Investors benefit from an active fixed income asset allocation. Fixed income markets can be inefficient and often too focused on the short term. Consequently, we take a long-term view and emphasise on fundamental factors, such as economic or credit-specific views, over technical ones like momentum, for example, whilst still looking to benefit from our view of shorter-term opportunities.
The fund brings together our best ideas, generated from across our global fixed income team. Each idea must have the potential to give a meaningful contribution to returns; leading to a focused portfolio. As an overarching solution, we believe the fund represents a compelling option for investors seeking to outsource their fixed income decision-making to a truly global team of bond specialists.
A flexible, risk-aware approach is key to driving superior returns from fixed income over time.
The fund can invest globally, giving a wide opportunity set from which to construct a portfolio that can perform throughout market cycles. This is supported by the global nature of our business. However, it is important to note that at least 80% of assets will either be in sterling or currency hedged back to sterling.
Total return focus
Fixed income investing involves asymmetric risks that are skewed to the downside (i.e. potential losses are greater than potential gains). This can result in a tendency to focus on avoiding defaults. However, when trying to maximise total returns identifying winners is also crucial.
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
Explore our fixed income range
Investment grade credit
A range of strategies that utilise portfolio construction to deliver positive excess returns throughout the credit cycle with active integration of ESG factors and coordinated company engagement.
A range of strategies that aim to capture the full potential of high yield bond markets whilst protecting downside risk.
Emerging market debt
A range of emerging market debt strategies that invest across hard and local currency markets.
Fixed income views
The future of pharma: Increased returns or the age of biotech?
8 Dec 2021
After decades of low returns on research and development (R&D), the healthcare sector is producing a slew of innovations, from drugs to diagnostics. But with many coming from new entrants, will big pharmaceutical companies manage to keep up with the times?
The cost of climate change: A big threat to sovereign debt?
3 Dec 2021
Governments around the world are struggling to avert a climate catastrophe. Regardless of whether they succeed, climate change threatens adverse consequences for government bonds, although market impacts are likely to vary.
Credit: The long and short of ESG investing
25 Nov 2021
Credit is an asymmetric asset class. The upside is a coupon payment and limited capital appreciation; the downside is a default to zero. For all maturities and bond types, ESG integration can play a crucial role in mitigating risk.
The long decline: Why trend economic growth is set to go on falling
12 Nov 2021
Trend rates of economic growth, which have been on the decline for decades in the world’s leading economies, look set to fall further. That will have big implications for governments, companies, households and investors, argues Stewart Robertson.
COVID, China and the Fed: Diverging EM debt fortunes
3 Nov 2021
Relatively low vaccination rates, slowing Chinese growth, and terms of trade gains that may have largely peaked mean emerging market economies face several headwinds in 2022. Varying degrees of resilience and vulnerability are likely to result, argue Nafez Zouk and Carmen Altenkirch.
Six themes for emerging markets
28 Oct 2021
The International Monetary Fund (IMF) annual meetings are always a chance to reflect on the key trends affecting emerging markets. This year was no different. Carmen Altenkirch and Nafez Zouk engaged with policymakers and delegates to ascertain the real impact of the COVID pandemic on growth, fiscal metrics, and debt burdens.
Regulatory shifts in China: A new fork in the road?
12 Oct 2021
Investors in China should view recent interventions by the government in the context of its history and longer-term strategic ambitions, argues Amy Kam.
The taming of the few
27 Aug 2021
Despite accusations Big Tech companies are too powerful, their stranglehold across sectors will be hard to loosen. However, while investors need to keep a watchful eye on developments, Big Tech’s stranglehold on numerous economic sectors will be hard to loosen.
What does the data say? Climate change, real yields and live TV
27 Aug 2021
In the latest instalment of our visual series on topical data themes, we look at the latest IPCC report, the significant decline in US real yields and people’s live TV versus streaming habits.
Are bond investors too complacent about inflation?
11 Aug 2021
US Treasury yields have fallen appreciably in recent weeks, seemingly dismissing the threat of rising consumer prices. Some investors could be in for a nasty surprise if inflation proves more intransigent than anticipated, argue Michael Grady and Katarina Cohrs.
Food for thought: EMD and the threat of inflation
16 Jul 2021
Emerging market debt investors need to keep a watchful eye on food price inflation as a potential key driver of monetary policy, especially as this has not coincided with a weaker US dollar, argues Nafez Zouk.
China’s Big Tech crackdown
5 Jul 2021
Like Washington and Brussels, Beijing is worried about the growing power of large technology companies. But China’s regulators are taking swifter, more radical action than their peers in the West.
The taming of the few
1 Jul 2021
Regulatory authorities around the world are targeting the big US tech giants. However, while investors need to keep a watchful eye on developments, Big Tech’s stranglehold and influence on numerous economic sectors will be hard to loosen.
Lessons from Archegos: Have investors become complacent about banks?
14 Jun 2021
The advent of tougher regulations after the global financial crisis led investors to think banks were safe. Was the Archegos scandal a wake-up call or much ado about nothing?
Government deficits still matter, just not right now
13 May 2021
Deciding when to tighten the purse strings and hike taxes is complex at any time, and even more so when the economic fallout from COVID-19 remains unclear. Getting deficits – the gap between government spending and income – under control will need to happen eventually, but it would be a brave government that pursued such a goal now.
Are sustainable bonds the new smartphones?
10 May 2021
The market for sustainable bonds to fund activities that have a positive impact on the environment or society is booming. But there are many factors to consider before investing. Not least among them is a crucial question: is your money really being used to fund the activities promised?