Advisers should spend more time understanding fixed interest investments
Daintree Capital portfolio manager Justin Tyler says "if you want yield, you need to know where is it coming from. Advisers are busy and tend to spend more time on the riskier parts of client portfolios, because this is where volatility will emanate from.
Advisers at the recent Meet the Managers where asked "how much additional return would you need, compared to a term deposit, to consider investing in a fixed income fund?"
Thirty eight percent of respondents said a fund would need to be delivering an additional 100 basis points.
Organiser Clayton Coplestone and Tyler were surprised at that result especially if it was at commensurate risk to a term deposit.
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