EN Luxembourg
Public Fixed Income

How Opportunistic Is Your Investment Grade Allocation?

November 2018 - 7 min read

Michael Freno, Head of Global Markets, discusses the benefits of 'multi-asset' or 'opportunistic' credit portfolios and the newly-launched Barings Global Investment Grade Strategies.

What are the main benefits to investors of ‘multi-asset’ or ‘opportunistic’ credit strategies?

Unlike traditional fixed income strategies, many of these strategies are benchmark-agnostic, meaning the portfolio manager is not required to adhere to a benchmark when constructing the portfolio. Freedom from the constraints of a benchmark gives portfolio managers considerable flexibility to pursue the best global relative value across asset classes, sectors and geographies.

Having this type of flexible mandate may provide several benefits:1) a single point of access to a broad range of investment opportunities; 2) enhanced portfolio diversification among various income asset classes that may perform differently under similar market conditions (FIGURE 1); 3) the potential for higher current income and better risk-adjusted returns versus traditional or single-sector strategies; and 4) the ability to potentially exploit price inefficiencies that may arise from short-term market disruptions.

For many investors, being able to ‘outsource’ those tactical moves, as well as more long-term strategic asset allocation decisions, into the hands of dedicated, seasoned investment professionals is a significant benefit of opportunistic multi-asset credit strategies.


We use cookies on our website to provide you with the best experience. By proceeding to our site you agree to our Cookies Notice and our site Terms and Conditions.