Some opting for ‘better’ European options
12 April 2024
•
4 min read
Multi-asset managers are divided on whether US Treasuries remain the first port of call for sovereign bonds, with some opting for European fixed income, arguing the lack of urgency to increase household spending in the US makes other options more appealing.
The Treasury market has historically played an important role in multi-asset portfolios as a diversifier to equities over and above its fundamental return prospects.
“With listed equities providing the main growth engine, any asset with a good track record of hedging stock market downturns merits special attention,” argued Sunil Krishnan, head of multi-asset funds at Aviva Investors.
However, he noted that “US sovereigns struggled alongside other bonds in the reflation of 2021-3, even during flight-to-safety periods such as Q1 2022”.
Deep Dive: Copper supply squeeze offers potenti…
To continue reading this article…
Join Investment Week for free
Signup and gain exclusive members-only insights – all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes