Schroders: What does the election of Donald Trump mean for Emerging Market Debt?

As we all continue to manage through these challenging times, Schroders extends our heartfelt regards to everyone. We stand by you as global citizens, and as capital market partners.

In this edition of our Quarterly series, Michelle examines the impact that recent Central Bank and government actions continue to have on the fixed income market, as well as where she and the team are seeing dislocations, as well as potential opportunities.

With markets continuing their pattern of high volatility across all asset classes, Remi Olu-Pitan and Merrick Styles, fund managers in our Multi-Asset group, will provide an update on how asset classes have performed in Q1 2020 and to look ahead for what pension schemes can continue to expect from Q2 onwards.

Remi and Merrick will cover how the Covid-19 pandemic has impacted multi-asset investments and the world economy, before discussing performance, asset allocation decisions and their thoughts on what the next cycle might look like.

You will also be able to submit your questions live to the presenters throughout the session.

An update on UK LDI markets in the current environment

With a pension scheme’s Statement of Investment Principles (SIP) now containing trustees’ policies on financially material considerations (including environmental, social and governance matters), the stewardship of investments and the extent to which members’ views are considered, attention is now on October 2020 when trustees must produce an implementation report explaining how they have followed and acted on the investment policies outlined in their SIP.

Jessica Ground, Global Head of Stewardship and Lesley-Ann Morgan, Head of Multi-Asset Strategy, will discuss the upcoming need for trustees to report to scheme members on the progress they have made in integrating sustainability into their scheme’s default investment strategy. They will also examine the level of reporting available and how investment strategies have adapted to integrate ESG as part of the day-to-day investment decision making process, to help trustees meet this new requirement.

Join us for Schroders Investment In Focus Webinar on Wednesday 18 March on the different investment opportunities across the credit universe.

Andy Chorlton (Head of US Multi-Sector & Fixed Income Solutions) will lead a discussion around the fundamentals of different credit markets. He will discuss where we see relative value and how we are currently positioned across our multi-asset credit portfolios, especially in the context of the ongoing market volatility. Sean Markowicz (Research Strategist) will outline the case for active asset allocation and security selection in credit portfolios.

There will be plenty of opportunities to ask questions and engage in the session.

Michelle Russell-Dowe, Head of Securitized Credit, presents on the research her team is doing on the credit markets by and large, and trends they’re seeing within Collateralized loan obligations (CLOs), global ABS, and more.

A new event that will focus on current market trends and dynamics, with perspectives delivered by Schroders' Head of Securitized Credit Michelle Russell-Dowe.

Given the challenges facing ‘traditional’ fixed income, we think segments of the securitized market warrant consideration for being a strategic portfolio component, given their better fundamentals and lower volatility compared to the more popular (and crowded) credit markets. Hear from Head of Securitized Credit Michelle Russell-Dowe as she gives her insights and opinions on the securitized space, how we expect the asset class to fare in today’s low rate environment, and where she sees opportunities within the consumer-driven, housing and real estate segments.

Schroders' Global Head of Stewardship Jessica Ground provides the Team's views on their latest ESG-related research

Corporate governance is a well-practices component of ESG analysis. But what about a company's social and/or environmental footprint on society. This is a much more difficult arena of analysis to do with any consistency or success.

In this edition of our quarterly series, Jessica Ground and Andy Howard discuss SustainEx, a new proprietary tool that provides quantitative analysis of these factors across companies and sectors, so that investors can better understand the financial impact of doing good, or continuing unethical business practices.

Sarah Bratton hosts the Sustainable Investment team as they kick off the New Year with several timely topics including the relevance of ESG factors in managing both trade wars risk and the proliferation of artificial intelligence (AI) in the global economy. They will also touch on divestment practices and trends among several ‘sin sectors’.

On this All Hallows' Eve edition of Schroders’ Sustainability Quarterly webinar, we look at ESG-indexing, and ESG within the Emerging Markets, both areas that can potentially offer tricks & treats.

The combination of rising demand for index-based investment products and an increasing appetite for strategies based on ESG criteria has led to a sharp increase in ESG-branded products. We highlight a number of reasons why these simple, low-cost solutions may not provide either the financial or sustainability outcomes investors are likely to expect.

EM have tended to exhibit greater volatility than developed markets. Less stringent regulation, rapidly changing demographics and evolving policy environments can add to the uncertainty for EM investors. These
issues are less likely to impact better managed, more sustainably run companies, in our view.

Schroders recently held its Quarterly Fixed Income Investment Forum, and for this webinar David Knutson will give a glimpse into this 3-day discussion by recapping several debates that went on, including the state of the USD, and inflation. He will also offer a research analyst's perspective on another current debate sparked by recent tweets - quarterly reporting.

Emerging market equities remain an attractive area to find growth. While liquidity and FX remain powerful drivers of EM asset prices, for those with a longer-term view, we think the fundamentals are strong and there remains compelling alpha to be had across region, sector, and market cap. So where are we seeing value?

Join Dr Michael O’Brien and Derek Power from Schroders QEP team as they look at the secular changes that are transforming this dynamic and diverse asset class -- and where they see opportunities.

Please join Jessica Ground and the Sustainable Investment team as they dive into the ESG topics currently making waves.

No one wants to vacation on a beach full of plastic. With more regions talking about banning some plastic items, what is the impact for the plastics supply chain, and end users. Meanwhile, as summer temperatures reach record highs, we will revisit our Schroders Climate Progress Dashboard a year on from launch and see how the thermostat is re-calibrating. Finally, as you pack up the car for your big summer trip, is there a residual risk that is not being captured within the auto loan industry, despite banks tighten up their consumer protection rules and processes?

Johanna Kyrklund, Global Head of Multi-Asset Investments, provides a mid-year assessment of the Team’s cyclical & risk scenarios, as well as where they anticipate opportunities arising across the global markets. Topics to be discussed include:

* Are risks in the global economy moving from a reflationary bias to stagflation?
* Mid-term scorecard for the Fed
* Comparing & contrasting European versus US opportunities and risks
* Is it time to re-engage with emerging markets from an asset allocator’s perspective?
* And Q&A

Join Schroder's ESG Team for this new webinar series aimed at bringing you the Team's latest research highlights. This session, we will present the findings from our Global Investor Study related to ESG, including which counties and demographics are most engaged, and what challenges does this create for investors. Next, we will turn to our recent Global ESG engagement activity and run through our recent research on US Corporate Governance trends, with insights into our pre 2017 AGM season engagement topics. Finally, we will discuss our cutting-edge research on the Emerging Markets where we have been doing some focused work engaging on bribery and corruption.

Please join Tom Wilson of the Schroders EME team as he examines the latest trends and market events impacting the Emerging Markets.

It appeared that the environment for emerging market debt was improving as many developing countries have brought inflation under control, have seen an improvement in their competitiveness and have scope to reduce interest rates. But the election of Donald Trump has raised the spectre of US protectionism and resulted in rising Treasury yields. Alan Cauberghs, Investment Director, explores whether the outlook for emerging market debt has changed materially and if the asset class can still generate attractive returns in the revised political climate