INSIGHTS

Investors often associate large cap equities with passive strategies, especially in large cap blend. This is not surprising given that over the past three years, the median manager in the active large cap blend space outperformed the benchmark only 3% of the time after fees.

A surge in energy prices pushed the latest U.S. Consumer Price Index (CPI) reading above forecasts, reinforcing the case that inflation could remain higher for longer. Higher energy prices have also increased market volatility and uncertainty around the path of interest rates.

Geopolitical shocks are an inherent part of investing. While major global events can trigger sharp, near-term volatility, history suggests markets stabilize, and often recover, in the months that follow.

In today’s markets, professional investment approaches are essential to unlock fixed income’s potential to deliver equity-like returns while diversifying risk, writes BNY Investments head of EMEA distribution, Gerald Rehn.