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The benefit of bonds in times like these

17 Mar 2020

Our portfolios are beautifully diversified with over 9,000+ underlying securities. Within portfolios we have a mixture of shares and bonds which act as two sides of a see-saw. Typically, when shares are doing well, bonds tend to sit at the bottom of the see-saw. The opposite is also true, when shares are going down in value, bonds typically increase in value.

We are seeing bonds behave in this positive fashion at present as the world tries to figure out how to handle this Covid-19 virus. At some point, if bonds become too expensive we will sell them down and rebalance into the undervalued share sectors. This rebalancing exercise will add value to your portfolio when the worm eventually turns and shares are once again flavour of the month.

If you have a query on the bonds in your portfolio, or any other investment matter, then please give us a call. We’re here to help.