Investments / General

Schroders CIO Lens Q4 2023: Asset allocation views

In the latest quarterly Schroders CIO Lens Q4 2023, Schroders shares its view on various global asset classes.

What’s going on in the US bond market?

Like clients in a candy store; choosing from 1805 CIS funds

Helping your clients to choose the most suitable Collective Investments Schemes (CIS) unit trusts for their discretionary investment or living annuity portfolios is a bit like guiding a youngster through Cleveland’s Sweetie Candy Company, which Google reckons is the world’s largest candy store by floor size. Like kids in a candy store, their eyes-wide-open, overpowered clients risk falling victim to decision paralysis as they take in the 1805 CIS unit trusts on offer to local investors, midyear 2023. And that’s before you give them sight of the 643 foreign currency denominated funds and 219 hedge funds stacked up in the back room.

Balancing risk and return on S.A. government bonds

Current market sentiment towards SA government bonds is especially negative. Both local and foreign investors are becoming increasingly concerned about the debt hangover effects and higher borrowing costs arising from continued fiscal slippage on an already bloated balance sheet.