MercerInvestment Consulting will begin rating alternative active Australian fixed income products, having abandoned researching conventional active fixed income products last year.
According to Mercer’s head of fixed income research Simon Romijn, alternative fixed interest products are expected to add greater value for institutional investors.
“They tend to focus on a wider range of value adding activities, such as alpha transfer ideas, and these sort of products may deliver the sort of value relative to benchmark after fees that justify investor interest,” Romijn says.
Last year, Mercer decided to stop recommending conventional active Australian fixed income products to its clients.
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