Rising prices for goods and services are one of the biggest risks for investors in conventional government bonds. But there are ways for active managers to generate positive returns from rising – and falling – inflation.
In the case of the Spanish Green Bond, the expected breakdown of the bonds will go from Clean Transportation, to sustainable management of water and wastewater to biodiversity conservation.
We have chatted to the portfolio Managers of the Schroder International Selection Fund Global Credit High Income and the Aberdeen Standard SICAV I – Frontier Markets Bond Fund.
Since the beginning of 2020, the market has paid up for companies with strong sales growth. Share prices of companies in higher-growth industries and in some value industries have dramatically outpaced their earnings growth.
Despite low yields, bonds can continue to diversify risk in broad portfolios, and active management offers the opportunity to capture additional return over government bond yields.
While thinking about funds not to worry about during your holidays, one might think about low risk, low duration funds, highly uncorrelated or balanced funds.