How a Dynamic Strategy Can Provide Return – and Safety – in Uncertain Times

Fixed income spectrum returns are nonlinear and more volatile than most people would expect. Broadening the exposure to a much wider universe of credit instruments can give portfolios more potential for outperformance.

As with any investment strategy, there are risks to consider with MAC. Essential to managing risk is the manager’s strategic view of where we are in the economic and credit cycle to position for drawdown periods.

Despite today’s defensive orientation, opportunities to capture alpha still emerge within each region and asset class. For a MAC approach to be effective, bottom-up security selection is key, which means it’s crucial for managers to have knowledge across asset classes and geographical areas.