10/08/2014 - Unconstrained Fixed Income Becoming Popular In The Age of Financial Repression
Unconstrained bond strategies are becoming more popular, especially now that Bill Gross* is joining Janus to start a fund in this area .. one money manager: “In an era of financial repression and manipulated government bond rates, particularly in the developed markets, traditional market benchmarks currently offer low yields and long duration .. Unconstrained investing allows investors to seek the desirable characteristics of fixed-income — income, diversification and risk management — and avoid the undesirable — longer duration and high correlation to government rates .. Unconstrained strategies are not all the same and many of them are not even comparable .. Investors need to fully understand the risk and return objectives for a particular strategy and must evaluate each strategy based on its unique approach and characteristics.”
