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How to profit from negative yielding markets

24 Mar 17

Bondholders have been penalised by traditional benchmarks that have failed to grasp the current reality of low and negative yields, First State Investment’s Jamie Grant has said.

Bondholders have been penalised by traditional benchmarks that have failed to grasp the current reality of low and negative yields, First State Investment’s Jamie Grant has said.

“The outcome of this analysis ultimately reallocates index weighting away from the low growth, heavily indebted regions of the worlds, and favours those countries with higher growth and positive demographic outlook.

“Unsurprisingly, this research has created a benchmark with a heavy focus on what remains the growth engines of the world, the Americas and Asia, whilst delivering a better yielding benchmark with a similar duration.”

Pages: Page 1, Page 2

Tags: Bonds | First State | Japan

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International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.