Fidelity: Three ways to manage duration risk in a multi-asset portfolio

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Fidelity's multi-asset manager Eugene Philalithis reveals his three strategies for protecting portfolios from duration risk, ahead of rate rises in the UK and US.

While recent Fed action has led markets to push out their expectations for the first upward move in interest rates since 2006, many investors remain nervous about duration risk. How do we think about this risk in our multi-asset portfolios? This is an important question for our fixed income exposure, but also for the role duration plays in the multi-asset income portfolios that I run. Being diversified across asset classes allows us to tactically play duration in different ways. There are three broad strategies to managing duration: actively managing exposure, recognising where it can...

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