The past two years have seen a spate of consolidations among asset managers, particularly in the boutique space. David Stevenson finds out why.

It’s a tough market for asset managers. Not only does the current barrage of regulation mean greater costs, but clients are also putting pressure on fees. For smaller players without economies of scale, additional costs can eat into profit margins.

Though some firms have looked to partner up or sell, forced sellers of asset managers are rare – though arguably Legg Mason’s acquisition of Scotland’s...

Ligia Torres, head of emerging markets at BNP Paribas Investment Partners, discusses her firm’s core philosophy and investment strategies. 

How does BNP Paribas Investment Partners approach emerging markets?

We firmly believe that consistent performance in emerging markets can only be achieved by having investment professionals based in those markets. Because our business model is not only to cover global clients, but most importantly to grow and service our domestic clients based in those jurisdictions, our business philosophy is much more...

With developed market bond yields at historically low levels, David Stevenson asks how attractive Asian bonds are compared to other emerging markets.

It’s safe to say that emerging markets have been in the doldrums for some time, ever since the 2013 ‘taper tantrum’, when the US signalled it was scaling back its asset purchasing programme. Prior to that, investors couldn’t get enough of emerging market debt. 

How times have changed.

In the past year, Asia has seen China’s Shanghai Composite Index lose 30% of its value in a month...

Adeline Ng, head of Asia fixed income at BNP Paribas Investment Partners, sees positive fundamentals in the region’s bond markets.

Why should European investors consider Asia Fixed Income for their portfolio allocation?

The low interest rate environment is impacting the attractiveness of European fixed income instruments. This environment has prevailed since the Global Financial Crisis (GFC). The current backdrop has the European Central Bank (ECB) committed to Quantitative Easing (QE) measures and various countries are cutting interest rates...