in small cap companies, targeting strong risk-adjusted returns through a disciplined approach to stock selection. Alternatives Barings seeks to find differentiated sources of return across private equity, real assets, asset-based investments and real estate.

Real Estate We offer a wide range of global opportunities across private debt and equity markets, with a focus on research-driven relative value and risk-adjusted returns. Multi Asset Targeted Return Aims for targeted returns over cash or inflation that are equivalent to long-term equity returns but with considerably less risk.

Related Viewpoints Outlook: The Uneven Recovery The recovery in many ways looks real and durable—but it also looks uneven and, in some cases, quite unpredictable. View The Case for European Real Estate Debt The supportive pricing fundamentals in the European real estate market, and low leverage relative to previous property cycles, suggest the asset class is well-positioned to withstand the impact of the pandemic.

View Structural Trends Supporting Asian Equities There are a number of supportive structural trends shaping the opportunity in Asian equities, many of which—perhaps counterintuitively—have been amplified by the pandemic and U. View Value-Add Beyond the Pandemic The shock provided by the global pandemic has roiled real estate markets around the world—which means that the quality and location of properties has never been more important.

View U. View IG Credit: Upgrading the Roster In a landscape rife with risk, there may be benefits to upgrading both credit quality and liquidity. View High Yield: Halfway There? View Emerging Markets Equity: Evolving and Transforming From leading technologies, shifting consumption patterns, evolving business models to ESG—there are a number of factors shaping the opportunity in EM equities.

View ESG in Equities: Better Outcomes Require Better Practices Not all approaches to ESG are created equal—why a focus on integration, forward-looking dynamics and active engagement is the key to unlocking long-term returns in equity investments. View The Evolving Opportunity in Distressed Debt As the pandemic recedes, some companies may have a harder time managing higher debt levels than others—and as weaker issuers undergo restructurings or other stressed situations, there may be opportunities for investors to deploy more capital into distressed debt strategies.

View Three Reasons for EM Short Duration Debt Emerging markets debt has shown much resilience despite facing its share of pandemic-induced difficulties. All portfolio companies have strong competitive positions and enjoy high barriers to entry that should sustain supernormal profits on existing assets for a long time.

Holdings can be grouped into three broad categories: capital light compounders, reinvestment moats, and legacy moats. Broadly speaking, the multiple of owner earnings I am willing to pay for a capital light compounder is higher than that for a reinvestment moat, which is higher than that for a legacy moat. By doing so they are placing themselves at various points on the PEG curve below. Investors are willing to pay higher multiples for businesses which can grow their earnings faster.

Whether or not such a bubble exists, this bottom up, first principles process helps to safeguard against being on the wrong side of that bubble bursting. I have visited many quality-focused investment conferences over the last few years; most of the investor discussion seems to be oriented around deep value and capital cycle investment themes and ideas. The discovery of mispriced great companies is a perennially tough challenge, and I am trying to find in a universe of tens of thousands.

For a diversified manager this challenge is immeasurably more difficult. The output of this is a range of IRRs that could be enjoyed at current prices. Ideally a conservative appraisal would lead to an IRR in the high teens. The goal of the portfolio management strategy is then to augment this return to equity owners by occasionally and sensibly responding to stock market volatility by averaging down or up in response to material market moves inconsistent with changes in fundamental business prospects.

This is one of the major advantages of public vs. Public equity volatility can lower risk of permanent capital loss by allowing us to lower our average purchase price and avoids the temptation of employing leverage to juice returns.

This approach to public market investing means that volatility is welcomed, and no efforts are made to smooth investment returns. Risks of permanent capital impairment are mitigated by avoiding leverage at the portfolio and company levels, employing a long only strategy, and averting intrinsic value erosion by investing in high quality businesses.

Valuation may be a reason to sell an entire position, but unless extreme overvaluation occurs, it is more likely to drive portfolio rebalancing decisions. So, the key aspects of an investment process govern idea generation, investment research and portfolio management. Overarching these three pillars is a belief that execution is everything.

