AMP Drops Bonds from Some Pension Funds, Calling Them an Ineffective Hedge
AMP Ltd., one of Australia's leading asset managers, has removed sovereign bonds from some of its retirement funds, arguing that government debt no longer provides the diversification that has balanced stock market volatility for decades. The move marks a significant shift in asset allocation strategy for Australian pension savers. AMP joins a growing number of fund managers reconsidering the traditional stock-bond portfolio balance.
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