The potential benefits of multi-asset over siloed fixed income management, and why we think asset allocation should be a bottom-up as much as a top-down process.
The fixed income universe is remarkably diverse and complex. In our view, the standard practice of separating fixed income allocations into several asset-class silos not only prevents investors from investing in the relative value opportunities that result from this complexity, but actively contributes to them. We believe managing fixed income under one umbrella, with high flexibility over asset allocation, can enable investors to take advantage of the market’s diversity and inefficiency.
In this paper, we present the case for a multi-asset approach to fixed income and credit, and argue in favor of allowing asset allocation to evolve primarily as a result of bottom-up credit analysis and security selection, rather than being determined solely from the top down.
You can now read the full whitepaper at the link below
