By Franklin Templeton
Fixed income investing has undergone a sea change in the past decade. By tossing out some active management orthodoxies and embracing new technologies and quantitative techniques, we believe some managers are better equipped to capture unique insights and excess returns for their clients.
Several investment shops, however, have cast this transformation as a binary choice—a confrontation between enlightened quantitative approaches and outmoded “traditional” active managers who remain steadfast in the fundamental economic laws of capital markets. We think this quantitative vs. active debate sets up a false dichotomy. In this paper we explain how our active approach to quantitatively derived insights sets apart our “active quant” investment process.
Read Quantitative science actively adding to fixed income decisions global
