The Great Re-rotation
Many financial commentators have predicted that investors will rotate out of bonds into equities due to low bond yields. Expectations that bond yields will rise means that many believe the Great Rotation will continue as investors see the value of their bond portfolios fall. We believe the opposite could be true where large institutions may want to increase their allocations to their fi xed income portfolios, particularly defi ned benefi t pension plans, as they grapple with changes to regulation and a desire to reduce funding level volatility.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.