The money manager also likes the Australian dollar, which has weakened versus most of its major peers in the past month. The currency is poised to climb to 70 to 75 U.S. cents in the next year as it’s undervalued and will gain some support from China’s demand for commodities, according to Lawrence.
The portfolio manager is deriving an average yield of around 3% to 6% from various funds consisting of longer-maturity Treasuries and high-yielding emerging-market debt, Lawrence said. The firm likes U.S. government debt due in 30 years, and expects yields on 10-year Treasuries to edge lower by year-end.
“There will be a soft landing for the global economy, that’s the core view that all of our portfolios are positioned for right now,” Lawrence said. “We think there’s sufficient policy stimulus with the Fed’s shift, the People’s Bank of China clearly in stimulative mode.”
This article provided by Bloomberg News.