Our aggregate portfolios leverage key areas of the entire fixed income team, ranging from long only benchmarks to absolute return, to those that incorporate swap overlays. Our investment process is specifically designed to accommodate the individual requirements of our clients at a bespoke level.
We want all clients to benefit from our investment decisions within clear pre-agreed guidelines, monitored by the lead portfolio manager using a number of proprietary systems. Market allocation boundaries (e.g. government bonds versus index-linked versus corporate bonds versus overseas bonds) are agreed along with duration boundaries, credit rating limits and in many cases, overall portfolio tracking error ranges. Portfolio construction uses the full range of freedom granted by the mandate, investing in instruments that fall within stated guidelines as long as they qualify on expected return, conviction and portfolio risk criteria. The scaling of individual positions in stocks and, by extension, countries or sectors, is managed within parameters agreed with each client.
We would typically take tactical positions in the following areas for a mandate of this type:
- Government bonds
- Corporate bonds
- Inflation-linked government bonds
- Overseas bonds
- Asset-backed securities
- Mortgage-backed securities
- High yield
- Emerging market debt
- Cash
We would typically also employ the use of derivatives such as futures, forward foreign exchange, interest rate swaps, inflation swaps and credit default swaps subject to individual client guidelines.
Please note the value of investments and any income will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested.
