Investments / General

The impact of higher global bond yields

How worried should we be about the recent jump in developed market bond yields? Global bonds sold off after a string of central bankers, most notably the ECB’s Mario Draghi, discussed the prospects of reducing monetary stimulus at a recent conference in Sintra, Portugal. Bonds pay a fixed coupon and therefore a decline in the price increases its yield (and vice versa). There are a couple of issues to consider. Firstly, will central banks follow through with tightening policy, or are markets overreacting? Secondly, is the jump in yields large enough to derail global growth? Thirdly, what does it mean for equities? Lastly, what does it mean for South African financial markets and monetary policy, local bonds and the rand, given that we have benefited from being a high-yielding country?

Fairtree Flexible Income Plus Prescient Fund turns four and embraces engineering approach

The Fairtree Flexible Income Plus Fund (previously known as the MET Income Plus Fund) managed by Paul Crawford has reached the four-year mark and boasts a track record and net annualised gain of 9.6% since inception in 2013. This translates into a 10.16 % over the same period of time – ensuring an inflation-beating return from a low-risk investment.

Factor-based investing made smarter

Understanding your existing portfolio’s mix of factors and pure alpha, by Jason Swartz, head of portfolio solutions at Satrix.

Morningstar South Africa Ratings Analysis