Flexibility to invest globally across issuers, structures, regions and risks can offer access to opportunities and strategies that can boost return potential without raising overall portfolio risk.
Emerging markets can offer a premium – alongside solid fundamentals
Complexity premia can boost spreads without lowering credit quality
Active bond managers have wide scope to outperform
Global fixed income offers wide-ranging return potential
In bond markets, structural inefficiencies can give active managers extensive scope to outperform passive funds.
Some instruments such as asset-backed securities can offer higher yields than corporate bonds with comparable credit ratings.
Relative to developed markets, investors can find attractive yields in emerging market debt – even with broadly attractive fundamentals.