A sensible long term, business owner investment philosophy is of no use if the investing ecosystem is a barrier to faithfully executing a thoughtful investment process. A great investing ecosystem must cultivate a bi-literate brain; one capable of navigating data and filtering noise; and one capable of deep work in a digital era. It seems to me the obvious source of investment edge is behavioural. Prior to founding Tollymore Mark was a global equity investor for Seven Pillars Capital Management, a long-term global value investing firm based in London.

Mark joined Seven Pillars from RWC Partners, where he was part of a two-person team managing a newly launched, long term global equity fund. He is a qualified chartered accountant, and graduated from Edinburgh University with a First Class MA Honours degree in Economics, graduating first in his class. Featuring thought-provoking events for intelligent investors.

Featuring wisdom-packed content. Featuring intelligent investing thought leaders worldwide.

GIUDICATO DEDOTTO E DEDUCTIBLE INVESTMENT

Fixed income investors have been slower to adopt environmental, social and governance factors, but change is afoot. The coronavirus pandemic is creating short-term and long-term challenges for emerging markets EMs. But not all sovereign and corporate issuers can be painted with the same broad brush, and placing too much weight on overly dire forecasts may result in missed opportunities.

Co-Heads of Global Private Finance, Ian Fowler and Adam Wheeler describe the evolving conditions in the North American and European private credit markets and where opportunities may arise in the months and years ahead. Times of volatility can also yield opportunity if navigated carefully—and in the event of widespread defaults, senior secured bonds can offer some particularly compelling benefits.

In many ways, the current volatility is setting the stage for significant opportunities—but managing the downside is critical. As investors navigate global real estate markets in the months and years ahead, understanding the interplay between near-term cyclical weakness and long-term structural trends will be key.

COVID has proved challenging for businesses—but opportunities have emerged, particularly for companies with business models built to capitalize on long-term structural trends. Ghadir Cooper shares her views on equity markets today and what to expect going forward. COVID and lower oil prices have led to indiscriminate selling across EM corporate debt, creating a potentially compelling opportunity in the shorter-dated, higher-yielding segment of the market.

When it comes to finding clarity in an environment mired in uncertainty, an open dialogue between LPs and GPs is as critical as ever. The volatility driven by COVID and the fall in oil prices has created much uncertainty—but it has also provided a potential opportunity to make long-term investments at attractive prices.

Ghadir Cooper, discusses the impacts of COVID, the opportunity for companies capitalizing on structural growth trends from technology to demographics, and the integral role of ESG in fundamental analysis. A new buyer has arrived on the scene of U. Federal Reserve. As macro volatility continued to pummel markets throughout the first quarter, CLOs felt the effects—with dramatic price moves among tranches as investors clamored for liquidity. But we believe that those who invest with an active manager and take a long-term view will benefit.

As investment grade markets pivot sharply, with spreads reaching their widest level in over a decade, investors turn disproportionately toward quality and liquidity. Concerns surrounding COVID, lower oil prices and a global recession have weighed heavily on markets—including global high yield bonds and leveraged loans. While value opportunities are emerging, the landscape is punctuated with risks that must be carefully navigated.

The rapid spread of COVID, the precipitous fall in oil prices and the related shock to the global economy have sent markets—including EMD—into a tailspin in recent weeks. In this piece, we explore the resulting challenges and discuss opportunities beginning to emerge. Recent market and economic volatility may be the trigger that distressed debt investors have been waiting for, but capitalizing on opportunities will require a different playbook than those of past cycles. Despite the late-cycle environment, we believe the recent negative headlines on CLOs are somewhat overstated, and do little justice to the many benefits of the asset class—which has delivered impressive risk-adjusted returns and low defaults over time.

With a number of macro risks on the horizon, some investors have perhaps rightfully adopted a more cautious outlook when it comes to allocations to risk assets. In some cases, this has meant taking a closer look at senior secured bonds. Traditional investment grade bond strategies are meant to help their owners sleep at night.

