The duration deliberation

Key takeaways: 

Duration strategy

• For the last two and a half years, the strategy has been underweight in duration across all of our outcome driven (OD) strategies, due to changing inflation leading to global interest rate hikes

Shift in strategy

• The steepening yield curve has promoted us to increase duration across all of our OD funds, including short-dated funds to take advantage of higher four and five-year yields

Future opportunities

• The strategy remains cautious, but if spreads widen this year, it will provide a good entry point to add credit spread duration back into our portfolios