LOM Fixed Income Maintains Five Star Rating
Despite a sharp fixed income market selloff accompanied by a Fed rate hike during the last quarter of 2016, the LOM Fixed Income Fund managed to finish another strong year, outperforming its stated benchmark and other competitor funds with similar mandates.
Bryan Dooley, Senior Portfolio Manager and General Manager of LOM Asset Management said: “For the 2016 year as a whole the Fixed Income Fund delivered a 2.91% net total return for investors which exceeded the return on its stated benchmark by a net 1.31%.
“The Fixed Income Fund also compares favourably against local competitors and Morningstar rates the fund at five out of five stars over the past three years.”
He also said: “Interest rates rose sharply during the weeks immediately after the American election in early November as investors began to anticipate a U.S. reflation scenario initiated by the incoming Republican Party administration.
“While the jury is still out as to whether Washington’s new leaders will be able to resurrect economic growth and create an inflationary tailwind, markets are already anticipating a shift towards a new economic paradigm which could look quite different from what has occurred over the past decade.
“Going forward, we expect bond investing to be much more challenging than during the past several years of highly accommodative central bank policy. Active investment management will be the key to successfully navigating these markets.”
LOM Group CEO, Scott Lines said “We are happy to have one of our flagship funds show strong performance during a volatile period in the markets.
“Receiving the highest rating by independent rating agency Morningstar, Inc. demonstrates our commitment to offering best-in-class strategies across a wide spectrum of client risk profiles.”
