Record inflows to bonds despite record low yields
Despite bond yields in many markets getting vanishingly low, inflows to bond funds globally have actually accelerated this year.
The hidden equity beta in many fixed income funds
The managed fund research company Morningstar recently announced they are splitting their ‘intermediate term bond’ category into two new categories – ‘intermediate core bond’ and ‘intermediate core plus’ bond.
Bonds don’t always diversify equity risk
With global bond yields back near the low end of recent ranges, it’s an opportune time to revisit a theme that’s relevant to portfolio construction today – the bond vs. equity correlation.
Low yields increase the equity beta of credit investments
With yield chasing capital flooding back into credit markets and pushing up bond prices, the behaviour of corporate bonds is changing.
Positive asset correlations and inflation assumptions
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
Nestegg podcast – Just how defensive is your portfolio really?
In this Nestegg podcast, Gopi Karunakaran speaks with host David Stratford about the current spotlight on the fixed income markets and the importance of a balanced portfolio.
Webinar: Introducing ActiveX
Watch Ardea IM Portfolio Manager Gopi Karunakaran and Fidante Investment Specialist Sam Morris as they discuss the ActiveX Ardea Real Outcome Bond Fund (Managed Fund).
Messy end to ’18 returns focus to fundamentals
Recently in the AFR, Tamar Hamlyn discusses how the past weeks and months have seen financial markets approaching the year-end period with decidedly less lustre than investors might like.
Lies, Damned Lies and Correlations
The carrot that alternative investment strategies often dangle in front of investors is the prospect of uncorrelated returns.
Conventional fixed income is not doing its job
Conventional portfolio construction assumes that governments bonds will diversify equity risk. The theory is that when equities fall, bond yields decline, resulting in capital gains on bonds that help offset equity losses. The problem is that it’s not working that way in practice.