Focusing on the specific outcomes that matter most to today's investor
The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested.
The benefits of exposure to a portfolio of balanced convertible bonds are obvious over nearly any long time horizon. During the later stages of an economic and market cycle, however, the rationale for investing in convertible bonds becomes even more compelling.
With emerging market assets under pressure on the back of rising US interest rates, a strong dollar and an escalating trade war between the US and China, our equity and bond teams give their opinion on areas to avoid and where pockets of value are emerging.
With interest rates on the rise – most evidently in the US but also in countries such as the UK, Canada and India – reducing interest-rate risk is clearly an appealing strategy.
Trump’s tariffs on Chinese imports are stoking market volatility, but there are also longer-term implications for economic growth in the US and beyond.