Beyond Domestic Bonds
What, Where and How Much?
Many investors don't fully appreciate the value of diversification in their bond portfolios.
We think these investors may be missing an opportunity. Recent work undertaken by our team of quantitative specialists shows that going global, particularly when adding Emerging Markets Debt and Global High Yield exposure, can be beneficial to bond portfolios. This benefit appears to increase even further if the allocation is funded by reduced exposure to both equities and domestic fixed income.
Join us for an interactive webinar to find out how these often overlooked asset classes may improve the expected returns of a typical U.S. pension portfolio - without increasing, or perhaps even decreasing, the portfolio's overall risk.
- The optimal portfolio balances sources of risk, moving away from a domestic fixed income bias and towards increased global rates and credit exposure
- Increased allocations to investment-grade emerging markets and corporate bonds can be both desirable and beneficial
- Global high yield corporate bonds can also be good diversifiers
- Many U.S. plan sponsors may want to consider increasing allocations to global bonds while decreasing equity exposure. This could create a better match for a typical plan's liabilities
- portfolio construction