Rathbones' Coombs: Multi-asset Funds 'called It Right' But Unable To Combat Hardship

clock

• 3 min read

David Coombs, head of multi-asset at Rathbones Unit Trust Management
Image:

David Coombs, head of multi-asset at Rathbones Unit Trust Management

The falling bond market across both credit and sovereigns has provided a recessionary hedge as the outlook for growth grows ever bleaker, although multi-asset funds are still struggling to tackle the difficult investment environment.

David Coombs, head of multi-asset at Rathbones Unit Management Trust and manager of the Rathbone Multi-Asset Strategic Growth portfolio, argued that conventional sovereign bonds are a good recessionary hedge for investors. "As yields rose in the second quarter, we added to our bond portfolio, selling off some index-linked assets as US treasuries rose to 3.5%, and subsequently buying into conventional 10-year US treasury notes," he said. "We have been in the recession camp for nine months now and have positioned best we can but still have negative numbers on the portfolio level year to...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week

member?

Login

RECENT NEWS

ETF Market Update: Assessing The Impact Of Receding US Rate Cut Expectations

The ETF market has been subject to significant shifts in recent months, with one of the key drivers being the evolving e... Read more

Market Response: Understanding The Drop In Arm Shares

In the fast-paced world of technology, market reactions can serve as barometers of industry health and company performan... Read more

Market Watch: Investor Sentiment Points To Steady Rates As BoE Convenes

As the Bank of England's Monetary Policy Committee (MPC) prepares to convene, investor sentiment plays a pivotal role in... Read more

The Department Of Justice Vs. Google: A Clash Over Market Power

The culmination of the high-profile antitrust trial between Google and the Department of Justice marks a significant mil... Read more

Mitigating Risks In The Bond Market: Strategies For Uncertain Times

In today's volatile bond market, characterized by liquidity concerns and rising interest rates, effective risk managemen... Read more

UK High Street Banks Rake In £9.2 Billion In Interest On BoE Reserves: A Closer Look

In the intricate world of finance, where numbers often tell compelling stories, one recent figure stands out: £9.2 bill... Read more