Combining the broadest possible range of assets can help income-hungry investors take advantage of the merits of diversification and optimise the risk-return mix within their portfolio.
This should be a supportive environment for emerging market (EM) currencies, as we highlighted in our most recent investment quarterly. A slow start to the year does not alter our positive view.
Accommodative central banks and strong investor demand continue to support global fixed income. How long can this positive environment endure and what could trigger a reversal in sentiment?