Presentations

Analysis from the Intergovernmental Panel on Climate Change (IPCC) clearly shows the challenge ahead of us. Climate change has meant a rapid increase in global temperatures. Recent rises are unprecedented, even when we look back at a period of more than 2,000 years. Moving to a lower carbon world will involve widespread change and a huge amount of finance. This is the challenge of transition. And, for investors, it’s creating new kinds of risk and opportunity. At Invesco, we’ve launched a new fund which aims to support the transition to a low carbon economy over the medium to long term, while seeking to provide income and capital growth. The Invesco Sustainable Global Income Fund. This fund combines some of our best ideas on fixed income and global equities, and is supported by a team of more than 30 analysts. It has the freedom to flex its asset allocation across regions and between asset classes, depending on where the most attractive income opportunities can be found.

The rapid growth in ESG-led strategies has driven a flight of capital out of those sectors and companies perceived as less ‘good’ in ESG terms, and this is especially true in terms of climate and the energy transition necessary to reach net zero targets. However they could still be relevant in a green economy, and even be critical to enabling the energy transition. Rather than avoiding them, we engage to unlock their value to achieve both real world carbon emission reductions and alpha for our clients.

After a year of rising inflation and interest rates in 2022, 2023 could mark a turning point in the economic cycle, with the risk of a recession in the United States and Europe. How will monetary policies change in this environment? What would be the consequences for equity and fixed income markets? How can investors react to this situation?

Addressing social inequality through financing projects with a positive social outcome, including basic infrastructure, essential services and sustainable food systems.

In 2022, macro and geopolitical factors were the dominant forces ruling the equity markets. The global value rotation took the world by storm, and longer-duration technology stocks felt more pain in that environment. However, with the reset of tech valuations in 2022 and the recent ebbing of inflation, investors might start revisiting their tech allocations in 2023. Technology megatrends as the new face of tech offer an innovative way to future-proof your tech allocation for years to come. In this session, we will discuss:

• The state of the technology megatrend strategies in Europe
• How technology megatrends can enhance your tech allocation
• Technology megatrends you should consider for your tech allocation in 2023

After a successful 2022, how has Team Kaldemorgen reallocated assets within Equity, Fixed Income and Currencies to better align with the new environment?

2022 turned out to be another challenging year for China, marked by the geopolitical tensions and zero-Covid policy leading to supply chain disruptions and economic slowdown. After these challenging times, what to expect from China and how to invest Chinese Equities going forward?
At a time when most investors are structurally underweight China in their allocations, we are convinced of the structural opportunities and alpha generation potential offered by Chinese markets for selective investors who know where to look for. Haiyan Li-Labbé, Fund manager & Greater China Specialist at Carmignac will discuss the opportunities and risks for China, along with her favorite investment themes for 2023.

Fundamental and behavioural factors are becoming increasingly important in equity management. Momentum, which captures trends, is historically one of the most effective and adaptive factors. Chahine Capital, a pioneer in quantitative Momentum management, will explain how it combines this signal with ESG to identify “star” performers in an All-Cap Equity Universe.

Biodiversity is all around us: food, water, fibers, timber, or medicines, are all ecosystem services provided by nature. And without them, our society and economy as we know it, would not be possible. Combining restoration of nature and investment is a $10.1trn annual business opportunity in the coming years. The RobecoSAM Biodiversity Equities fund aims to uncover these new sources of alpha, thus creating both wealth and well being.

Sustainable investing is entering a new era with investors increasingly seeking a positive environmental or social impact with their assets and we believe fixed income investors will be a meaningful force in driving sustainable change through the allocation of capital to impact bonds.
In this workshop we will discuss how our Responsible Horizons franchise is set to make your investment count looking at opportunities globally across developed and emerging markets impact bonds.

Infrastructure is the backbone of society, providing essential services for the stability and growth of the economy. As these assets operate in industries with high barriers to entry and are supported by regulation and/or take-or-pay contracts, they exhibit highly predictable, resilient and inflation hedged earnings’ growth supported by high cash distribution levels. The combination of defensive cash flow characteristics and above market average yield makes the investment proposition in Global Listed Infrastructure very appealing for investors.

The year 2022 has seen a reversal of the global geopolitical chessboard, crystallising multiple economic challenges (global inflation and associated rate hikes, slowdown, market volatility, etc.). As we are entering in a new era, what expectations can we form for the year ahead?
From the dynamics of the world’s central banks to the prospects that China gives in the wake of its latest Congress , to a record high US dollar as well… Here are the issues at stake that we will be discussing in this session, in order to invest in turbulent times with a top-down view.

