Financial Market Analyses BLI - Banque de Luxembourg Investments
Bond Portfolio Management in a low yield environment
Managing bonds: it's all changed! Once upon a time, you could manage bonds simply by referring to market indices. But historically low interest rates have ravaged the landscape. The methods that worked yesterday have been seriously undermined today, making it even more important to go back to the asset class’s ...
South Korea: towards an improving corporate governance?
For a long time, Korean businesses have shown a weak level of corporate governance and inefficient balance sheets. Companies’ profitability has been weak leading to an important valuation discount. Mr Moon’s election as President of South Korea last year raised hopes for improvements in both corporate governance ...
Investing in Japan – Crossroads ahead?
Five years have passed since Shinzo Abe became Prime Minister, promising to revive Japan’s economy and end its persistent deflation with his ambitious Abenomics programme. Recently, however, his standing has suffered and his future briefly seemed to be put in jeopardy by his potential implication in the Morimoto ...
The return of the volatility on the financial markets
Volatility has returned to the financial markets. Three subjects which are currently bothering the financial markets (apart from the declarations and decisions of the American president) merit exploring in greater detail: growth, inflation and the Federal Reserve’s monetary policy, as well as the repercussions ...
Passively speculating / Thoughtless investing
Since its early days over 40 years ago, “passive management” (can it really be called management?) has attracted an exponential inflow of assets and a proliferation of products, now more than ever before. An era of easy profits?
Investment strategy 2018
As the saying goes: “To know where you're going, you need to know where you are.” So where exactly are the financial markets as we start this new year? To say the least, equity markets enjoyed an excellent performance in 2017. It is hard to think of an index that did not increase by at least 10% in local currency. ...
Winning Strategies for European “Small Caps”
Our investment methodology places paramount importance on a company's competitive advantages. One of the tools used to evaluate these advantages is the Five Forces model developed by the American economist, Michael Porter.
Investing in the “Sweet Spot” of the US market
The market for smaller companies in the US is roughly the same size as the entire European equity market. Yet, it is often falsely overlooked by investors although mid-caps show the best historical risk-adjusted return profile. We believe they deserve to play a more significant role in investors’ portfolios.
A ratio is worth a thousand words
Strong sales or earnings per share growth, consensus beat, attractive dividends, regular share buybacks, big mergers & acquisitions, ... Numerous companies, investors and journalists use all sorts of proofs of value creation. However only one measurement exists: the return on capital employed (compared to the cost ...
BL-Equities Dividend: a look back, 10 years after launch
The BL-Equities Dividend subfund celebrates its 10th anniversary. The fund’s objective is to achieve long-term capital growth by investing in high-quality companies, while offering a dividend yield higher than the broad equity market. Interview with the two fund managers, Guy Wagner and Jérémie Fastnacht.