- Focus primarily on hard currency sovereign debt, with smaller strategic allocation to corporate debt, and tactical allocation to local currency debt.
- Integrate proprietary credit research and relative value analysis.
- Establish independent credit rating at the country and corporate issuer level.
- Seeks to add value through active country allocation and individual security selection decisions.
- Employs a long-term investment horizon and seeks to limit risk through diversification.
- Diversified portfolio structure: typically 100-150 issuers
- Duration bands: managed within +/- 1 year of the benchmark
- Average credit quality: BB
- Country exposure will range between 0% and a max of 10% over the benchmark
- Expected tracking error should range between 200-400 bps
- Up to 35% in EM corporate bonds