But hidden credit and interest rate risks make benchmark-hugging more hazardous than many realize. While the phase one U. Investment grade credit markets posted a banner year in ; can the good times continue to roll? Sentiment continues to swing back and forth in the collateralized loan obligation CLO market, but bifurcation remains the constant.

With the financial crisis more than a decade behind us, the global financial system seems poised to begin re-leveraging. This process, which would likely take years to play out, would provide a source of funding for EM currencies, and represent a significant tailwind.

Many EM regions have been engulfed in uncertainty for weeks or months. In both the U. Private equity is an asset class that has traditionally been available only to very large, sophisticated institutional investors. But this is changing rapidly—a trend we expect to accelerate in As investors in the market continue to chase yield, the risk premium—or the reward for taking that risk—appears to be diminishing.

Because the U. As Europe finds itself in a climate of lackluster growth and political volatility, with an equity market that has been on an unprecedented year bull run, investors are searching for pockets of value. A long-term allocation to small-cap equities is one potential solution.

Taryn Leonard and Melissa Ricco, Co-Heads of the Structured Credit investment team, discuss where they're seeing opportunities and risks today—and why technical factors are creating inefficiencies, and hence opportunities, in the current environment.

ESG has risen to the forefront of many investment strategies over the last decade. At Barings, our EM Sovereign Debt team takes a country-by-country approach, assessing ESG factors in the context of sustainability and—ultimately—creditworthiness. Amid an ongoing search for yield, with several potential risks on the horizon, there may be benefits to exploring opportunities outside of traditional corporate and government bonds—such as parts of the ABS universe.

From the Middle East to China to Argentina, investors face no shortage of geopolitical risks and negative headlines. But is there still value to be found across emerging markets? Despite the expected seasonal summer slowdown, infrastructure debt financing deals remained steady overall in the third quarter of —with strong activity in the U.

IG CLOs can offer investors the benefits of spread pick-up and lower mark-to-market volatility, largely due to underlying collateral performance and structural security. But above all, manager selection is critical—even at the highest-rated tranches.

IG fundamentals held up relatively well in Q3, despite dampened sentiment and growing macro uncertainty. Spreads were unchanged, but may move wider before year-end. Deal flow remained steady in Q3, keeping primary market spreads range-bound. Against a backdrop of low global interest rates, we have seen increasing investor interest in European CLOs.

EMD performance was muted in Q3, but valuations remain attractive and emerging economies are growing at a measured pace. We continue to favor hard currency assets, which are benefitting from lower rate expectations. Despite mounting uncertainty in the broader markets, high yield delivered broadly positive returns in Q3. As we continue to move through the late stages of a prolonged cycle, credit selection will be critical. The performance of EM Sovereign Debt can—and does—vary widely from country to country.

Can value still be found or created ten years into the European property market cycle? And if so, which sectors, geographies and risk profiles look most compelling? The mid-market continues to attract private debt investors as the Fed cuts interest rates. Could this fuel the economy and rev up the deal market, or are we nearing the end of the credit cycle? Eric Lloyd recently weighed in with a panel of experts for PDI.

Charles Weeks, Head of Real Estate Equity for Europe and Asia Pacific, discusses the backdrop for European real estate markets, where the team is seeing the most value by sector and geography, and why they always take an active approach across strategies and investment styles. Michael Freno, Head of Global Markets, shares his view on where value can still be found in fixed income, despite the uncertain current environment—and why investors may need to look beyond traditional indexes in high yield, investment grade and emerging markets debt.

Emerging markets are in the headlines on a regular basis, but we rarely hear the whole story. With loan and bond yields currently comparable, we believe—in a somewhat contrarian view to the market—there is a good argument for investing in loans, particularly in the U. From fund-life extensions to ESG and diversity efforts, limited partners LPs have no shortage of factors to consider when evaluating PE investments. EMD asset classes—particularly local currencies—came out of the gate strong in the second quarter, driven by central bank stimuli and favorable monetary policy expectations.

