Next Generation Fixed Income (NGFI)

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DEFINITION of 'Next Generation Fixed Income (NGFI)'

Next generation fixed income is an innovative approach to investing where the manager actively exploits all factors of return across a range of fixed income strategies from traditional (benchmark-oriented) to alternative (hedge funds and fully unconstrained).

BREAKING DOWN 'Next Generation Fixed Income (NGFI)'

The combination of interest rate volatility and an aging population is challenging the ability of successful return generation by traditional fixed income managers. Innovative investment managers are now blending both traditional and alternative investment styles, and utilizing sophisticated investment tools, in order to exploit all the factors of return available.