Fixed interest a fine balance for advisers
He said there were signs that clients were starting to look for more growth than income, but a balanced portfolio would still require 50% fixed interest.
Global fixed interest products were outperforming New Zealand fixed interest in bond funds, he said, even though global funds were longer duration, which usually was not what investors wanted in a rising interest rate environment.
Barton said: “We’ve reduced our exposure to bond funds and increased our exposure to term deposits that are short duration because we don’t want to lose capital.”
That was a complete reversal of the approach that would have been taken as recently as a year ago, he said.
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