Why a low-rate world means rethinking retirement
Planning for retirement is tough at the best of times but volatile investment markets and historically low interest rates suggest retirees are navigating particularly tricky terrain. Darren Langer, Head of Australian Fixed Income at Nikko AM, believes cash rates are likely to remain low or in negative territory in various global economies for some time, and with the expectation that asset class returns will be lower than in the past, bond funds look well placed to capitalise on this environment.
“We believe that a conservative, low-risk approach to fixed income has many benefits for investors who traditionally invested in cash and term deposits.”
In the below Fund in Focus, Darren outlines some of the unique challenges that investors are facing in the current environment and why fixed income is key to solving some of this issues.
- Protecting capital in times of uncertainty.
- What are the alternatives to term deposits for generating income in retirement?
- Are these alternatives risky and how can investors manage this risk?
- How can investors deal with high volatility?
Consistent, positive returns with no surprises
For further information on the Nikko AM Australian Bond Fund, please visit our website, or fill in the contact form below.
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