Duration raises mis-selling risks in bond-heavy portfolios
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.
Duration
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Vanguard: We’re not troubled by duration in Lifestrategy
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.
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Duration outperforms despite rate hike concerns
Long duration funds outperformed in the second quarter of 2018, despite investors’ ongoing concerns around interest rates.
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Neuberger EMD fund reduces currency and duration risk
The Neuberger Berman Emerging Market Debt Local Currency Fund has reduced currency and duration risk in the portfolio following underperformance against the benchmark over the last quarter.
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How nine multi-asset funds are managing duration
Fixed asset allocation in the passive Vanguard Lifestrategy range has seen duration soar above 9 years, so how are active multi-asset managers positioned as interest rates look set to rise?
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Advisers favour Vanguard Lifestrategy despite duration concerns
Advisers continue to favour Vanguard Lifestrategy for multi-asset exposure, despite concerns the range’s high duration leaves investors exposed to rising interest rates.
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Investors exposed to soaring duration in Vanguard Lifestrategy
Vanguard’s £9.6bn Lifestrategy range is exposing investors to interest rate risk, as governments and corporates buying up cheap, long-dated debt skew duration in indices that the passives giant tracks.
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Candriam bolsters €35.2bn fixed income line
Candriam has expanded its fixed income range with the launch of a total return defensive bond fund.
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Bond investors sleepwalking into duration risk
Two asset managers have warned that bond investors, particularly those in passive vehicles, are too exposed to duration risk without realising it.
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Five reasons not to fear government bonds
Though the recent uptick in inflation expectations and the Trump-fuelled reflationary trade have scared many investors away from government bonds, five portfolio managers argue there is still value to be found.
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PA Podcast: In search of a fixed income battle plan
David Riley, head of credit strategy at BlueBay Asset Management discusses regime change, the risk benefits of reflation, and the dangers lurking in duration.
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Diversification by itself is not enough – Onuekwusi
Fixed income diversification is crucial in the current environment says LGIM’s Justin Onuekwusi, but it is not, in and of itself, enough.
