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.