GCC’s fixed income market set to grow By Saudi Gazette Staff

Tue, 05 May 2009 00:09:42 +0100

GCC’s fixed income market set to grow

By Saudi Gazette Staff

Highlights from this article

We now believe the time and depth of the market has changed to a point where Fixed Income funds will be at the forefront of institutional demand,” he added.

The fact that fixed income assets guarantee a coupon, or interest bearing element, and the return of the original investment, as long as the bond does not default, as well as the more stable liquidity of the market, makes this asset class increasingly attractive to investors seeking exposure to a relatively more secure investment opportunity,” Popat added.

Fixed Income Looking Good

Sun, 03 May 2009 22:28:49 +0100

Below are highlights from ( Wall Street's World turned upside down ) by By Jeff Benjamin)

Stock mutual funds, as a percentage of U.S. mutual fund assets, dropped to 40% in March from 55% a year earlier, according to Strategic Insight Mutual Fund Research and Consulting LLC in New York. Over the same period, money market fund assets climbed to 41%, from 30%, and assets in fixed-income strategies jumped to 19%, from 15%.

“Absolute return is going to be big, and right now those strategies make up less than 5% of the mutual fund space,” said Robert Reynolds, president and chief executive of Putnam Investments.

Early this year, the Boston-based mutual fund company, which has $100 billion in assets, launched a series of absolute-return funds de-signed to provide returns above those of Treasury bills by 1%, 3%, 5% and 7%, depending on the fund.

In this new era of fear-driven investing, corporate bonds are expected to do well in the short term. Right now, you don't need to be in equities when you can get equity-like returns from fixed income,” said Tom Sowanick, chief investment officer for Clearbrook Financial LLC, a Princeton, N.J., firm with $22 billion under management.

Investors, and financial advisers, are far less willing to put money into products that can't be explained —and understood — easily and quickly.

“Yield will be the avenue that brings people back, because right now they want income and stability,” he said. “Expect more products that appeal to the income side and are able to limit downside.”

For example, the idea of sticking with a diversified allocation of stocks and bonds — the long-time mantra of much of the financial advice industry — meant a 50% loss for anyone holding the S&P 500 index over the past year.

fixed-income-professional

GCC’s fixed income market set to grow By Saudi Gazette Staff

Fixed Income Looking Good