Are you chasing risk at the expense of security?

When it comes to fixed income allocations, it's worth considering what role they should play in your portfolio.

While some investors have taken the gradual global reversal of interest rate cuts as a signal to allocate to less traditional fixed income assets, it's worth considering the fundamental qualities of a core fixed income portfolio.

Those are predictability of investment returns, low correlation to growth assets and diversification via investments in different sectors and industries. When you start investing in fixed income assets with equity-like characteristics, it's important to consider how they correlate with equity risk in the rest of your portfolio.

In this piece by UBS Asset Management, you will learn:

  • the power of diversifying fixed income allocations
  • how 'equity-like' fixed income assets can lead to sector concentration
  • how an active fixed income portfolio can weather the storms of market volatility.

For more information on this topic, click here

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