Capital Ideas Podcast Cracking the Agg: How active fixed income can beat the benchmark
Sep 25, 2025
Ritchie Tuazon, a fixed income portfolio manager at Capital Group with expertise in TIPS and rates trading, shares insights on active fixed income strategies. He discusses how short-term signals can guide long-term investment views and the critical role of fixed income in portfolio diversification. Richie explains how strategic security selection and market positioning can outperform benchmarks like the Bloomberg U.S. Aggregate Bond Index. He emphasizes the importance of managing conviction without hubris and highlights lessons learned from mentorship and competitive sports.
AI Snips
Chapters
Transcript
Episode notes
Short-Term Signals Inform Long-Term Views
- Short-term market signals inform and improve long-term investment views.
- Understanding Fed moves and near-term data helps form durable portfolio positions.
Launching The TIPS Fund
- Ritchie started a TIPS fund after seeing large firms succeed and noticing Capital lacked one.
- They launched in December 2012 and it grew into a $15 billion franchise.
Fixed Income As Portfolio Ballast
- Fixed income serves as the ballast and diversification within portfolios, not just yield.
- Current higher yields offer income while preserving capital if equities falter.