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Aggregate Fixed Income

Aggregate Fixed Income

Fundamentally managed fixed income strategy with a contrarian style

Key points:

  • Portfolio managers have flexibility to exploit opportunities across the global fixed income universe
  • ESG is integrated in our approach to country and issuer selection
  • Research drives our investment themes and views

Philosophy

Bond markets are inefficient. We have the capability and process in place to identify and exploit these inefficiencies over the market cycle, by adopting a contrarian approach to markets with a focus on value.

Fixed Income markets are segmented as a result of various factors, including mandate restrictions across investor types and organizational rigidities. This can lead to dislocations and changes in relationships between segments. Our flexible strategy can choose from a palette of opportunities and transcend many of these artificial market barriers, both at a regional and asset class level.

Process

The strategy’s investment process consists of four steps.

Step 1: Quarterly outlooks. We gather fundamental input, analyze major economies and place this in a cyclical context, looking at interest rate and credit spread cycles.

Step 2: Portfolio construction & optimization. We discuss and establish where we believe different fixed income segments are in a cyclical framework. This forms the foundation for our strategic fixed income asset allocation positions.

Step 3: Risk management. We manage overall portfolio risks on an ongoing basis.

Step 4: Implementation. We support our portfolio managers with our experienced portfolio engineering and trading team for the purpose of portfolio implementation, allowing them to focus on new opportunities.

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Team

The portfolio managers are responsible for the overall positioning of the strategy, including cross-asset allocation within the fixed income universe, duration management, yield curve, and country and currency positioning. The portfolio managers are part of the Global Macro team, which consists of very experienced portfolio managers, economists, strategists and macro analysts.

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Disclaimer

BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.

What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License
  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
  • that is a body regulated by APRA other than a trustee of:
    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993
  • that is a body registered under the Financial Corporations Act 1974.
  • that is a trustee of:
    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.
  • that is a listed entity or a related body corporate of a listed entity
  • that is an exempt public authority
  • that is a body corporate, or an unincorporated body, that:
    (i) carries on a business of investment in financial products, interests in land or other investments; and
    (ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.
  • that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
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