Fund Manager, Fixed Income
Using the full breadth of markets across credit, rates and currencies provides many opportunities, but the key in this environment is determining the amount of risk, and where and when to take that risk.
By design, absolute return strategies are generally aimed at producing relatively stable returns through different market environments. But with markets suffering several bouts of volatility this year, most recently in October, has your absolute return exposure delivered on expectations?
Familiarity bias is like being at a party where it’s easier to chat with friends than mingle with strangers — but it can lead to sub-optimal diversification as investors stick to familiar ‘go to’ assets, rather than exploring the full universe of options.
Faced with this raising rate environment, absolute return oriented bond strategies are an ideal complement alongside traditional fixed income in client portfolios to meet the ongoing need for income, coupled with the desire to protect capital as yields pick up.
Mihkel Kase, Credit Securities Fund Portfolio Manager, outlines the benefits of our multi-strategy approach to credit investing, including the breadth of the opportunity set, current trends in corporate bond and credit markets and benefits of taking an active and diversified approach.
Mihkel Kase, Fund Manager, Fixed Income, discusses how falling cash rates and with the search for yield continuing, we see credit playing an important role in client portfolios. He provides insights into the breadth and diversity within the credit universe and the optimal way to invest. Click the download button below to access the full paper.