Harvesting Yields
Reaping the rewards
Funds Selection Team10 May 2024
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Overview

As economies transition towards normalcy, global inflationary pressures are converging towards central banks’ target ranges. Amidst this backdrop, policymakers advocate for a cautious approach, with Fed Chair Powell hinting that achieving the 2% inflation target may require additional time. With policymakers widely expected to hold rates steady, debate surrounding Federal Reserve action has shifted from how many Fed cuts to whether cuts will occur at all in 2024.

In such an environment, investors can consider gaining exposure to our high-quality fixed income fund range to stay in the sweet spot of 3 to 5 years duration and be well-positioned to capture opportunities while managing risks effectively.

So, what would be our top fund ideas within these spaces?

DBS CIO Liquid+
What are the key characteristics of this fund?

  • High credit quality and low duration portfolio for clients to seek shelter in a highly resilient portfolio while yielding more than cash.
  • Attractive yield >4% despite the relatively low risk profile of the fund.
  • Focuses on up-in-credit-quality selection, with only 5% allocation to high yield bonds currently to reduce credit volatility.

Schroder Global Credit Income +++
What are the key characteristics of this fund?

  • Global & multi-sector credit fund with a dynamic credit allocation for drawdown mitigation
  • Draws on Schroders’ global credit platform, in-depth credit research expertise and bespoke quantitative techniques
  • Differentiated themes-based approach to credit selection, fund offers a credible option for portfolio diversification

RobecoSAM SDG Credit Income ++++
What are the key characteristics of this fund?

  • Global credit portfolio with flexible allocation across Investment Grade, High Yield and Emerging market corporate credit.
  • Fund aims to optimize yield and income within a target volatility range of 2- 6%
  • Managed by Robeco, which has been at the forefront of sustainable investing. The fund is also aligned to the UN Sustainable Development Goals

PIMCO GIS Income ++++
What are the key characteristics of this fund?

  • Stable and sustainable Income with a flexible Multi-Sector Approach for Diversified sources of Income
  • Emphasis on Capital Preservation
  • PIMCO is a renowned Fixed Income Specialist with a strong Proven Track Record
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