Past performance is not a reliable indicator of future performance.
The Dynamic Global Bond (USD Hedged) Composite seeks to deliver consistent fixed income returns through a flexible, dynamic and diversified allocation to debt instruments from around the world. The strategy adopts a holistic and rigorous approach to risk management to protect clients on the downside, and particularly seeks to provide adequate diversification at times of equity markets’ correction.
- The Dynamic Global Bond Strategy seeks to provide attractive, stable income and downside risk management through dynamic and flexible portfolio management. The strategy is not benchmark sensitive and invests in fixed income securities from a broad opportunity set, looking for best opportunities but also for defensive investments to manage downside risk.
- Seeks performance through income and capital gains
- Seeks to generate consistent and sustainable performance through diversification across geography and markets
- Controlled risk profile with bond-like volatility
- Focus on downside risk from potential rise in interest rates
- Tactical management of duration profile and country selection
- Based on high conviction views driven by extensive research platform
- Low correlation with risky markets during periods of risk aversion
- Focus on government allocation as opposed to credit risk
- Target value added: seeks to outperform the U.S. 3 month Libor over a full market cycle (Not a formal objective and it can be changed without prior notice.)
- Target tracking error: between 2% and 5% tracking error annualized
- Total duration between -1 and 6 years
- Minimum 50% currency hedged
- Minimum 50% in non-USD securities
- Ability to go long and short individual countries and currencies
- Up to 100% allowed in government bond securities
- Up to 30% allowed in High Yield