The Importance Of A Global Asset Management Service
The analyst team of asset management professionals at Quadriga Asset Management see corporate and institutional investors achieving returns from Fixed Income through investments within emerging markets and corporate bonds. A significant number of bond investors unfortunately suffered losses in 2019, as most government bonds returned their buyers losses in 2019 if they were held to maturity. Quadriga’s Chief Analyst Gordon Chatfield commented – “The volume of outstanding bonds with negative yields has never been higher than in 2019. At its peak, the value of paper climbed to over $17 trillion worldwide last August”.
Since then, the interest rate squeeze on capital markets has eased somewhat. Meanwhile, bonds with negative yields with a volume of just under $12 trillion are still outstanding worldwide. In an email to clients, Gordon commented – “this does little to change the challenge, above all for European investors, of generating a positive return with interest-bearing paper. Especially since hardly any experts expect the central banks in the United States or in Europe to raise interest rates in the new year”.
Protect Your Company’s Assets With A Strategic Asset Management Plan
Many government bonds in the euro zone, such as ten-year German government bonds, are still considered safe, although they are likely to generate negative returns for the foreseeable future. According to Quadriga’s portfolio management team, those who do not want their assets to shrink or stagnate have two options, investments in fast-growing economies outside of Europe, or riskier corporate bonds. While neither option is ideal, a London asset management service can help manage and protect your assets, while growing your portfolio.
Alexander Gruber, fund manager at Quadriga Asset Management, expects the trend towards lower interest rates worldwide to continue to boost interest-bearing securities from emerging markets. Asset management professionals attribute this to the fact that many emerging markets are heavily dependent on the interest rate level in the USA. If interest rates rise there, international investors will increasingly withdraw their capital from the emerging markets and direct it to the US market.
Conversely, when US interest rates fall, many investors are looking for alternatives in emerging markets. For this reason, the experts from the Austrian asset manager, Erste Group, are still expecting just under three percent annual returns on emerging market bonds over a five-year period.
Alexander Gruber, fund manager at Quadriga warns that investors should pay close attention to where they are investing,. For example, Argentina and other Latin American countries could not benefit from the US interest rate turnaround in 2019. Due to political upheavals, investors withdrew billions, those who did not sell in time are now stuck in poorly liquid Argentine dollar bonds. Lebanon also must reschedule – at the expense of bond investors.
Contact Quadriga Asset Management
To learn more about London asset management service and how it can help your business grow and become sustainable, contact Quadriga Asset Management and speak to an asset management professional who can create a strategic asset management plan to suit your needs and the needs of your business.
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