Category

Of Interest - Fixed Interest / Credit

Company

Schroders

Research Paper

While investors broadly understand the role of equities and traditional vanilla bonds in a portfolio, they rarely understand the role that can be played by “non-core” assets. By not using the full investment opportunity set, they are ignoring a range of opportunities across the capital structure that have a legitimate role to play in a well constructed portfolio. This research paper explores these opportunities starting with a review of the capital structure. It looks at each of the parts and identifies some of the key investment characteristics, before asking “why” invest and discussing some of the portfolio construction considerations. Lastly, it explores the implementation of these ideas using a comparison between traditional and unconstrained balanced funds as an example.

Presentation

Mihkel Kase, Fund Manager, Fixed Income, Schroders