Asset managers need to do a better job of managing expectations, says Catherine Payne, vice-president and portfolio manager at Fiera Capital. Speaking at AIMA Canada’s ‘How to Generate Yield’ session, she said clients are looking for ‘x’ per cent as their return, but she can only give them what is coming out of the market. This makes it about managing expectations and finding out if they want yield or preservation of capital going forward. As well, as they get older and have a shorter time horizon to save for retirement, they want to preserve capital with some return. The other consideration is the low interest rate environment is not going to last forever so investors have to start preparing for increases in these rates.
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