Multi-strategy fixed income

Multi-strategy fixed income strategies are particularly useful for clients seeking a dynamically managed source of income and growth in a low-yield environment, diversifying their return-seeking portfolio and complementing other liability-aware fixed income allocations.

At LGIM we have the following core multi-strategy fixed income solutions:

Our Multi-Strategy Credit strategies target a total return of cash +5% pa (gross of fees) over rolling five-year periods. 

The strategy looks to generate returns through an active allocation to core return seeking assets, complemented by additional sources of alpha generation, including global relative value opportunities across credit, rates and currency markets.

The hedging overlay is designed to manage the downside risk and amplify the upside.

Our Absolute Return Bond strategies are designed for investors seeking positive returns through all market environments, with returns from both capital growth and income by investing in fixed and floating rate securities.

Investors can choose any combination of the ‘absolute return bond’ and the ‘absolute return bond plus’ variants of the strategy, depending on their individual risk/return objectives.

The strategies use an investment process that combines forward-looking investment themes with rigorous credit research and downside risk management.

These strategies provide flexibility to form part of an overall solution or as part of a reduced-risk growth portfolio. Central to multi-strategy fixed income strategies is capital preservation and limitation of drawdowns.

The benefits of LGIM multi-strategy fixed income solutions

  • Downside risk protection - We target growth while limiting downside risks. We know that income and sustainable cash flows play an increasingly important role as part of objective-driven strategies.
  • Flexibility to boost returns - Our strategies have the flexibility to source global investment opportunities, unconstrained by an index, throughout all market conditions. We aim to offer favourable return opportunities versus benchmark-constrained products, regardless of the future course of interest rates.
  • Diversified alpha sources - The strategies provide access to diversified sources of returns across a wide range of securities including investment grade, high yield and emerging market debt. They leverage our specialist expertise in all of these distinct areas.

Why LGIM for multi-strategy fixed income?

  • Synergies with other LGIM products - Our multi-strategy fixed income solutions dovetail with our wider range of fixed income strategies, including liability-aware fixed income, index and solutions offerings
  • Scale and experience - We dedicate significant resources to fixed income with a team of more than 90 professionals managing in excess of GBP 144 billion (as at 30 June 2017)
  • Macro-thematic approach - Our investment process combines top-down fundamental macro analysis with bottom-up stock selection, focusing on identifying turning points and new themes that drive long-term performance

Past performance is not indicative of future results.

Fixed income strategies

Find out more about our other fixed income strategies.

Benchmark driven credit 

Cashflow matching credit