3 questions on fixed income for 3Q 2019
Our answers for three bond questions investors may ask.
Non-traditional fixed income sectors such as asset-backed securities (ABS) provide additional sources of income. From auto loans to residential mortgages, ABS are expected to continue benefitting from robust US consumer confidence.
US high yield bonds demonstrated resilience last year, despite a backdrop of rising rates and emerging market turmoil. This may partly be due to improving credit fundamentals. US companies are still expected to deliver double-digit earnings growth, and default rates are expected to remain low.
Rich or cheap valuation on:
Investing opportunistically across the bond universe without benchmark constraints, the fund managers can take advantage of the flexibility in managing the portfolio.
Multiple debt markets and sectors
The Fund invests in a wide range of fixed income securities, covering not only traditional but also non-traditional fixed income, allowing for a wider source of income.
Focusing on income
The fund managers manage the income of the Fund to help minimise fluctuations in dividend payments of its monthly distribution share classes*.
*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to important information 3.