Continuing our Interview Series to learn how professional portfolios are managed, we go into the world of global corporate bonds for diversified income hedged into Australian dollars from liquid bond markets.
Tag Archives | fixed income
As ETFs and LICs compete for market share, there’s enough interest in listed investments for both to prosper, and product innovation in ETFs shows no sign of slowing. Where will the growth come from in 2019?
Bond investing is not only buy and hold and traditional return sources such as income, changing yields and duration. Relative value identifies market inefficiencies and uses risk management techniques in all market conditions.
This wide-ranging interview with Pilar Gomez-Bravo, Director of Fixed Income at MFS Investment Management, covers the role of active management, the low rate environment, portfolio creation and asset class correlations.
Investors shouldn’t automatically assume the inclusion of bonds in a portfolio provides diversity against their equity exposure, as correlations can change in volatile markets.
Exposure to bonds in the last few decades has delivered strong returns, but the risks in simply buying a bond index are acute and investors should consider different ways of investing in bonds.