The investment team dynamically manages the strategy’s allocation across the three key levers of foreign currency, interest rates and credit. The team employs an investment process that combines top-down macro analysis with bottom-up country and credit analysis while separating views with respect to those three levers. Through our top-down macro process and bottom-up credit research, the team seeks to opportunistically manage country, sector and security levels.
As a result, this allows the team to potentially enhance yield and total return as well as effectively manage risk. The team diversifies investments across 40 different countries with target risk budget exposures across both developed and emerging market debt opportunities. Investing in a combination of developed and emerging fixed income markets the team believe provide the most attractive yield and total return potential.
- Seek to understand the primary and secondary risks of each investment
- Separation of views with respect to currency, rates, and credit
- Bottom-up, fundamental research seeks to mitigate credit risk
- Tracking error, pre-determined risk budgeting
- Control for macro risks at the portfolio level
Firm Level: Independent Risk Management Team
- Performs comprehensive portfolio reviews with investment team and senior management
- Monitors individual security holdings across the entire firm