Growth Investments Ltd has recently held a business breakfast seminar hosted by Schroders at the Hilton Hotel. The topic of the seminar was Asset allocation and Investments Opportunities. This event was exclusively for Investment Services Licence Holders and it was very well attended.
One year on from the collapse of Lehman Brothers the world economy appears to be easing out of recession with equity markets rallying strongly on the back of positive corporate results. Credit markets continue to perform well, however Government Bond Yields have fallen and Gold has broken through $1,000 – moves associated with increased risk aversion.
Schroders looked at these anomalies and provided their views for the remainder of the year on cash, fixed income, equities, commodities and property.
The seminar was opened by Mr Stuart Fairbairn, General Manager of Growth Investments Ltd the local representatives of Schroders, whilst Mr Adrian Harris, Head of Central, Eastern Europe & Mediterranean Region and Mr Thierry Clark, Business Development Manager for Schroders delivered a presentation on “winning investments strategies for an unclear market”.
During their presentation, Schroders explained that there has been a huge rally this year in Corporate and High Yield Bonds that it was not over yet. Mr Harris explained Schroders believed the next two-three years should be a great period to be invested in high yield bonds and in emerging markets. Credit spreads were still at a 20 year high and emerging economies were expected to account for more than half of the world economies growth in 2010.
They explained that the reason why investors should invest now is that the pace of defaults is slowing, liquidity has improved, better earnings results are being announced and the demand continues to be stronger than supply.
Schroders boast an experienced credit team and strong equity team. They have no capacity constraints and their risk-adjusted returns over the past five years are solid relative to the benchmark and peers. Schroders also boasts of a risk management process which is integrated into both security selection, risk budgeting, and protection against defaults.
Growth Investments Ltd is authorised to provide investments services in terms of the Investment Services Act 1994 and is licensed, regulated and supervised by the MFSA. COM091109272