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.
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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Janus Henderson Investors
Janus Henderson Investors
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. 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.
The information in this article does not qualify as an investment recommendation.
There is no guarantee that past trends will continue, or forecasts will be realised.
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