Making hay while the rain pours

BY VIMAL GOR, HEAD OF INCOME AND FIXED INTEREST, BT INVESTMENT MANAGEMENT. To not put too fine a point on it, we develop and manage fixed-income funds to help protect diversified portfolios from the full extent of market losses when the proverbial is hitting the fan. We find that our way of managing money generally polarises people and it might not always work perfectly, being the safest house on the street, but in the midst of the current market environment it has been effective. For the past year we’ve been very vocal about constructing the portfolios around four central investment themes: 1. The global economic growth pulse is now slowing with all areas contributing to the weakness, including the US. 2. The emerging market dislocation, that we have been expecting for some time, is now firmly in train and it will worsen in the short to medium-term. 3. Liquidity is mispriced and volatility is too low and will rise soon 4. Risk assets are due for a period of consolidation/weakness. MORE. (VIEW LINK)