323. Navigating inflation and interest rates

Richard ‘Dickie’ Hodges, manager of the Nomura Global Dynamic Bond fund, gives his predictions on UK, US and European inflation and potential interest rate cuts. He emphasises the current opportunities and strategies for generating positive returns in the fund, highlighting deeply subordinated bank debt (AT1s) as one of the best-performing asset classes. He also outlines a hedging strategy to protect against a potential hard landing and political uncertainties, which helps mitigate risks without significantly reducing income. We finish with Dickie’s views for the second half of 2024.What’s covered in this episode: What’s your view on inflation and rates?How does that impact government bonds?Three potential scenarios for economiesThe true flexibly of this fundAppeal of South Africa local currency bondsWhere do opportunities lay today?What might we expect for the second half of 2024? More about the fund: Nomura Global Dynamic Bond fund is an unconstrained strategic bond fund, with a focus on total returns. The manager invests in the entire range of bond sectors including government bonds, corporate bonds, emerging market bonds and inflation-linked bonds. We believe this fund offers an excellent option for all market conditions in terms of both yield and capital return.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.