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Smart strategies for outperformance in fixed income

Many investors assume that active managers rarely outperform their benchmarks and often extend this belief across all asset classes.

Decades of research support this view in equities, where market efficiency and transparency make it harder for active strategies to add value. But fixed income is different. We outline the greater potential for active managers to add value in fixed income.

Bonds beyond borders

In our view, an increasingly fragmented global economy means fixed income opportunities are no longer moving in lockstep. We believe a global approach can help investors reduce concentration risk, improve portfolio resilience and unlock a broader range of return drivers across rates, credit and currencies.

Thoughts for 2026

We present our outlook for 2026, covering global fixed income markets, interest rates, inflation and currencies.

If US interest rates decline but inflation remains elevated, we expect cash investors to migrate into bond markets seeking higher returns. This is an environment where active management, diversification, and a global approach remain as important as ever.