UBS Lunch Returns to Stockholm with FI Insights

    Stockholm (NordSIP) – On Thursday, November 10th, UBS Asset Management held its UBS ETF European Investment lunch at Grand Hotel in Stockholm, following a three-year pandemic-induced hiatus.

    The presentation covered macroeconomic outlook, fixed income indices and ETF market trends and returned, again and again, to the topic of ESG investments.

    SFDR Fund Disclosures

    Foremost among these trends was the rising popularity of ESG Fixed income funds classified as Article 8 and Article 9 under the EU’s Sustainable Finance Disclosures Regulation (SFDR).

    “Most of our investors are moving more and more towards ESG and decarbonisation investments. Non-ESG Fixed Income ETFs seem to be used more as a tactical instrument but ESG Fixed Income ETFs more as a core holding,” said Florian Cisana, Head UBS ETFs & Index Funds Strategic Markets Nordics, France & Israel at UBS AM.

    Commodities Rule the Markets

    Another recurrent topic was the difficult macroeconomic conditions so far this and the implications for returns across asset classes. No market performed well and only commodities appear to have provided positive returns.

    MDBs Offer a Hedge

    Later, in his analysis of potentially attractive fixed-income investment opportunities, Davide Guberti, ETF & Index Fund Investment Analytics, UBS Asset Management, pointed to the ability of multilateral development banks (MDBs), such as the World Bank, the EBRD, the Asian Development Bank or the African Development Bank to combine AAA ratings with exposure to returns in a range of developing markets.

    Beyond their rating, Guberti also highlighted the fact that MDB exhibited defensive properties comparable to US Treasuries during the latest major equity sell-offs, which would make them appealing as alternative to US Treasuries during crises.

    Given the tumultuousness of the market in the last nine months, it is encouraging to find an appealing investment opportunity aligned with sustainable goals.

    Images courtesy of NordSIP and UBS AM
    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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