An Espresso with Richard Class and Anton Heese

May 27, 2020

Anton Heese, European Macro Strategist, Global Fixed Income Team and Richard Class, Head of Product Development for EMEA and European Multi-Sector Strategy, discuss macroeconomic implications of coronavirus and the importance of active and flexible approach to investing.

Richard Class

Managing Director

Global Fixed Income Team

Anton Heese

Executive Director

Q&A Session

Q1: Market timing – assuming the volatility peak for credit spectrum is behind us, do you still expect volatility to stay high for the near future? Q2: Looking at credit as an opportunity, could you comment on what we would expect on default rates? And if you could, outline which area / sector.

Question 1: Market timing – assuming the volatility peak for credit spectrum is behind us, do you still expect volatility to stay high for the near future?

Question 2: Looking at credit as an opportunity, could you comment on what we would expect on default rates? And if you could, outline which area / sector.

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RISK CONSIDERATIONS

The value of bonds are likely to decrease if interest rates rise and vice versa.
The value of financial derivative instruments are highly sensitive and may result in losses in excess of the amount invested by the Sub-Fund.
Issuers may not be able to repay their debts, if this happens the value of your investment will decrease. This risk is higher where the fund invests in a bond with a lower credit rating.
The fund relies on other parties to fulfil certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
Investment in Fixed Income Securities via the China Interbank Bond Market may also entail additional risks, such as counterparty and liquidity risk.

There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets

IMPORTANT CONSIDERATIONS

The value of bonds are likely to decrease if interest rates rise and vice versa.
The value of financial derivative instruments are highly sensitive and may result in losses in excess of the amount invested by the Sub-Fund.
Issuers may not be able to repay their debts, if this happens the value of your investment will decrease. This risk is higher where the fund invests in a bond with a lower credit rating.
The fund relies on other parties to fulfil certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
Investment in Fixed Income Securities via the China Interbank Bond Market may also entail additional risks, such as counterparty and liquidity risk.

There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets.

Distribution

This communication is only intended for and will only be distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations. In particular, the shares are not for distribution to US persons.

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