In a Nutshell: Dynamic Global Bond 

August 2017
Quentin Fitzsimmons , Portfolio Manager

 

The growth of dynamic funds gives investors greater flexibility, the lack of constraint of a benchmark, the ability to look more broadly in terms of investment opportunity in fixed income markets. So our core hunting ground remains in government markets, but much more broadly than the traditional, shall we say, gilt based or US treasury based product. In fact, the ability to invest broadly in other local government markets, where there is liquidity to be found, often high yields, interest rate cycles that are not correlating necessarily, with the more traditional home markets that we understand, we think gives us a much greater opportunity set.

 

So we’re aiming to outperform cash by 3% within a very risk controlled ethos. So we focus on protecting capital downside. We’re aiming to achieve traditional diversification qualities against stock markets and aiming to achieve that with a consistency of return, a little bit of capital gain and a little bit of income growth.

 

Risk control is absolutely at the heart of what we do in terms of controlling and preventing downside risk to capital. We aim to slice and dice risk in many different ways. We bucket risk to ensure that we aren’t achieving unnecessary correlation, but we don’t stand behind the correlation histories of the market by being able to identify instead, underlying specific risk drivers at all times. So the ability to look broadly, the ability to look across yield curves and countries, is exactly what we’re trying to do in this type of product. By blending together high quality ideas on a global basis, we think that genuinely gives this type of product an edge and a superior risk return outcome.

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Dynamic Global Bond
RELATED FUND
SICAV
Class A EUR
ISIN LU0230817339
Seeking to uncover the best investment opportunities across the Japanese equity spectrum.
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YTD
Return
14.21%
Fund Size
(EUR)
€1,111.6m
1YR Return
-1.85%