Uncovering Portfolio Opportunities Worldwide
Portfolio Manager Eileen Riley discusses how she and her team take a global approach to value discovery
- The team believes there is a more attractive return profile for equities versus fixed income today. Specifically, the large size of negative yield in government debt globally is something the team is looking to avoid.
- All equity holdings have to meet three alpha drivers: quality, intrinsic value growth, and valuation.
- Equity holdings example: Real estate company is capitalizing on the outsourcing trend in property management to create a recurring revenue stream.
- Fixed income allocation is focused on select opportunities.
- Overall, this global allocation strategy looks to deliver equity-like returns with lower volatility for clients over time.
Bonds may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Below investment grade bonds may be subject to greater risks (including the risk of default) than other fixed income securities.