Reported 8 months ago
The Federal Reserve recently announced to maintain interest rates unchanged, with a possibility of one rate cut later this year. Shin Kong Investment Trust predicts the first rate cut may likely happen in September, leading to a surge in demand for their global bond fund. The fund primarily invests in BBB-rated investment grade bonds, focusing on mid-to-long-term duration, which could potentially yield capital gains as global interest rates decrease. The fund's portfolio includes mainly BBB-rated bonds (89.8%), followed by AA and A-rated bonds (17.36%), with investments mainly in the US across industries such as consumer, industrial, energy, technology, communication, and finance. Looking ahead, the fund manager believes that investing in global high-quality bond funds now will position investors well to capitalize on potential capital gains in the latter half of the year.
Source: YAHOO