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Benchmark driven credit.

LGIM provides a comprehensive range of regional and global benchmark driven credit solutions:

Global credit

We leverage our regional expertise and asset allocation capabilities to deliver truly global credit strategies for our clients.

A global portfolio can be built by simply combining regional allocations or portfolios together. However, we believe that global credit portfolios have additional opportunities to add value by considering cross-market relative value differences on a tactical as well as longer term strategic basis.

LGIM has three global strategies in active investment grade fixed income:

  • Global Credit managed against a sterling benchmark (Core Plus)
  • Global Credit managed against a global benchmark
  • Global Credit managed against an absolute return benchmark
Sterling credit

Sterling credit is an important asset for UK institutional investors, offering access to a wide range of global issuers in a domestic currency.

LGIM is one of the UK’s largest holders of sterling corporate bonds. This size and scale not only gives us superior access to new issues but also means there are significant crossing opportunities for our clients.

LGIM has three principal strategies in sterling investment grade fixed income:

  • UK Corporate Bond All Stocks
  • UK Corporate Bond Long Dated
  • Collateralised and Corporates
Euro credit

We believe that the euro credit market offers a diversified range of sectors, issuers, countries and bond structures.

New borrowers within European markets have taken advantage of the single currency creating new investment opportunities. At the same time, the way investors look at risk is increasingly linked to country exposure and sovereign credit.

LGIM has four principal strategies in European investment grade fixed income:

  • Euro Corporate All Stocks
  • Euro Corporate Long Dated
  • Euro Corporate Non – Financial
  • Euro Corporate Higher Alpha
US credit

The US investment grade fixed income market is the largest and deepest credit market in the world. As such, an allocation to US credit can provide a liquid way to access the credit market premium, while offering diversification benefits for sterling-centric portfolios.

Emerging market debt

The under-researched and diverse nature of emerging markets means that opportunities can often arise where emerging market sovereigns and companies are underrated compared to developed market peers

We believe the key to taking advantage of these opportunities is a robust macro-driven investment process, supported by strong credit research. If pursued properly, we see emerging market debt as a source of diversification and performance for fixed income portfolios.

LGIM has a range of blended benchmark-driven emerging market debt strategies investing across sovereign debt and corporate credit globally, including funds hedged to sterling:

L&G Emerging Markets Bond Fund
L&G Emerging Markets Short Duration Bond Fund

A consistent macro thematic investment process is employed for all strategies, supported by rigorous fundamental credit research to identify conviction views and manage risks vs benchmarks - reflecting the distinctions and dynamics of local markets.

Taking regional excellence global

LGIM is one of the UK’s largest investors in sterling corporate bonds, running considerable portfolios through both our index-tracking and active businesses.

Within our global credit solutions we leverage our regional expertise and asset allocation capabilities to deliver a truly global strategy for our clients.

In addition to sterling credit we offer a specialist range of regional strategies, including European, US and emerging market credit.

Why LGIM for benchmark-driven credit?

  • All-purpose approach - Our investment process integrates top-down fundamental macro analysis with bottom-up stock selection and is specifically designed to perform under all market conditions, with no in-built style biases
  • Risk management - By effectively managing a wide variety of potential risks, we have successfully negotiated some of the most challenging conditions investors have ever seen, delivering solid performance
  • Strong and experienced global fixed income team - LGIM is one of the UK’s largest institutional asset managers and dedicates significant resources to fixed income with over 90 investment professionals feeding into our active fixed income investment process and together managing in excess of GBP 144 / EUR 165 / CHF 180 billion (as at 30 June 2017).

Past performance is not indicative of future results.

Contact us

Christy Morrison
Head of Global Fixed Income Distribution 
+44 (0)20 3124 3195
[email protected]

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