Asset Allocator  

Special report on fixed income

  • Understand how DFMs have been shifting their fixed income allocations recently
  • Describe the concerns some DFMs have about strategic bond funds
  • Explain why some allocators are moving out of high yield bonds
CPD
Approx.60min
Special report on fixed income

Introduction

By Damian Fantato

Welcome to Asset Allocator's first special report, which is supported by JPMorgan Asset Management.

In our inaugural edition, we take a look at the fixed income space which has been subject to a fair bit of volatility in recent times.

Rising inflation, changing monetary policy and turbulent geopolitics have all contributed towards a period of flux for this asset class so in this special report we have a look at some of the issues facing allocators.

We have a look at how allocators' bond allocations are evolving, we explore the ways in which portfolio managers use strategic bond funds, we discuss whether times are about to change for high yield bonds and we examine the pros and cons of using bond funds versus investing directly in bonds.

As an added bonus, this special report qualifies for 60 minutes of CPD from the Chartered Institute for Securities & Investments, which has recently agreed to accredit Asset Allocator's content.

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Why does James Burns say the extra spread you're getting paid for corporate bonds isn't worth it in the event of a growth shock?

  2. What does Chris Metcalfe think is the hallmark of a strong strategic bond fund?

  3. Why has AJ Bell cut its exposure to high yield bonds recently?

  4. Alex Funk at Schroders uses bond funds, as opposed to buying bonds directly, because it helps spread risk

  5. Which region's government bonds does Iain Stealey think are particularly attractive at the moment?

  6. Strategic bond funds must have at least 95 per cent of their assets in sterling denominated fixed interest securities

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Understand how DFMs have been shifting their fixed income allocations recently
  • Describe the concerns some DFMs have about strategic bond funds
  • Explain why some allocators are moving out of high yield bonds

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