Excel Funds Management Inc.

Emerging Markets

Response to : The four themes shaping bond markets

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Despite all the geopolitical and economic headwinds coming out of Europe these days it really seems as though global equity markets may have found some strong support.


The question that remains, what about bonds? A favourite for investors for many years running now, Fixed Income has out-paced traditional equities for several years running.

According to John Stopford at Investec that does not mean bond markets are trouble free.

Both fixed income in the European periphery and North America may be considered either too risky or just too rich, and low yielding, for the retail investor according to Stopford.

Investec’s co-head of Fixed Income, Stopford believes sophisticated investors may look to hedge their Euro-Bonds with Euro FX shorts or hedge with commodity currency shorts in places such as Canada or Australia.


Other than completely hedging your portfolio( with speculative hedges), Mr. Stopford notes the performance in Emerging market Fixed Income. He notes  both locally denominated FI Markets, lovingly named Local Fixed Income, or in Hard Currency terms namely External Fixed Income( Emerging market and EM Corporate bonds denominated in the US Dollar) may very well continue to prove their outright resilience to any major headwinds.




Author: Excel Funds Management

We Are Leaders. Our Focus is Undivided. Excel Funds is Canada’s specialist in Emerging Market investment opportunities. We pioneered Emerging Market mutual fund design and distribution in Canada. Our focus is undivided – Emerging Markets is all we do. Our Mission Is To Offer Canadians True Global Access By offering Canadians access to rapid growth markets, Excel Funds provides truly global and diverse investment value. Our clients want consistent, responsible and intelligent solutions – we will never stop being challenged and deliver on client expectations. We Listen. We Are Determined To Deliver. Our clients want to understand better. Excel Funds is the only company dedicated to providing investors with actively managed, best-in-class Portfolio Managers based in regional markets. In order to deliver deeper understanding, we are not removed from unique cultural, political and economic experiences. We Initiate. We Create. Investors benefit from strong, sustainable growth. To create wealth for our clients we will: • Offer globally diverse opportunities to capture shifts in world economies • Not resist change and continually lead in Emerging Markets global growth • Engage world class institutional managers for retail investors We Are Passionate. We Will Never Stop Innovating. True leadership is enabling and seeks a positive outcome for all invested. We will not rest on past success, and continue to provide clients with: • Innovative fund structures • Canada’s largest & most comprehensive Emerging Markets products • The best institutional level Portfolio Managers • World class on-the-ground active managers • A singular focus on Emerging Markets, the driver of global growth

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