In a world of increased uncertainty, and of elevated interest rates, finding an alternative to wider investment challenges that still satisfies client demands leaves little area for manoeuvrability.
Azhar Hussain, Head of Global Credit at Royal London Asset Management, believes that allocating to short duration global high yield bonds may provide an attractive solution.
The macro backdrop may appear not as worrying as it was a couple of years ago but neither does it seem terribly exciting, with plenty of concerning developments. Wars in Europe and the Middle East; persistent worries about the US fiscal situation; concerns from the rest of the world that the US Federal Reserve is keeping rates too high for too long; and soft global economic growth. And this is before looking into stickier-than-hoped inflation.
This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.