Should you be allocating more to bonds?
With talks of recession here and globally, is it time to reconsider your fixed income allocations?
Alex Burke
April 11, 2019
With talks of recession here and globally, is it time to reconsider your fixed income allocations?
As the world changes so too must the approach to meeting client goals.
It may seem counter-intuitive, but there’s nothing ‘fixed’ about the fixed income market.
Fixed income has changed. It no longer focuses on just US bonds and dollars, it is now a global market across different asset classes. MFS explains how it looks at building a fixed income portfolio.
Volatility is back in markets this year and the risks of not paying attention are magnified. In fixed income, interest rate shifts and central bank actions make it particularly important to be aware of recurrent myths surrounding this asset class.
I have to admit; fixed income is harder to become engaged with. Stocks are easier to understand, more tangible and less complicated from an investor’s perspective. The world of fixed income always seems that bit more complex, and well, dare I say it, boring. However, as Vanessa Stoykov writes, fixed income is having a moment, and is no longer the bridesmaid in investment portfolios.
As an asset class, fixed income is often overlooked in favour of newer and more dynamic investment strategies, however, at a time when we’re expecting to feel the result of quantitative tightening around the globe, and volatility and uncertainty are returning to markets, perhaps predictability and stability of returns are just what’s needed. In this Market Update, Anne Anderson of UBS Asset Management makes a case for fixed income, how it’s being used by younger investors to realise their goals, and why it’s needed now more than ever
After interviewing thousands of thought leaders across the years, some stand out more than others. Vanessa Stoykov reflects on her conversation with Chris Rands of Nikko Asset Management and shares why it caused her to think differently about overseas property investors and fixed income, and why you should too.
There’s been immense public backlash around overseas property investors, but are we being too hasty in our assessments? Chris Rands of Nikko Asset Management explains the short-sightedness of this approach and details the other factors set to impact property prices moving forward.
As long as interest rates remain low fixed income returns are likely to be well supported, but this doesn’t mean you shouldn’t prepare for what will happen when rates rise. Chris Rands of Nikko Asset Management explains why you need to be on the look-out for signs of inflation and what kind of impact this could have on your clients’ portfolios.
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