Changes in the regulatory regime with the introduction of Ucits III has brought new opportunities to...
Changes in the regulatory regime with the introduction of Ucits III has brought new opportunities to the market for fixed interest.
According to Iain Lindsay, managing director and senior portfolio manager of global fixed income and currency at Goldman Sachs, Ucits III has changed the fixed income landscape and how a bond portfolio is managed.
He said: "There has been a dramatic change in portfolio management where we are now attempting to get much more value out of money. This is quite a change considering it was once considered a pretty safe asset class.
"The key to this is the change in the regulatory regime. Moving into Ucits III has changed how a bond portfolio is managed. It has expanded the universe by offering greater investment choice and through this there are greater diversification opportunities.
"However, we do have to be a lot more thoughtful and controlled about diversification.
"Ucits III has modernised fixed income investing. As the door opens from regulation, we can really add value to a bond portfolio without compromising risk."
However, Lindsay stressed it was important to have the manger skill to make it all work. "It is the manager's job to give investors more," he added.
Ucits III has benefited the fixed interest market
Greater diversification benefits
Manager skill vital to make a bond portfolio work
Cautious, Balanced & Dynamic Growth
Cowardly, boring or sensible
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