Why today’s bond market demands active management


AAs the easy money prospect draws to a close and we face a tougher bond market environment, investors will need to adjust their fixed income portfolios to reflect the more hawkish outlook for China’s monetary policy. the Federal Reserve.

In the next webcast, Why today’s bond market demands active management, Matthew Cohen, ETF Sales Team Leader at Principal ETFs; Greg Tornga, Managing Director and Portfolio Manager at Principal Global Asset Allocation; and Mark Cernicky, Investment Specialist at Principal Global Fixed Income, will highlight the benefits of an actively managed fixed income investment strategy capable of maneuvering in a rapidly changing bond market while helping investors generate return opportunities attractive along the way.

For example, the ETF Corporate Assets Principal Investment Grade (NYSEArca: IG) is an option that investors can consider. IG is an actively managed fund, a potentially beneficial feature at a time when demographic changes could disrupt traditional investment in corporate bonds. The ETF attempts to provide current income and capital appreciation by investing in investment grade corporate bonds rated BBB or above by S&P Global Ratings or Baa3 or above by Moody’s Investors Service.

IG combines bottom-up independent credit research with a top-down strategy, seeking alpha through credit selection, sector rotation, curve positioning and a forward-looking iterative process. This mechanism seeks loans with a stable to improving credit rating trajectory that can benefit from compression of spreads and income premiums, an approach relevant in the current business credit climate.

IG may include global exposures because its fixed income pool covers foreign securities, corporate securities, securities issued or guaranteed by the US government or its agencies and instruments, and securities issued or guaranteed by foreign governments payable in US dollars. In addition, it may invest in other investment companies, including exchange traded funds that invest in fixed income securities.

Financial advisers who want to learn more about the bond markets can sign up for the Wednesday, November 17 webcast here.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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