Despite healthy corporate fundamentals and a dovish Fed, negative macro headlines pushed high grade spreads wider in the second quarter. As spreads tightened and managers successfully syndicated AAA tranches, CLOs gained positive traction in the second quarter. On the heels of strong Q2 performance, global high yield bonds and loans continue to provide attractive risk-adjusted return opportunities for investors—particularly those with the flexibility to look beyond the traditional indexes.

Despite slowed growth and trade concerns, she believes there are several reasons why investors should remain optimistic. Watch Barings CEO, Tom Finke, and other senior leaders discuss their key takeaways from the firm's signature private assets event.

Barings' Jonathan Bock caught up with industry veteran, William Spitz, on trends in today's private markets. Attendees of the Barings Private Markets Conference discuss the value of exchanging ideas and perspectives with their peers. Ian Fowler, Co-Head of the North American Private Finance Group, discusses the dynamics of each middle market segment—including upper-end style shift resulting from competitive pressures—and explains why the traditional middle is the sweet spot.

Despite the sharp turns in high yield markets over the past two quarters, companies ticked along without flinching—posting strong earnings over the course. High Yield Investments, explains why. While industry dynamics remain healthy and growth prospects exist, current enterprise software valuations look stretched.

Omotunde Lawal, Head of EM Corporate Debt, reports back from a recent trip to Mexico, where the Barings team conducted on-the-ground research through meetings with a wide variety of corporate issuers, economists and ratings agencies. Historically a laggard in the e-commerce world, Russia is showing signs of life. But challenges remain. High yield markets roared back in the first quarter.

Can market fundamentals and technicals support continued strength? And how should investors factor in risks ranging from possible recession, to ratings downgrades, to liquidity concerns? Sovereign debt outperformed in Q1 as geopolitical headlines continued to garner attention and commodities rallied. Risks remain for the asset class but some notable headwinds have now become tailwinds.

A subset of Intangibles, pharmaceutical royalties present a particularly compelling investment opportunity. High yield bonds and loans posted a strong Q1 following the technically induced Q4 sell-off. With defaults still near historical lows, current spreads provide attractive risk-adjusted return potential. BBB-rated credits led the first quarter recovery despite early signs of deterioration among fundamentals.

With spreads significantly tighter this year, short duration credits may pose an attractive investment option. CLOs rebounded in the first quarter as credit concerns receded. Lower interest rates may drive continued interest in the asset class moving forward. Amid increased competition and rich valuations, PE returns have continued to trend downward. Rate expectations have changed materially across emerging and developed markets in the first quarter of What does this mean for emerging markets debt?

In the current environment, senior secured loans are gaining traction for their potential to offer a blend of attractive yield and protection against both credit and interest rate risk. In this video, Barings Global Emerging Markets Equities team explains its investment approach by discussing an opportunity at one of its weekly meetings. For investors willing to surrender a nominal amount of yield in favor of greater protection given a default, global senior secured bonds can be an attractive option in a recessionary environment.

After a rocky , the picture may be brightening for emerging markets debt. As we consider high yield in the context of this turbulent environment, there are five takeaways we think are worth considering in the months ahead. At Barings, contrary to popular belief, we believe that identifying high-quality opportunities in emerging and diverse private equity managers can deliver attractive risk-adjusted returns to investors.

In a recent interview, David Nagle, CFA, portfolio manager in the Investment Grade Fixed Income Group, discussed the investment grade credit market, including some of the issues garnering headlines recently and how the market has evolved through the years. Private credit markets have seen an increase in investor demand over the last decade. But with competition fierce and the cycle maturing, what factors should investors consider moving forward? Michael Freno, Head of Global Markets, discusses the benefits of 'multi-asset' or 'opportunistic' credit portfolios and the newly-launched Barings Global Investment Grade Strategies.

