Fixed-income assets, largely bonds, are an essential component of a balanced portfolio, with the rule of thumb that investors should hold 40% in fixed income for the steady returns and the remaining 60% in stocks for potential capital growth.
The ongoing Covid-19 pandemic outbreak still poses some headwind risk on top of the low-interest rate environment.
Despite this, there are still opportunities that investors could leverage in the fixed income space, particularly in Singapore-dollar denominated bonds, says Alvin Ong, Manulife Investment Management (MIM) director and portfolio manager of fixed income in Singapore.
