What is Style Research?

Research and experience has shown that investment styles within the stock and bond market segments perform differently over time.

Equity investment styles include: domestic vs. international, company size (large, mid, small), and investment approach (growth, core, and value). Learn more about the opportunity through equity style rotation.

Bond investment styles include: domestic vs. international, quality (investment vs. non-investment grade), and maturity (short, intermediate, and long). Learn more about the opportunity through bond style rotation.

Why is Style Allocation Important?

The simple answer is to increase returns. JIC's style research suggests that:

• Performance trends exist not for a day or week, but, often times, for years.
• The performance difference between investment styles may be substantial. A small shift to one style may have a meaningful impact on performance results.

Therefore, by maintaining a flexible allocation structure, clients can potentially increase investment returns. In addition, these adjustments can be made with style-based index funds, so a client's existing active manager structure is not affected.

How Does JIC Make Style Allocation Decisions?

In making style allocation decisions, whether they are for stocks or bonds, JIC follows a similar process:

• Evaluate the current macroeconomic environment and determine how it may influence future returns.
• Determine the fundamental attractiveness of each investment style.
• Examine the technical characteristics of each investment style.
• Determine the magnitude of the style of "tilt".

 

 

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