For financial professionals in Uruguay

10 reasons for active management in fixed income

Apr 1, 2022

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.

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.

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. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

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.

 

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Apr 1, 2022