The notion of the ‘star manager’ in asset management, especially in fixed income, is fading. While some may find this a provocative statement, it reflects a profound evolution that’s underway in our industry.
The market of today, and certainly the one of tomorrow, requires more than individual flair and historical outperformance. Sophisticated clients are looking under the bonnet, demanding transparency, robustness and repeatability. They want to understand how performance is achieved, not just that it has been.
Upon joining Aviva Investors last year, I was attracted not just by the scale and depth of the platform but by the opportunity to evolve our offering for a future that will look very different from the past.
A new investor sophistication
What’s driving this change? Institutional investors, especially those allocating to fixed income, are becoming increasingly analytical and data-driven in how they assess asset managers. It’s no longer enough to present a glossy pitch deck or to showcase a single portfolio manager's past accolades. As one client recently put it to me: “Don’t tell me. Show me.”
Today’s allocators want proof of process, evidence of how alpha is sourced, how risks are managed and how culture underpins consistency. A recent eVestment study backs this up, finding that fixed income strategies with more predictable alpha generation – lower standard deviation of excess returns – were 40% more likely to receive new institutional mandates than peers with flashier peak performance but greater inconsistency.
And they’re right to ask for that. We’re operating in a far more complex environment: multi-polar geopolitics, persistent inflation volatility, rapid technological change and a structural transition toward more sustainable investing. To navigate this effectively requires more than a single strong voice. It requires collective expertise, team stability, systems integration and institutional memory.
Culture and collaboration over cult of personality
At Aviva Investors, we’re leaning into this reality. One of my core focuses has been reinforcing a culture that promotes open debate, shared accountability and team-driven success.
Culture isn’t about occasional social outings or vague value statements. It’s about how people show up every day – how they challenge each other constructively, how they make decisions together and how they learn from missteps. According to Morningstar, by 2023, more than 60% of active fixed income funds in Europe were team- or co-managed, up from less than 40% a decade earlier. The trend is clear: team depth and systematic delivery are now front and centre.
We’ve built cross-functional pods across our fixed income platform that spans investment-grade credit, high yield, emerging markets, rates, liquidity, and bespoke solutions. This ensures that ideas flow and diverse perspectives are heard. And we’re backing that up with tech enablement, strategic use of data and operational structures that institutional clients can rely on.
Predictability, not personality
One of the key expectations from allocators today is predictability of alpha generation. That doesn’t mean we’re trying to sterilise creativity or eliminate the art from investing. But it does mean our process has to be repeatable, our rationale for positioning explainable and our data analytics embedded deeply within our investment decisions.
In that light, technology plays a critical role. From portfolio construction tools and risk engines to Sustainability integration frameworks and scenario modelling, we’re leveraging a comprehensive digital stack. Not because it’s fashionable but because it’s necessary for delivering durable outcomes across varied market conditions.
Looking ahead: Meeting the demands of tomorrow
It’s clear to me that the future of fixed income management will be shaped not by individual heroics, but by holistic teams with complementary skill sets and a shared commitment to excellence. It will be shaped by managers who can not only articulate their process but demonstrate its effectiveness, its resilience and its scalability.
As bonds regain their place in diversified portfolios, clients are rightly demanding more. They want strategies that can weather market transitions, solutions tailored to outcomes and partners who think beyond next quarter’s returns. For any successful manager nowadays, that’s not a challenge but as a mandate.
The star manager era may be ending, but what comes next – anchored in process, powered by technology, and delivered by teams – is not only more durable but more exciting. It’s an evolution that better serves clients, strengthens our industry, and ensures we’re ready for what lies ahead.
Fraser Lundie is global head of fixed income at Aviva Investors. The views expressed above should not be taken as investment advice.