RWC Diversified Return Fund manager Clark Fenton explains how he positioned the portfolio as the credit cycle moved from an over-extended leverage phase in 2018 to mass deleveraging in 2020

The coronavirus pandemic has brought about a new investment landscape in which some companies and sectors have fared better than others. Significant market dislocations have also created potential opportunities in the higher quality areas of the credit spectrum.

While a near-term mechanical bounce in economic activity in response to the lifting or easing of lockdown measures looks likely, we expect the subsequent climb up to be long and arduous.

Incisive Works speaks to Tessa Inglis to find out what it takes

Amid the coronavirus pandemic, the digitization of the economy gathers steam.

Investors that traditionally relied on fixed income for diversification were left bruised in Q1 as government bonds buckled under volatility. Is this a sign fixed income assets are no longer useful in a diversified portfolio?

High-yield bonds were particularly affected during the March sell-off, and the asset class is still trading at attractive valuations. At a time when listed companies are cutting dividends, we believe that high yield’s income-generating qualities means that it has the potential to deliver superior risk-adjusted returns earlier on in the market’s recovery.

Defining potential winners and losers—near and longer term.