This month's asset allocation update includes a number of upgrades in the government bond space, as well as upgrades to the US dollar and Japanese yen.
Market turbulence has produced attractive income opportunities in Asian corporate bonds against a still positive economic backdrop in the region.
After the disappointment of 2018, Chief Executive Peter Harrison rounds up the factors our fund managers think could lead to a brighter year ahead.
We expect that the US dollar’s strength should fade in 2019 as the pace of US rate hikes begins to slow, which will ease the pressure on Asian bonds next year.
Valuations have become more attractive and fundamentals are reasonably positive. But a period of transition looms, with central bank support being withdrawn and government bonds now offering a more compelling alternative than they have in many years.