Investment Approach

  • 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 help manage downside risk.
    • Seeks performance through income and capital gains
    • Seeks to generate consistent and regular 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 ICE BofA 3 Month T Bill index over a full market cycle (Not a formal objective and it can be changed without prior notice.)
  • Target volatility: between 2% and 5% volatility annualized

Portfolio Construction

  • Total duration typically between -1 and 6 years
  • Typically 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