Church House’s Wharton Q&A: Goldilocks believers are in for a shock
‘We are thankful for levels of quite predictable returns that we haven’t been able to enjoy for a long time’
‘We are thankful for levels of quite predictable returns that we haven’t been able to enjoy for a long time’
This year may have had investors questioning the role of bonds in a portfolio but, looking ahead, there are positives
Short-duration remains a focus even as the US Fed cuts rates
Federal Reserve cuts rates for the first time in a decade to a target range of 2% to 2.25%
Schroders and RLAM among the long duration bond funds dominating performance tables
Credit quality hits star funds in low beta fixed income sectors
Fixed income strategy can be implemented with just two products
Spread between two and 10-year treasury yields has fallen from 2.6% to 0.2% in five years
Absolute return portfolio based on strategy launched in 2012
AJ Bell and Seneca are among investment managers shedding bonds as rate hikes loom, but others are concerned alternative assets present new sources of risk.
With interest rate rises looming, duration concerns are now becoming more tangible and many commentators are wondering if a bond mis-selling scandal awaits low-risk portfolios full of bonds.
Vanguard has faced criticism for soaring duration in its fixed allocation Lifestrategy range, but investment strategist Ankul Daga is doubtful tactical decisions made by active managers will deliver superior results.