As advisors positioned their portfolios for a low-growth environment and prepared for rising U.S. interest rates, many increased allocations to fixed income plus sector investments. At the same time, these allocations may have introduced unintended investment risks to client portfolios. Find out how to strike the optimal balance between income and stability in your client’s fixed income allocation with our first insight:
- Advisors may be unaware… Increased exposure to plus sectors of fixed income transformed the risk profile of advisors’ model portfolios
- … of a changing risk profile… This meant more yield and income opportunities but at a price.
- … and higher equity correlation. Greater equity-type risk.
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