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Piggy banks
Why Broader Fixed Income Diversification?

Traditional fixed income has been available as a counterbalance to equity exposure. Historically, it has offered consistently positive total returns due to a 30-year bull market in rates.1

However, rates have declined nearly as far as they can and are starting to rise. This could lead to negative total returns for some plan participants and cause plan sponsors to explore opportunities to diversify their plans' fixed income options.

Broader Diversification May Come with Benefits

A more diversified approach may help participants better navigate periods of rising interest rates and/or market volatility.

broader-diversification-benefits

GSAM can help

The GSAM Global Fixed Income team manages portfolios that pursue strong, consistent performance across the fixed income market. Our process revolves around a global team of specialists, actively engaged in adding value in their area of specialization, and offering local insights from their various regions. The team uses a rigorous investment process that combines active management with disciplined risk management.

1Source: Barclays Capital as of June 30, 2013. The return components (i.e total return) accounts for two categories of fixed income return: income (i.e. coupon return) and price return. Income includes interest paid by the fixed-income investments, whereas price return represents the change in the market price of the fixed income security, which, depending on market conditions, can be negative. It is not possible to invest directly in an unmanaged index. Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.

This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.