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Financial intermediary?

Controlling volatility

Unconstrained fixed income

Unconstrained fixed income

Andres Sanchez Balcazar on our Absolute Return Fixed Income strategy

Our Absolute Return Fixed Income strategy aims to provide investors with stable returns despite a low yield environment. It is not constrained by a market benchmark and can invest globally across all fixed income sectors.

Central bank monetary stimulus and other unconventional measures are proving to be a mixed blessing for fixed income investors. We believe that in this challenging investment environment, investors should consider a flexible unconstrained approach to bond investing that is mindful of potential downside risks.

Our investment process is not guided by economic forecasting: our macro views are based on facts and are quantifiable. The process has three key principles: long term, value and robust. We analyse potential investment strategies beyond the economic cycle and aim to invest in strategies that we believe will have favourable pay-outs over the long term. 

We identify long-term themes that are based on facts and are quantifiable. Our aim is to build a robust portfolio that is liquid, well diversified and independent of a single scenario or forecast. – Andres Sanchez Balcazar, Co-Head of Global & Regional Bonds

We aim to construct a diversified portfolio using the broadest possible investment universe. Our flexible approach is designed to preserve capital during periods of market volatility. We target a return of 3-4 percent over cash gross of fees. We aim to be well diversified across rates, spreads, across both developed and emerging markets.

Within the same team we also manage our Global Fixed Income Opportunities strategy, which targets a higher risk/return profile of 6-8% gross of fees above Libor, combined with 6 to 10% volatility range.

Our investment managers have a long track record in managing fixed income portfolios. They also draw on in-house expertise from credit researchers, other fixed income investment teams, quantitative analysts, economists and risk management specialists who contribute views, analysis and support.