a new paradigm in fixed-income portfolios.

The world has changed and investors need to rethink fixed income investing.

There are three main challenges facing investors:

  1. Widespread low or negative yields in key developed markets outside the US
  2. Increased market risk associated with, among other factors, longer duration in portfolios
  3. Fractured liquidity – unconventional central bank policies and tighter regulation has led to a lack of liquidity across fixed income markets.

We believe embracing a new paradigm in fixed income markets involves adopting a strategy built around trading less and building safer portfolios focused on quality. Here we explain why investors should consider fundamentally-driven portfolio construction in a low turnover framework.