Fixed Income

Don’t throw the baby out with the bath water – The case for long muni bond funds

Catherine Stienstra, Senior Portfolio Manager | January 29, 2014

Why invest in long-term muni bonds? Why investors should focus on tax-free income and total return Many investors fled the muni market in 2013, as $60 billion in mutual fund redemptions attests. Particularly hard hit were longer-maturity funds, likely due to investors anticipating higher interest rates and the negative impact that would have on fixed-income

Asset allocation chart December 2013

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | January 6, 2014

Updates from previous allocations: We remain modestly overweight equities because we expect them to outperform bonds as central banks remain accommodative. Leading indicators are improving, suggesting better global growth ahead. We expect cash and fixed income to underperform and we also continue to favor absolute return strategies. We remain underweight U.S. equity allocations mainly on