Approach

We have the same core investment approach across our entire range of fixed income capabilities. This approach is based on three key beliefs:

  • Fixed income markets are inefficient in pricing risk; skilled investors can exploit market opportunities
  • An understanding of macroeconomic themes should drive investment thinking and portfolio positioning
  • Risk management is key to both portfolio construction and portfolio management.

A team approach combining macro themes with bottom-up idea generation

Macroeconomic analysis is used to understand the fundamental backdrop and identify strategic themes and the impact we expect them to have on different markets.

We also consider short-term market valuations and drivers to form shorter-term views, identify tactical themes and direct asset allocation.

Our portfolio managers and credit analysts work together to build a balanced, ‘best-ideas’ portfolio, incorporating our strategic and tactical themes.

Portfolio construction and risk management

Our process is designed to build portfolios with multiple sources of risk and return – which we believe is vital for consistent long-term performance.

We seek to reduce downside risk through stock selection based on fundamental research, while also addressing a number of other market factors which can negatively impact returns, including credit market risk, currency movements and interest rate changes.