Terms and Conditions

Please read these conditions carefully before using this site. By using this site, you signify your assent to the following terms and conditions of use without limitation or qualification. In particular, you consent to the use of all cookies on this website for the purposes described in the terms of use. If you do not agree to these terms or to the use of cookies as described below, do not use this site. AllianceBernstein may at any time revise these terms of use. You are bound by any such revisions and should therefore periodically visit this page to review the then current terms of use to which you are bound. This site is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein.

Terms Of Use

This site is solely intended for use by professional/institutional investors and institutional-investment industry consultants.

Do you wish to continue?

 

Systematic Fixed Income:

The New Frontier for Investors

The world of fixed income investing is evolving. Systematic fixed income represents a dynamic new strategy that can help investors navigate this changing landscape and achieve their financial goals.

The New Frontier

Exploring the potential of systematic investing in fixed income markets.

Expertise Meets Innovation

Integrating systematic strategies with traditional fixed income expertise.

Uncorrelated Returns and Enhanced Diversification

Designed to outperform benchmarks with similar volatility.

There is no guarantee that any investment objectives will be achieved.

What Is Systematic Fixed Income?

Systematic fixed income takes fixed-income investing to a whole new level. It harnesses the power of cutting-edge technology and data analysis to identify undervalued opportunities in the fixed income market. This active approach, driven by innovation, seeks to deliver positive alpha,* or excess return, for our clients.

A key benefit of systematic fixed income is its potential to offer valuable diversification by seeking to generate uncorrelated active returns. This means these returns have a low correlation to the traditional fixed-income active strategies in investors’ portfolios.

*Alpha is a measure of the active return on an investment, i.e., the performance of that investment compared with a suitable market index. 

Why Now for Systematic Fixed Income?

The systematic fixed income market is still early stage and presents an exciting opportunity for investors. A report published by Barclays shows that assets under management in systematic credit mutual funds in the US have more than doubled over the past year, reaching around US$3.5 billion. The systematic approach offers a risk premium and return potential that is very attractive.

 †Source: LSEG Lipper and Barclays, as of December 31, 2023

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk. Past performance does not guarantee future results.

The Systematic Advantage: Innovation Meets Expertise

At AllianceBernstein, we combine expertise with innovation to deliver high-quality systematic fixed income solutions.

Integrated Expertise

Our systematic team collaborates seamlessly with seasoned fixed income professionals. This powerful blend ensures the same robust execution capabilities as our traditional portfolios.

Extensive Experience

Over 20 years’ experience in quantitative research allows us to identify complex relationships within the market.

Cutting-Edge Infrastructure

Our abAlphaLabs platform facilitates rapid adjustments and testing of our strategies, helping them to remain effective.

 

The Diversification Power of Systematic Fixed Income

Our systematic fixed income products are designed to deliver consistent performance, aiming to outperform while maintaining benchmark-like volatility levels. Here's what sets our systematic fixed income products apart:

Uncorrelated Active Returns

Our strategies exhibit low correlation with traditional active fixed income, designed to enhance portfolio diversification and risk-adjusted returns.

Distinct Factor Exposures

We go beyond traditional factors, focusing on a broader range, including proprietary measures, to capture less well-known market signals.

Upside Capture, Downside Mitigation

Our strategies seek positive alpha while targeting similar volatility to their benchmark index. This translates to capturing upside potential with lower downside risk compared to traditional fixed-income products.

 

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk. There is no guarantee that any investment objectives will be achieved.