Want to Optimize Your Fixed Income Strategy?

The debate between active and index investing has evolved. Now, the key question is whether active, index or systematic investing is more effective for specific fixed-income sectors and the asset class as a whole. Our latest paper, The Role of Active, Index and Systematic Investing in Fixed Income Portfolios.

In the world of investment management, the active versus indexed debate is a longstanding one. As the discussion has evolved over time, a new question has emerged as to whether an active, indexed, or systematic approach makes more sense for certain fixed income sectors, and for the asset class as a whole.

For a long time, active strategies dominated the entire investment landscape. As indexing options developed, investors came to value the efficiency and lower costs inherent in such strategies. More recently, systematic investing has emerged as a powerful approach, leveraging data and algorithms to optimize investment decisions. As a result, bond investors can benefit from the experience and skills of investment professionals, as well as the rigor and breadth of systematic investing strategies.

As we focus attention in this piece on fixed income investing styles, there are two points worth emphasizing at the outset:

• Market expertise is required for active, indexed, and systematic fixed income investing.
• Asset managers that possess expertise across a breadth of capabilities and investment styles can most effectively deliver solutions to investors.