The traditional model of using a mix of shares and bonds to minimize risk in a portfolio has broken down due to long term low interest rates and investors should be looking at alternative sources for fixed income returns within the wider bond universe, according to TCP.

Tanarra Credit Partners managing director Graham Lees said the Australian investment market differed from those overseas in that fixed income investments were often overlooked in favour of shares, property and cash and this investor behaviour has created problems.

“This focus means that people also overlook the volatility that occurs in those markets and now fixed income is back in focus for many people,” Lees told SMS Trustee News.

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