Given the current macroeconomic environment and negative outlook, the conventional answer would be a resounding ‘no’. However, smaller companies have historically began outperforming soon after a recession has started! Allocating capital ‘today’ could create an attractive entry point for those with long-term investment horizons.
At abrdn, we have a history of identifying smaller companies with strong, sustainable business models that generate value for our clients.

Asset managers can be powerful actors in accelerating the transition to a more sustainable society, with the “S” in ESG taking on more prominence going forward. How can a positive and measurable impact on society be achieved through publicly listed equities and bonds? What are the practical considerations when building an investment strategy with the dual ambition of long term financial and sustainability performance? What considerations should asset managers be looking at as a responsible business as well as a responsible investor? Join us and find out why we are confident about the role we can play in more diversity, equity and inclusion.

With everything from economic agony to celebration-worthy inflation outcomes on the list of possibilities, Apostolos Katsaris, Senior Client Portfolio Manager at PGIM Wadhwani, will share why he thinks an agile liquid alternative approach with expanded investment options and directional trading capabilities should fare well in what could be a volatile year ahead.

The Morningstar Awards for Investing Excellence identify the year’s most exceptional funds and fund managers for investors around the world. Awards are announced throughout the year at ceremonies across Europe, Asia, Africa, and the Americas, honoring managers that have added the most value for investors.

Major sustainable challenges such as climate change, biodiversity loss and a transition to a more inclusive world are top of mind for investors and the planet. In this session, Katherine will be interviewed and discuss the key solutions in development to address these sustainable challenges, and how we’re building investment portfolios to access and invest in these innovative ideas.

Times are challenging: headlines are dominated by geopolitical tensions, the pace of climate change, healthcare systems under pressure, and the rising cost of living alongside higher inflation. Against this backdrop how can equity investors help address these challenges whilst still making attractive long term investment returns? Find out how investing for positive change can mean profits and purpose go hand in hand.

Private Equity used to be reserved for very wealthy families or institutional investors. The European Long Term Investment Fund (ELTIF) changed this and now individuals can access some of the same strategies as the professionals. In this presentation, Wim Nagler will focus specifically on Private Equity and how to participate in the growth of the European local economy by investing in companies that are not listed on the stock market. Join our presentation to explore the exciting investment opportunities in this field.

Access to private markets for private investors is a hot topic, but is still dominated by supply side and demand side constraints.

On the supply side, the only widely distributable wrapper into the retail segment was the ELTIF, but there is a shortage of investment opportunities.
On the demand side, clients want private market investments to be as close to traditional investments as possible.

Against this backdrop, innovation happened in three dimensions (1) investment side, through semi-liquid solutions, (2) regulatory side through ELTIF review where the industry pitched in, (3) operational side, through tech solutions. We discuss how investors can successfully navigate this dynamic environment.

The public authorities’ task of avoiding a major economic or financial crisis in the context of a global recession looks extremely challenging. Investors’ risk appetite is likely to remain low in an environment marked by central bank monetary tightening, geopolitical tensions and the risk of a pronounced slowdown in the global economy. How to invest in 2023? Guy Wagner, CIO of BLI – Banque de Luxembourg Investments, gives an outlook on the financial markets.

The Belgian fund market in 2021. An overview of the Belgian Asset Management and Fund Industry looking at the numbers and detecting the major trends.

This session quantifies the financial uplift that diversity delivers in the asset and wealth management industries. We undertook this work because while the social case for diversity is clear, the financial and investment implications are often less well-understood. We analysed thousands of portfolios built by Goldman Sachs Asset Management clients and found some important differences in how diverse teams build portfolios compared to single-gender teams. We share the investment implications for portfolio constructors and fund selectors. We also orient our findings within the broader landscape of studies on diversity.

U.S. Small Caps could be viewed as a “forgotten asset class”: For instance, the Russell 2000 index of smaller companies only makes up 6.1% of the All Cap Russell 3000 index currently, near its closest ebb in 20 years. Investors have instead focused their attention on other segments of the amarket such as large cap growth stocks. Yet, this runs counter to longer term return trends and could set small caps up for a sustained period of stronger performance, particularly as they appear historically cheap, in both absolute terms and relative to large caps.
They are also well positioned if markets have entered a phase of higher rates and higher inflation given their solid record in such environments.
In addition, trailing 5-year returns for U.S. smaller companies have been weak in comparison to long-term averages and in this configuration, the subsequent average annualized 5-year performance for the Russell 2000 small cap index has been positive 100% of the time and higher than the average 5-year return (13.8% vs. 10.5%).
Royce Investment Partners is a specialist investment manager subsidiary of Franklin Templeton and has been part of this organization since 2001 but its existence dates back to 1972 when it was founded by Chuck Royce, even before the main small cap indices were launched. It is a dedicated small cap specialist as opposed to a small component of a larger business and the totality of its 39 investment professionals are focused on this space. This has enabled the company to build a unique domain knowledge of the asset class, which would be nearly impossible to replicate today. It also allows for a broad dissemination and sharing of ideas across the firm.
We offer both U.S. and global portfolios investing in smaller companies. Two U.S. small cap UCITS funds are available, representing highly active, very complementary approaches in this space.
• Royce US Small Cap Opportunity fund

