A better way to generate beta?

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We believe investors can now reliably extract beta from less liquid fixed income markets where traditional active and passive strategies have struggled to match the index.

Traditional managers have struggled to extract beta from less liquid markets. Traditional active, smart beta and passive strategies have struggled to deliver market returns in higher yielding and less liquid fixed income markets such as high yield credit, fallen angels and hard currency emerging market debt, with most historically underperforming indices after fees.

We believe there are three key reasons for this endemic underperformance, all of which relate to low market liquidity.

907024 Exp: 23 September 2022

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