Portfolio manager Michael Plage discusses opportunities for fixed income at this stage of the pandemic. Michael’s quantitative team regularly runs scenarios that determine how sensitive and exposed his portfolios are in relation to changes in rates. Currently his portfolios have very low sensitivity to changes in rates. We are in a low-rate environment, which Michael believes makes it a great time for active management, especially in fixed income, because delivering diversification and yield has become challenging. With the world’s population aging, he believes the hunt for yield and income paying assets will continue. Looking forward to the U.S. election, Michael notes that he and his team are not positioning portfolios for a specific outcome; rather, they are trying to identify the sectors that might see the most impact.
Recorded on August 14, 2020.