Week 174 – July 12th – Yes not a good year

This was feedback I had from the market analyst.

“2022 was a dreadful year for the fixed interest market as it suffered record breaking losses caused by the sky rocketing interest rates. We were meaningfully underweight but with hindsight should have been even more aggressive in this position. Now with interest rates appearing to be nearing what is expected to be their peaks we have moved towards a more benchmark neutral position. This repositioning of our asset allocation is behind the purchase of the additional units of Robeco.

Robeco has been our best performing fixed interest collectives’ year to date, performing relatively well because it has been positioned to be less sensitive to increasing interest rates (duration).”

I’ll be honest, I’m still not sure about Robeco, happy to be proven wrong.

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