Fixed income portfolios, and those with cautious mandates, may be under the spotlight in the latter half of 2013.
Dan Hurdley is director of research at Asset Risk Consultants.
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PRIVATE CLIENT’S THEMES
Conversations that Asset Risk Consultants has had this year with private client discretionary managers have covered several themes:
- Managers are working very hard in the fixed income space to find value. Index-linked products generally worked against managers and conventional bonds remained out of favour in portfolios.
- Duration was shortened further with some managers holding significant cash allocations in cautious portfolios, resulting in a “barbell” with equities providing the returns and cash moderating the risk.
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