Markets in “fragile equilibrium”, says Columbia Threadneedle

Columbia Threadneedle Investments’ Global Multi Asset Income Fund is holding more fixed income than equities for the first time in five years, in a sign reflecting how other similar funds are adopting a cautious stance as central banks work to avoid recession.

Maya Bhandari, multi-asset portfolio manager at the firm, tells Funds Europe’s October magazine issue (coming out this week) that markets are “in fragile equilibrium”. Central banks are easing policy enough to avert a recession, she notes, “but are not able to raise inflation such that interest rates might ultimately need to rise again”.

Although bonds and equities have delivered punchy year-to-date returns, fund managers see factors such as trade wars contributing to uncertainty.

“As such, we have been turning more cautious over the course of the year, lowering equity allocations in favour of low-duration European corporate credit over the second and third quarters and reducing portfolio volatility,” says Bhandari.

©2019 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST