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.
Rethinking Fixed Income in retirement
Ardea IM discuss some key considerations for retiree portfolios and why actively managed fixed income is a compelling alternative that can complement traditional retirement income sources.
Volatility strategies are reliable risk diversifiers
The large and liquid universe of global interest rate options offers an impressive set of tools from which volatility strategies can be constructed. This article discusses how volatility strategies are reliable risk diversifiers.
The most important chart you’ve ignored
We discuss which chart we are watching closely and what it means to us and investors.
In Focus: Ardea Real Outcome Fund
Watch this Livewire video to learn more about the Real Outcome Fund and the team’s investment process.
Low yields + rising volatility = a toxic combination for bonds
Recent volatility in Japanese government bonds (JGB) highlights the fact that government bonds aren’t so ‘safe’ when yields are very low.
One Measure of Fixed Income Risk is at GFC Levels – Should Investors be Worried?
Tamar Hamlyn discusses the current environment of tightening global liquidity and increasing government bond supply, which is having a knock-on effect on domestic liquidity.
Corporate Bonds – More Risk for Less Return
Credit spreads over government bonds should compensate investors not just for default risk but also for other risks such as illiquidity. Gopi Karunakaran discusses how corporate bond markets are currently not providing sufficient compensation for growing illiquidity risk.
Livewire Exclusive – More trouble on the way?
This time last year Tamar Hamlyn shared with Livewire that inflation and volatility charts were the ones he was watching closely. Tamar now shares his thoughts of what to expect from here and what investors can do about it.