Is Your Cash Still Stuck in Park?
With inflation steadily falling and central banks poised to cut interest rates in 2024, the changing investment landscape is sending a clear message to investors and advisors alike: it's time to shift your cash into high gear.
The opportunity cost of locking up cash in guaranteed investments and high-interest savings accounts continues to rise.
With the potential for increased bond market volatility, Dynamic continues to believe that legitimately active fixed income investing is poised to provide attractive risk adjusted returns when compared to GICs & HISAs, while better meeting investor goals, like tax awareness, income generation and interest-rate hedging.
Because when it comes to investing, it's hard to reach your destination when your hard-earned cash is stuck in park.
Impact of Rate Cuts/Falling Rates
Government Bonds vs GIC/HISA
Source: 1832 Asset Management L.P. For illustrative purposes only.
Bond prices have an inverse relationship with interest rates: when interest rates fall, bond prices rise; and vice versa. The graphic above shows the estimated 12-month total returns based on a range of interest rate movements. Note that the 5- and 10-year investment grade bonds appreciate significantly as interest rates fall, while the value of the GIC & HISA stay relatively the same. For illustrative purposes only.
The Dynamic Fixed Income Advantage: Legitimately Active Management®
Dynamic's Fixed-Income Funds are actively managed and can respond to changing market conditions in order to increase opportunities and minimize risk.
Unlike passive bond fund managers, Dynamic's active fixed income managers have the flexibility to:
Take advantage of changing interest rates by tactically adjusting duration and yield curve positioning.
Manage credit risk by limiting exposure to heavily indebted issuers.
Adjust security selection and sector weightings to potentially deliver better risk-adjusted returns.
Dynamic Funds: A World of Fixed Income Opportunity
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At Dynamic Funds, we believe in the power of professional advice.
Speak to a financial advisor today about building a long-term plan to more effectively reach your financial goals.
