News
12 Apr 2024 - Performance Report: Quay Global Real Estate Fund (Unhedged)
[Current Manager Report if available]
12 Apr 2024 - Performance Report: Glenmore Australian Equities Fund
[Current Manager Report if available]
12 Apr 2024 - Why reframing fixed income is key to portfolio stability
Why reframing fixed income is key to portfolio stability Yarra Capital Management March 2024 Conventional portfolio construction theory positions equities as the primary driver of returns, while fixed income typically takes a back seat as a low-return and low-risk asset class. However, this perspective often overlooks a crucial aspect of fixed income: its role in dampening portfolio volatility. Protecting portfolios through the stormContrary to the notion that fixed income should exhibit a negative correlation to equities, suggesting that when one goes up, the other goes down, in our view, it's more accurate to view fixed income as a stabilising force within a portfolio. Instead of focusing solely on returns, investors should also consider the invaluable function of fixed income can have in reducing overall portfolio volatility and improving risk-adjusted returns. Historically, equities have exhibited higher volatility, compared to bonds, reflecting the relatively stable income streams of bonds and their fixed coupon payments. While bonds can still experience price fluctuations, especially in response to changes in interest rates or credit risk, these movements are generally less pronounced compared to equities. Even small bond allocations in a portfolio can help dampen portfolio volatility for a small reduction in overall return and improving risk adjusted returns (Sharpe ratio). Chart 1: Historical risk adjusted return comparison of bonds and equities
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Funds operated by this manager: Yarra Australian Equities Fund, Yarra Emerging Leaders Fund, Yarra Enhanced Income Fund, Yarra Income Plus Fund |
11 Apr 2024 - Performance Report: 4D Global Infrastructure Fund (Unhedged)
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11 Apr 2024 - Performance Report: DS Capital Growth Fund
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11 Apr 2024 - Performance Report: ASCF High Yield Fund
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10 Apr 2024 - Performance Report: Bennelong Concentrated Australian Equities Fund
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10 Apr 2024 - Performance Report: Delft Partners Global High Conviction Strategy
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9 Apr 2024 - Performance Report: Bennelong Australian Equities Fund
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9 Apr 2024 - Performance Report: Rixon Income Fund
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