How can investors tap into the diverse opportunities within EM debt? The global high yield markets face a number of risks. Should we expect more of the same, or are we nearing a turning point in the cycle? As long-term structural demand trends converge with short-term technological innovations, opportunities are emerging to invest private capital in real assets. Ricardo Adrogue, Head of Barings' Emerging Markets Debt Group, discusses risks and opportunities in today's dynamic landscape - and how investors can seek to navigate it.

The market for infrastructure investments has become increasingly competitive. In the realm of private equity, a robust risk management framework can deliver less volatile, higher-quality performance results over time. With competition high and signs of mispricing of some assets, Eric Lloyd of Barings stresses the importance of a global and diversified approach to portfolio construction.

Compelling structural and cyclical dynamics are creating attractive opportunities in real assets, particularly across the energy value chain and power generation sector. David Nagle discusses how the Active Short Duration strategy can help investors to solve some of the challenges fixed income investors face today. Looking to match the return of the broad bond market, with less risk? By recognizing a trend early, and actively managing a portfolio of assets, we helped Wireless Infrastructure Group grow into one of the U.

Mina Nazemi, Managing Director of Alternative Investments, weighs in on how investing through an ESG lens can provide a more complete view of risks and opportunities. At Barings, we leverage our deep teams, global presence and expertise across the four quadrants of real estate as we seek to help our clients turn opportunities into real solutions.

Global central banks have stopped easing, with tightening likely to follow. Is the time to invest in EM behind us, or can these markets thrive as monetary conditions tighten? Over the past decade, the growth and expansion of the global high yield markets have transformed the way investors view the asset class.

Financing and structuring cross-border deals can be challenging, particularly in light of the U. In today's interconnected world, finding the right financing partner is key. While market volatility has risen at the start of , Barings continues to see attractive investment opportunities in German equities. In this viewpoint, we tell readers why and where we see the greatest investment potential.

EM equities are enjoying a strong rebound following five years of underperformance versus developed markets. Barings' combination of quantitative and qualitative analysis and tools provide a comprehensive and rigorous framework for investing in emerging markets local debt.

In this Viewpoint, we give readers an inside look into our investment process. At Barings, our approach to investing in private equity and real assets is different. As institutional investors continue to turn toward private debt for potentially attractive risk adjusted returns in a low-yielding environment, they may benefit from taking a global approach to the asset class.

In this Viewpoint, we discuss the unique real asset and private equity investing strategy employed by Barings Alternative Investments. Head of European High Yield, Martin Horne weighs in on how this credit cycle has differed from those in the past and what that means for investors. You are now leaving Barings. We make no representations about the accuracy or completeness of the information contained in any external sites and assume no liability of the content or presentation of external sites.

The opinions and other information contained herein, whether express or implied are made in good faith in relation to the facts known at the time of preparation and are subject to change without notice. This material should not be construed as a recommendation, and Barings is not soliciting any action based upon such information.

Additionally, the strategies and funds may not be available to all investor types in all jurisdictions. In some jurisdictions this website may contain advertising. Patent and Trademark Office and in other countries around the world. All rights are reserved.

We use cookies on our website to provide you with the best experience. By proceeding to our site you agree to our Cookies Notice and our site Terms and Conditions. Welcome to Barings. We have organized the information on our website to be specific to the needs of the global investor community, and also to reflect the needs of investors across different regions of the world we serve. EN United Kingdom Institutional.

Client Portal. Investment Strategies Our expertise across a wide range of strategies drives innovative solutions. An investment process is a set of guidelines that govern the behaviour of investors in a way which allows them to remain faithful to the tenets of their investment philosophy, that is the key principles which they hope to facilitate outperformance. An investment process should allow the manager to stay the course in periods of underperformance or other source of self-doubt.

It is the process which gives investment managers a better chance of making good decisions consistently though a market cycle. The investment process is a set of inputs that are designed to drive an output — satisfactory investment returns. Some friends of mine at large asset managers claim that my investment operating system is not a process. The main sources of contention seem to be that a real investment process is easily described, and that it is repeatable.

