Fund Manager Visit- March
By Fenwickefinancial On March 23, 2016
Earlier this month I visited the offices of Schroders Investment Management for an economic update and a review of the Schroder Fixed Income Fund which forms part of most of our client portfolios.
The key take home messages for me were:
• Australian equities are starting to look better value when compared to the other asset classes
• It is currently a very poor time to be indexing fixed interest exposures as the duration of the index has been increasing due to QE at the same time yields are at record lows
• China is not heading for a hard landing
• There are pockets of good valuation along the capital structure including hybrids which look to be fairly priced for the first time in many years
• The Schroder Fixed Income Fund is not in the global deflation camp and has been underweight duration which has cost it performance in the last 18 months as global bond yields plumbed new lows.
We remain convinced that Schroders are a high quality fixed income manager and are happy to remain invested with them along with our clients.