Income theme seen staying hot

INCOME-yielding assets are expected to remain a hot theme in 2014, despite having posted strong returns over the past three to four years. The reason is that despite jitters over the prospect of a tapering of quantitative easing (QE) measures, interest rates are expected to remain low.

Says Anthony Ho, JP Morgan Asset Management (JPMAM) managing director: “We believe the income theme will still play out over the next couple of years. We believe that interest rates will continue to be maintained at a historically low level for a little longer. . . We think the first rate hike is still more than two years away. Investors will continue to focus on asset classes that continue to generate yields.”

Mr Ho is also client portfolio manager (asset management solutions), under the firm’s global multi-asset group.

Over the past 12 months, JPMAM has seen inflows of as much as US$10 billion into income strategies under the multi-asset group. Assets in such strategies grew from US$7 billion to US$18 billion. The firm manages a total of US$1.5 trillion globally. The multi-asset group manages about US$126 billion.


Friday, November 29th, 2013 EN

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