Global absolute return fixed income
Global & Absolute Return Fixed Income team is a multi-award winning team, managing more than USD 18 bn worth of assets1 across global fixed income markets through mutual funds and bespoke mandates.
Offering a range of solutions including Cash Enhanced, Absolute Return, Total Return, Investment Grade Corporate and High Yield strategies, the team’s top-down macroeconomic identity and strong focus on liquidity have been the main source of added-value in helping our clients achieve their investment objectives.
The team has also developed an innovative suite of investment solutions using liquid and cleared CDS indices to meet investors’ needs in gaining access to high yield, investment grade and private debt markets.
Key strategies
- Cash Enhanced: Target excess return over cash of +1% with less than 1% volatility. The strategy invests mainly in short-dated floating-rate notes.
- Absolute Return and Total Return: Flexible global allocation strategies across fixed income segments targeting high Sharpe ratios and contained drawdowns. – Global High Yield: Liquid exposure to high yield via cleared CDS indices and a limited interest rate exposure. An award-winning strategy .
- Corporate Investment Grade: Exposure to investment grade credit markets with moderate interest rate exposure, a large capitalisation bias and a top-down driven approach
- Global Hybrid Debt: Expertise in subordinated debt across financial and non-financial segments, including corporate hybrids, Tier 2, Tier 1 and Additional Tier 1
- Private Debt: Global private debt exposure (senior and mezzanine) with unique liquidity features in collaboration with leading private investment firm Partners Group
Investment philosophy & process
- Macro: The team is top-down macroeconomic-driven and asset allocation across fixed income segments is its key value added. It works with proprietary macro indicators (with a 20-year track record)
- Liquid: The team puts a strong focus on the liquidity of the instruments used to allow for efficient implementation of its allocation decisions (i.e. investing and divesting a segment)
- Disciplined: The team believes in investment discipline to preserve returns and optimise risk-reward. It works with tailor-made pragmatic risk modelling tools, such as hands-on stress tests and real-time performance monitoring
- Team-based: The team fosters a culture of complementary investment professionals challenging investment hypotheses from different angles