Bond funds had severe losses in 2022 due to the sharp interest rate hikes. There are fixed income mutual funds such as PIMCO funds that are actively managed and let managers express a view on rates by taking certain positions including short positions. They might also take selective positions in emerging markets or below investment grade fixed income.
My understanding is it is not conclusive whether active management specifically in fixed income outperforms passive investment. The factors that drive fixed income are different and it would be attractive to have a manager that would hedge against the 2022 rate hikes.
Would it be acceptable to place the fixed income portion of one's long term investment portfolio 100% or majority in actively managed fixed income? Is there a context where this would make sense?
Submitted April 14, 2023 at 04:18AM by josemartinlopez https://ift.tt/w6sZ3fD
