EI Sturdza is a multi-boutique provider of investment funds offering equity strategies for Global, China, Japan, developed Europe and the US, as well as EUR denominated and USD denominated (both developed and emerging market) fixed income strategies to high net worth individuals, institutions and wholesale investors. The funds/strategies are marketed across Europe, the Middle East and Asia. The business bears the name of its founder, Eric I. Sturdza, and is part of the Eric Sturdza Banking Group
Eric Vanraes, Fixed Income Portfolio Manager at EI Sturdza Investment FundsRecorded: Nov 10 201649 mins
1. Why you should still stay invested in bonds
Because bonds are a natural hedge of other asset classes such as equities but it means that you MUST favour high-quality bonds only, with good liquidity and without high correlation to equities in order to deliver positive performance when stock markets are in negative territory.
2. What are the asset classes that should be favoured?
In EUR, we favour APP (Asset Purchase Program) bonds (Govies + PSPP + CSPP), i.e. bonds bought by the ECB (EUR 80 billion/month) and in USD, we stay overweight long US Treasuries (both 30y nominal bonds and TIPS which are inflation-linked). In USD, we also favour high quality emerging bonds (but high quality only). We avoid any kind of bonds which eventually behave like equities in bear markets (high yield, deeply subordinated bank debt).