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Aggregate Fixed Income

Aggregate Fixed Income

Dynamic and flexible fundamentally managed global fixed income strategy

Key points:

  • Flexibility to exploit opportunities across the global fixed income universe 
  • Integrated ESG approach to country and issuer selection 
  • A strict focus on risk management resulting in limited drawdowns and low volatility

Philosophy

There is considerable divergence in performance between the various segments of the fixed income universe over time; a winner one year is often a laggard the next. The strategy’s overarching investment philosophy is based on the premise that these wide performance discrepancies represent opportunities that dynamic investors can exploit, because global fixed income markets and benchmarks are inefficient. In our view it is vital to invest across these markets according to a flexible, benchmark-unaware approach.

Process

The strategy’s investment process consists of four steps.
Step 1: Analysis. Top-down global macroeconomic analysis and research into market themes and bottom-up country and company research, which includes ESG analysis.
Step 2: Cross-asset fixed income strategy selection. Selection and duration positioning, country, yield curve and currency positioning, and issuer selection.
Step 3: Portfolio construction and risk management. Risk & reward analysis and portfolio construction.
Step 4: Implementation. Efficient execution of trades. In addition to the global strategy, a European aggregate fixed income variant is also available.
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Team

The strategy is managed by cross-asset portfolio managers who are responsible for the overall decisions, including the cross-asset strategy selection, duration, and yield curve, country and currency positioning. They use the insights and portfolio management expertise of the other fixed income portfolio managers, analysts and researchers who cover global investment grade credit, high yield, government bond, asset-backed securities (ABS), inflation-linked bonds and emerging market debt.

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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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