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Market & Views

The Case for High-Yield Bank Loans June 2013 Todd J Youngberg, CFA - Head of High Yield
The Case for High-Yield Bank Loans.
Bank loan mutual funds have seen a record amount of inflows YTD, and there continues to be very high demand for the asset class globally from both institutional and retail oriented investors. This paper contains a balanced assessment of the benefits and risks of the bank loan asset class in the asset allocation decision. We are a strong advocate of bank loans within a diversified portfolio. A few of the topics that you will find in the paper include:
* Bank loans are high yield corporate loans, mainly from industrial companies.
* Bank loans have floating rate coupons that have historically provided a diversification benefit in a rising rate environment.
* Many bank loans have LIBOR floors which can "delay" the floating rate aspect of the coupon.
* Bank loans are secured and typically have high recovery rates in the event of default.
* Bank loans have historically provided strong risk-adjusted returns.

Life and Death on the High Street July 2013 Richard Levis, BSc (Hons) MRICS Analyst – Real Estate and Strategy Research
Life and Death on the High Street: The outlook for in-town retail real estate.
Many of the UK’s town and city centres are suffering as the tightest squeeze on household finances for a generation coincides with the rise of online and out-of-town shopping. However, we believe the widespread gloomy prognostications for the future of in-town shopping are overly pessimistic. Not all town centres are in decline, and in the years ahead there will be winners and losers as the physical retail landscape continues to evolve.
With careful stock selection and the application of high-quality asset management we believe investors in in-town retail real estate can be more than adequately compensated for the risks taken.

The Dilution Effect: Constant or Time Varying?
January 2013
Mirko Cardinale, Phd - Head of Strategic Asset Allocation
Maulshree Saroliya - Strategic Asset Allocation Analyst

Dynamic Market Opportunities and the Outperformance of Active Managers
November 2012
Nicholas Samouilhan, PhD - Fund Manager, Multi-Asset Funds