Bonds are growing in popularity again – Complex market – Expert knowledge essential –Bond funds offer good access to the market.
Anyone wanting to invest in bonds as a private individual is well advised to choose bond funds over individual bonds.
Frans de Jong, director of treasury and fixed income at Delta Lloyd explains, “The bonds market is very complex and hard to access for private investors. This problem can be avoided with bond funds.”
In view of the turbulent times on the stock markets, many investors are looking for a safe haven. Bonds have therefore quickly gained in popularity. This is not surprising given that good-quality bonds provide a high level of security and stability, while their returns can increase considerably through market rate increases and coupons. Private investors have also rediscovered bonds. But investing in bonds is an art in itself.
A complex market
Frans de Jong: “The bonds market is very complicated. A company can have many different kinds of bonds with all kinds of conditions. Specialist expertise is therefore essential if you want to make an informed choice. Expert knowledge is also necessary for government bonds, for example, there are clear differences in quality from country to country. Portfolio managers for bond funds have this expert knowledge at their disposal. Private investors can benefit from this expertise.”
Accessibility
The bonds market is not just complicated, but also hard to access for private individuals. “Institutional investors such as Delta Lloyd have good access to the market. Private individuals on the other hand are often left at a disadvantage when it comes to new issues. Furthermore, they often have to bear high transaction costs that make active investment unattractive. With an investment in a bond fund, they can avoid this problem," explains Frans de Jong.
Diversification
By investing in a bond fund, investors can target a wide variety of their bond investments in one go. Frans de Jong: “Our funds include widely varied portfolios with strongly diversified bonds. We choose these based on the expert knowledge of our fixed-interest securities team which is made up of ten specialists in company bonds, government bonds and interest rate trends. This all ensures that we have well-spread bond portfolios with a strong focus on risk management.”
What Delta Lloyd offers
The bond funds that Delta Lloyd offers to private investors in Germany are the Delta Lloyd L Bond Dollar and Delta Lloyd L Bond Euro funds. Frans de Jong: “Our team for fixed-interest securities has a wealth of experience and knowledge and is committed to its work. This is reflected in our good results.”
Read more about Delta Lloyd Asset Management and Delta Lloyd funds at: www.deltalloydassetmanagement.de
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For further information:
Martina Fassbender
Telephone: 0611 773 25 71
E-mail: martina.fassbender@deltalloyd.de