October, 2020
FIGO generated a negative performance in October. Our exposure to US treasuries detracted from the performance as market participants are expecting future fiscal programmes to follow the US elections - putting an upward pressure on nominal rates.
Similarly, our allocation to US equity via mainly call options generated a negative return as fears of new virus restrictions sparked a sell-off in equity markets.
This was partially offset by our exposure to European peripherals government bonds – particularly in Italy and Spain – which rallied through the month after the ECB, at its October meeting, clearly signalled that additional stimulus measures are likely to be unveiled before the end of year.
Finally, our exposure to securitized assets – particularly to Non-Agency MBS - contributed positively due to a continuing improvement in housing and business activity in US.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/blackrock-fixed-income-global-opportunities-fund-en-au.pdfAugust, 2020
FIGO generated a positive performance in August. Our allocation to securitized assets along with our positioning to European and Asian credit contributed to the performance amid a buoyant market environment with strong technicals seen during the month. In addition, we had a positive contribution from our US equity position - through mainly call options - as equities appreciated during the month. Finally, we saw a positive return coming from riskier parts of the credit market such as from our emerging markets debt allocation – mostly to corporate debt in hard currency. This was partially offset by the negative performance from our US treasuries allocation as US nominal yields increased after inflation expectations arose following the Federal Reserve comments at the Jackson Hole meeting.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/blackrock-fixed-income-global-opportunities-fund-en-au.pdfticker: BLK0003AU
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Under Portfolio Performance
asset_class: Fixed Income
asset_category: Diversified Credit
peer_benchmark: Fixed Income - Diversified Credit Index
broad_market_index: Global Aggregate Hdg Index
structure: Managed Fund