Institutional capital allocators also seem to broadly require that an investment process have this quality of repeatability for a strategy to be investable. Repeatability is indeed a desirable characteristic, but often repeatable is inappropriately conflated with quantitively led processes, characterised by the use of statistical screens highlighting cheap, out of favour stocks. Users of quant screens, sometimes in the form of proprietary idea generation engines, argue that simply by fishing in a certain pond, they are tipping the odds of achieving a satisfactory investment result in their favour.

Most investment ideas are driven by energetic engagement with company filings and transcripts, industry reports, fund manager letters and the authors of these letters in one on one and conference settings, and value investor publications.

It is a multi-touchpoint approach that fosters both independent thinking and intelligent, intellectually generous and appropriately aligned collaboration. Recognising an opportunity when one sees it is a more valuable skill than looking for opportunities in an information-rich world. For those ideas which look interesting, brief documentation of their potential investment merits helps to determine how time should be spent on more substantial due diligence efforts.

The research process is bottom-up, one company at a time. These characteristics include business simplicity, capital structure, track record, competitive positioning, reinvestment opportunities, stewardship and valuation. I am looking for competitively strong businesses which ideally have avenues for profitable redeployment of capital for a long time, whose uses and sources of finance are appropriate for the business model, and whose management is properly incentivised to make the best capital allocation decisions that will create the most long-term value for owners.

Each potential investment candidate is assessed at face value and using available facts. This is one step removed from saying that I am looking for capital light platform businesses with recurring revenues and high insider ownership, for example.

The capital light, recurring revenue nature of the business may well be desirable, but there are other ways to create high quality business models and sustain competitive strength. Likewise, high insider ownership may or may not satisfy the requirement that managers are aligned with owners. Each business is assessed on its merits, from a blank sheet of paper. The result is a portfolio that is concentrated with regards to the number of holdings but is diverse in terms of geographic and industry end markets, business models and organisational and ownership structures.

All portfolio companies have strong competitive positions and enjoy high barriers to entry that should sustain supernormal profits on existing assets for a long time. Holdings can be grouped into three broad categories: capital light compounders, reinvestment moats, and legacy moats. Broadly speaking, the multiple of owner earnings I am willing to pay for a capital light compounder is higher than that for a reinvestment moat, which is higher than that for a legacy moat.

By doing so they are placing themselves at various points on the PEG curve below. Investors are willing to pay higher multiples for businesses which can grow their earnings faster. Whether or not such a bubble exists, this bottom up, first principles process helps to safeguard against being on the wrong side of that bubble bursting.

Вот insta forex swap rates что

So, given a certain level of risk tolerance, robo-advisors set an asset allocation, rebalance over time to the asset class targets determined in the previous step, and harvest tax losses—all based on a set of pre-determined rules and inputs. They all have simple, highly-repeatable investment processes. And a repeatable process is exactly what you want from your investment manager.

This approach may sound perfectly reasonable at face value, but it begs the question as to why. The answer lies in the field of behavioral science where decades of research into probabilistic reasoning have exposed the extent to which people routinely base their forecasts and judgements on flawed rules of thumb as opposed to careful examination of evidence. Long before receiving the Nobel Prize in Economics, Daniel Kahneman was a psychology officer in the Israeli Defense Force, where some might argue he made his first big discovery.

In this role, he and his team were charged with the task of predicting those soldiers who would make the best officers in the Defense Force, as well as which recruits were best suited to the different branches of the military. After tracking the intuitive predictions of himself and his team, he found them to be worthless, so he tried something different.

He made his best attempt to create an algorithm; a structured process for forecasting a future outcome. The results of this approach? Despite the strong distaste from those doing the interviewing, the predicted likelihood of success in any branch of the military was increased. In fact, this approach has proven so successful that the Israeli military continues to use it today, with only minor adjustments 1. Additionally, these results, where algorithms rules-based decisions outperform raw human intuition and judgement, have been replicated many times over in a variety of fields.

Studies have shown that more structured approaches outperform in hiring employees 2 for your business, for example. By building and adhering to a repeatable investment process, an advisor, robo or human, will produce better results with higher consistency over the long term.