o The process starts with looking for cheap stocks that are experiencing a rough patch to due to challenges specific to the company or because of industry-wide issues.
o It is a value strategy investing in a very diversified portfolio of small and micro caps, differentiating it firmly from most of the competition, which gravitates towards quality and growth.
o It is a volatile fund that tends to amplify market moves up and down, with upside/downside capture ratios of 1.29 and 1.08 respectively over the past 3 years. It has a great track record of capturing the upside coming off significant drawdowns, e.g. most recently in 2020.

• Royce US Smaller Companies fund

o The starting point is a quality starting point. The fund looks for companies with solid balance sheets, superior profitability and the ability to generate high levels of Free-Cash-Flow, which it seeks to purchase at attractive valuations. As Lauren Romeo, the portfolio manager, puts it, it invests at the “intersection of quality and value”.
o This makes it a core portfolio which could be a better option for investors which struggle to get over the level of diversification in US Small Cap Opportunity or prefer a more balanced option. Upside/downside capture is 1.04 and 0.99 over the trailing-3 years.

China is changing and regularly in the news for many reasons, yet its economic growth over decades cannot be ignored. Expected to being the world’s largest economy over the US by 2030, China is increasingly driven by innovations in technology, data and science. Its capital markets are developing with a similar energy, on their way to becoming an integrated part of the global financial system. Investors are able to explore new and more accessible opportunities in China equities, including China A-shares. Find out more in the workshop with Allianz Global Investors.

In this 30-minute session, Vanguard’s European head of investment product specialism, Mark Fitzgerald, will explore the fundamental principles of investment success that have served Vanguard’s investors so well as the company has grown to become one of the world’s largest asset managers.

Maintaining a long-term, balanced approach lies at the core of Vanguard’s investment philosophy, helping the firm grow its global multi-asset franchise to over a trillion euros AUM in 2022. Yet the past year has been unusually difficult for multi-asset investors, with global equities and bonds falling in tandem, and bonds in particular posting record losses. Inevitably, this has fueled questions around the role of the traditional balanced portfolio of shares and bonds and has given rise to a number of ‘myths’ around multi-asset investing that have grown in popularity.

To help investors stay focused on their long-term plans amid the volatility, Mark will debunk some of the top myths that have been gaining traction in the current market and highlight the benefits of Vanguard’s long-term balanced approach to investing:

• Myth 1: Bonds no longer provide sufficient diversification from equity markets
• Myth 2: Rising rates are bad for bond investors
• Myth 3: Investors are better off withdrawing to cash until markets recover
• Myth 4: Alternatives offer a better hedge against inflation
• Myth 5: Active managers outperform in down markets
• Myth 6: Thematic exposures help investors navigate volatile markets

There will be a Q&A at the end of the session for participants to ask questions. We hope you’ll join us for this timely and informative discussion.

As standard benchmarks become less and less effective as a representation of the diversified investment opportunity in emerging markets equities, particularly in the domestic Chinese market, the debate continues around the case for active versus passive management in the asset class. Navigating the current ESG landscape is a key area where active management has an advantage. In this session, Luke Richdale, will be interviewed and discuss the case for active investing in EMAP and the approach to ESG integration.

In the workshop we will discuss the opportunity for European High Yield, often still overlooked as an asset class by investors. In the current market context European High Yield is very interesting addition for any portfolio but with a risk of capital loss and a risk of default more important. We will look at historic returns and discuss current market fundamentals and explain why we at Oddo BHF believe the time is now to reposition itself on European High Yield.

At BlackRock, we believe that diversity, equity and inclusion (DEI) are key to stronger prosperity for the economy and society as a whole. We are committed to DEI across every level of our firm and within every country where we operate. Better inclusion of women into the financial landscape is therefore part of our strategy, and this encompasses better inclusion of women into senior functions of our firm and across the industry, stronger investment into women-founded and/or women-led companies, as well as empowering women as end investors to ensure they have the tools to prepare their own financial future.