The growth of passive investing is widely discussed by equity market investors, but less so in fixed income. This is because there are a number of differences between equity and bond indices that need to be taken into consideration when analysing the active versus passive debate, which we believe supports the case for active management.
The second quarter of 2017 was marked by central banks’ communication returning as the main driver of performance of financial markets. The US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of Canada (BoC) guided investors towards an intention to normalise their monetary policies by reaffirming their confidence that the current global recovery will bring inflation near their 2% target.
