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For wholesale investors in Australia

10 reasons for active management in fixed income

We believe that active management has an important role to play in investment portfolios. Here, we highlight 10 reasons, each supported by a chart, to demonstrate why we believe active management can be desirable when investing in fixed income.

Apr 1, 2022

Key takeaways:

  • Time mismatches that can potentially favour the active investor.
  • The potential impact of crowded trades around index changes.
  • The importance of the new issues market and the idiosyncrasies of the over-the-counter (OTC) market.

The first five reasons explore some of the inherent drawbacks that can potentially exist within indices and by extension portfolios that passively track an index. The second five reasons look at some of the distinct alpha opportunities that can exist within fixed income markets.

The document covers topics such as:

  • Time mismatches that can potentially favour the active investor.
  • The potential impact of crowded trades around index changes.
  • The importance of the new issues market and the idiosyncrasies of the over-the-counter (OTC) market.

To discover all 10 reasons, click on the link below.

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This information is issued by Janus Henderson Investors (Australia) Institutional Funds Management Limited (AFSL 444266, ABN 16 165 119 531). The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

 

Whilst Janus Henderson Investors (Australia) Institutional Funds Management Limited believe that the information is correct at the date of this document, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson Investors (Australia) Institutional Funds Management Limited to any end users for any action taken on the basis of this information. All opinions and estimates in this information are subject to change without notice and are the views of the author at the time of publication. Janus Henderson Investors (Australia) Institutional Funds Management Limited is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect.

Apr 1, 2022

Key takeaways:

  • Time mismatches that can potentially favour the active investor.
  • The potential impact of crowded trades around index changes.
  • The importance of the new issues market and the idiosyncrasies of the over-the-counter (OTC) market.