FYI: Investors are warming to passive fixed-income products, but that may be a mistake, according to one of the world’s largest asset managers.
According to “Active Advantage,” a report from Newark, N.J.-based PGIM Investments, which is the global investment management business of Prudential, there are now more than $3.8 trillion in fixed-income mutual funds and ETFs, with actively managed assets making up the majority. Yet PGIM also notes that most assets are flowing into passively managed strategies, even within fixed income. In 2016, 64 percent of fixed-income net flows were allocated to passive products, according to PGIM.
Regards,
Ted
http://www.fa-mag.com/news/one-asset-manager-says-this-is-no-time-to-go-passive-in-bonds-33449.html?print
