With interest rates and bond yields stuck at or near historic lows, absolute return investing is attracting attention, and rightly so, though there are associated risks, according to Towers Watson.

The global professional services company believes that given the current interest rate environment, it is the ideal time for employers sponsoring 401(k) retirement plans  to rethink their  fixed-income investment options.

In "Unconstrained Bond Investing: Examining the case for absolute return strategies for DC participants," Towers Watson investment consultants make the case for switching up to 25 percent of traditional U.S. aggregate bond asset to absolute return assets.

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