This does not mean that robo-advisors and rigid algorithms are a silver bullet solution to investment management problems. Analysis of the oil market by our Macroeconomic and Investment Research Group indicated that the price of oil was in a far more precarious position than the market was anticipating.

Using this forecast as an input into their credit models, the Sector teams identified the securities of those energy companies and other industries that would be vulnerable to a severe decline in the price of oil. The Portfolio Construction Group used this outlook in its risk models to determine how this oil forecast could affect clients at the portfolio level.

Informed by the work of the Sector teams and the Portfolio Construction Group, the Portfolio Management team was able to reduce the exposure to these companies and sectors, thereby minimizing losses during the selloff that followed. The specialization built in to our investment process positions us to evaluate assets and implement strategies that require deeper analysis, focused resources, and specialized expertise.

Our core competencies in credit, structured products, and due diligence lead us to parts of the fixed-income market that are not included in the popular benchmark, the Bloomberg Barclays Aggregate index Agg. Achieving yield targets while maintaining an investment-grade portfolio is possible, but it requires a willingness and ability to look beyond the benchmark. We believe our ability to uncover value in securities outside of the traditional benchmark-driven framework puts our clients in the best position to benefit from our pursuit of compelling risk-adjusted return opportunities.

At the heart of this investment proposition is the structure of our investment process, which allows our best ideas to be expressed in actively managed portfolios. The Funds may not be suitable for all investors. In general, bond prices rise when interest rates fall and vice versa. Certain of the derivative instruments are also subject to the risks of counterparty default and adverse tax treatment.

All Rights Reserved. To obtain a prospectus and summary prospectus if available , click here or call This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions.

Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. Investing involves risk, including the possible loss of principal.

Read a prospectus and summary prospectus if available carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus if available click here or call This is not an offer to sell nor a solicitation of an offer to buy the securities herein.

This material is authorized only when it is accompanied or preceded by a GCIF prospectus. Any representation to the contrary is a criminal offense. All rights reserved. By choosing an option below, the next time you return to the site, your home page will automatically be set to this site.

You can change your preference at any time. Nothing on the Website shall be considered a solicitation for the offering of any investment product or service to any person in any jurisdiction where such solicitation or offering may not lawfully be made. You understand that the information provided on this Website is not intended to provide, and should not be relied upon for, tax, legal, accounting or investment advice.

You also agree that the terms provided herein with respect to the access and use of the Website are supplemental to and shall not void or modify the Terms of Use in effect for the Website. Advisor Center. Toggle navigation. Our fixed-income investment process disaggregates the primary functions of investment management in order to make better decisions and express our best ideas in actively managed portfolios.

Our Process in Action The functions of investment management are divided among four independent teams. Sector Teams Security Analysis, Selection, and Monitoring The Sector teams are responsible for not only sourcing the most compelling risk-adjusted investments but analyzing them and providing ongoing risk monitoring.

Portfolio Construction Model Portfolios and Risk Analysis The Portfolio Construction Group provides strategy, research, and risk management analysis, and focuses on optimizing portfolio positioning for each client and fund by formulating model portfolios. The division of labor occasions, in every art, a proportionable increase of the productive powers of labor. Adam Smith, The Wealth of Nations.

Enhancing Productivity Through Division of Labor and Specialization In his seminal work The Wealth of Nations , Adam Smith observed that the division of labor in any enterprise increases productivity and leads to greater prosperity. Their structure—not their plan—was their strategy. Designed to be Predictable, Scalable, and Repeatable In our disaggregated process, the way the specialized roles work together slows down decision making.

Finding Yield Without Undue Credit and Duration Risk A Process Designed to Find Value Beyond the Benchmark The specialization built in to our investment process positions us to evaluate assets and implement strategies that require deeper analysis, focused resources, and specialized expertise.

Subscribe to Our Perspectives. Follow us. We have saved your site preference as Institutional Investors.