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Bond managers get fundamental

Asset managers are returning to more traditional methods of picking according to fundamentals rather than relying on benchmarks

LOW YIELD: While the sell-off shook markets and drove up yields from New York to Zurich, 28 per cent of the investment grade securities in the US$45 trillion Bloomberg Barclays Global Aggregate Index still earn less than one per cent.

EVEN before bond yields ripped through the roof this month, some asset managers had begun quietly shifting strategies in a fundamental way: less index, more brain. Instead of delving deeper into matching benchmarks that are now loaded with negative-yielding debt, they're returning to more...

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