Wednesday 5 February 2014

Regional investors steering away from bonds in fixed-income assets | The National

Regional investors steering away from bonds in fixed-income assets | The National:



"After a stellar year for regional equity markets, many Middle East investors are increasingly showing preference for fixed-income asset management products that do not rely on bonds alone, Schroders Investment Management said.



Iain Cunningham, one of the managers of Schroder ISF Global Multi-Asset Income fund, who met clients in the UAE over the past week, said that investors here want sustainable income from such funds because of concern that if interest rates rise, bond prices will be hurt.



“The fund was designed to create solutions for investors who have been struggling to generate income in a low-yield environment,” said Mr Cunningham. “And due to that challenge, we’ve seen the fund grow from zero assets in April 2012 to just over US$4 billion. We can go across regions and across sectors. The fund was designed to deliver a 5 per cent payout to investors on annualised basis with focus on sustainability of income.”"



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