Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
- Seek to generate consistent performance over benchmark by exploiting inefficiencies in the full universe of the global fixed income markets:
- Focus on successful alpha generation and the importance of effective risk management.
- Alpha generation classified under three main performance activities:
- Currency Management: 35% Expected contribution to value added
- Country/Duration Management: 35% Expected contribution to value added
- Sector Allocation/Issue selection: 30%
- Currency limit: maximum +/- 40% relative to benchmark
- Weighted duration limit: maximum +/- 3 years relative to benchmark
- Sub-investment grade: maximum 20%
- Allocation to any corporate bond issuer limited to 5%
- Above investment grade: not restricted (includes corporates and emerging markets)
- Portfolio holdings: typically between 400 and 600 issuers
- Expected average credit quality: A- or better
- Target average tracking error: Between 150 basis points and 300 basis points per annum.
Past performance does not predict future returns.