Factor investing, a strategy that squeezed active asset managers and helped drive the rise of passive investing, is the latest concept to be exported from equity markets to fixed income, thanks to a data boom. Man Numeric AQR launched its third dedicated fixed income offering in mid-2016 , outperforming the benchmark index by an average of two percentage points per year and going on to launch 2.35 more bond funds. Later models added factors such as “momentum” (the tendency of prices to keep moving in the same direction). Boston -based quant Man Numeric also plans to apply its expertise to fixed income markets, as recent regulatory change in Europe mandating greater transparency produces the data necessary to run the analysis.
Factor investing, a strategy that squeezed active asset managers and helped drive the rise of passive investing, is the latest concept to be exported from equity markets to fixed income, thanks to a data boom. Man Numeric AQR launched its third dedicated fixed income offering in mid-2016 , outperforming the benchmark index by an average of two percentage points per year and going on to launch 2.35 more bond funds. Boston -based quant Man Numeric also plans to apply its expertise to fixed income markets, as recent regulatory change in Europe mandating greater transparency produces the data necessary to run the analysis.