The case for flexibility in a rising rate environment

It is broadly accepted that a rise in interest rates is a matter of when, rather than if. The question for fixed income investors now is how to position pre-emptively for a new environment in which rising yields have the potential to erode total returns. Flexible funds that can invest across the entire universe of fixed income markets while controlling risks can not only mitigate the effects of rising rates, they can also exploit opportunities that traditional mandates cannot. Flexible bond funds vary in their details, but they generally have in common the capability to invest across ...