Despite fixed income being a cornerstone of many investors' portfolios, there are relatively few scientific articles on bond strategies compared to equity strategies. That's why we are excited to share our latest article published in Absolut|report, which explores key success factors in active bond management theoretically and empirically.
In the article, Dr. Marc-André Göricke and Dr. Jochen Kleeberg provide new empirical insights based on 227 institutional “US Core Plus” composites over a 22-year time span (2000 – 2021).
Key insights are:
• Strategy capacity is crucial for successful active fixed income mandates, but resources assigned to a strategy play an important role too.
• Managers who apply many small bets are particularly successful, not only according to the fundamental law of active management but also according to our empirical results.
• Historical active returns prove to be negatively correlated to the active returns in the following period. Thus, the common behaviour of the industry to pick the winners of the past is not a wise decision. Instead, investors should focus on other fundamental characteristics which are outlined in the article.
Want to learn more about these and other success factors in active bond management? Have a look at our article and share your thoughts!
Detail - Absolut Research (absolut-research.de)
Please feel free to call or write us and we will get back to you in a timely manner.
