We create long-term value by running high-conviction portfolios informed by our own security analysis. We don’t chase yield, and we see loss avoidance as more crucial to returns than identifying winners.
- Comprehensive set of capabilities covering benchmark-orientated, liability-related and absolute-return strategies
- Proprietary credit-research model helps avoid losers as well as identify winners
- Global reach with experienced teams around the world
- Security focus on value relative to fundamental quality
- Emphasis on risk oversight to reduce losses
- Our long-standing Asian presence supports insight into emerging markets
Capabilities in focus
Total Return Bonds
Although bonds are primarily valuable to investors for their yields, total-return bond strategies focus not only on yields but also on the capital appreciation that judicious bond investing can produce. These strategies can explore opportunities in niche markets and invest in local-currency foreign bonds. Total-return bond strategies can also shift bond durations and adopt positions across multiple yield curves. They can thus provide protection against rising rates, weakening currencies and volatility in mainstream fixed-income markets.
Corporate bonds offer a diverse range of investment opportunities. Investment-grade corporate bonds have higher yields than those of government bonds, allowing for superior income streams, yet still provide a high degree of stability and a low risk of default. By considering the full spectrum of credit quality, investors can also take on more risk through including high-yield bonds in their portfolios.
Stewardship & ESG
An environmental, social and governance (ESG) framework is embedded within our investment approach. Awareness of ESG factors highlights financial and reputational risks related to the companies in which we invest. For this reason, ESG engagement is not a cost, but an approach that can enhance investment performance. Our belief is that we should act as responsible stewards of our clients’ assets, seeking to ensure that our investment decisions will generate a positive social impact as well as financial performance.
Emerging markets Debt
Emerging-market debt offers investors an important avenue for diversification as well as an attractive asset class in its own right. The economies of the developing world continue to grow faster than those of the developed world, and the current-account balances of emerging nations are improving. Meanwhile, credit quality has improved markedly in developing nations, so that the typical component of an emerging-market bond index is investment grade.
Emerging-market bonds denominated in local currencies rather than in hard currencies (typically the US dollar) offer additional diversification benefits, in that they are less exposed to movements in US interest rates, but instead respond to domestic conditions in their own countries.