Andrew Morris: Can fixed income be defensive amid rising rates?

A very common question we have been receiving from advisers in recent months has focused on whether fixed income is still suitable as the ‘defensive ballast' of a multi-asset portfolio. Following nearly a decade of historically low interest rates, many now fear a bear market in fixed income. This is a huge issue for multi-asset managers, as funds designed for lower-risk investors have the vast majority of their portfolios invested in the asset class.  The catalyst for this belief has been the wide acknowledgement we are now entering a monetary tightening cycle. Following ten years of ...