Dash for cash hits highest level since 9/11
Allocations to defensive assets jumped to 43% in May as global economy outlook darkens
Allocations to defensive assets jumped to 43% in May as global economy outlook darkens
To protect returns against the volatility expected in the months ahead
Around 40 clients invested roughly £4m in the absolute return forex bond
Asset allocators need to be ‘more creative’ than relying on the 60/40 model
As conflict intensifies between Russia and Ukraine
As yields on offer are higher than corporate bonds of the same risk, says fund manager
Crisis highlights need for broad diversification as a way to improve resilience to shocks
This is an interesting strategy which should provide investors with protection against rising interest rates over the long term and a considerably more defensive performance profile than that of the wider high yield bond market.
As traditional 60/40 equities versus bonds approach may no longer work
There is a ‘growing sense of caution’ when researching investment options for clients
‘BoE may have no choice but to raise rates, which could be bad for the bond market in the short term’
But it could help investors stay ‘on the front foot’ and take advantage of arising opportunities