Active Global Fixed Income Structure
The same key issues that need to be addressed for global equities should be addressed for fixed income. The most important issues for fixed income are:
What Is Style?
Fixed income fund managers add value to the portfolios they manage by using one or more of a series of strategies that are available to them. The strategies are listed next.
Fixed income managers will rely on one or all of these strategies, and this is what is meant by investment “styles” in fixed income. However, a single investment manager typically has a bias toward one style. No single style will outperform others consistently, and performance of different styles is difficult to predict in advance.
One approach is to diversify across the styles. This controls the impact of style bets and improves consistency ...