We believe much of our competitive advantage lies in our ability to interpret markets. Our investment team follows a process that ensures ideas are consistently analysed and rigorously debated.
Our fixed income specialists are guided in their research and fund management duties by a three-pronged philosophy.
• Markets are inefficient. We can exploit this through robust research and active management.
• It is vital to identify, analyse and manage risk.
• Investment strategies should be transparent and clearly communicated.
Our investment process is designed to provide an effective and disciplined approach to idea generation, debate and implementation. Its focus is to discover strong investment ideas, regardless of market conditions, and to position them in portfolios to collectively achieve our funds’ performance objectives. It maximises the strength of our team and ensures that decisions can be arrived at quickly and effectively.
All of our rates and credit specialists’ research and recommendations are collated and debated during our monthly strategy week in order to craft the fixed income team’s overall investment strategy. During our strategy week, our rates and credit specialists meet, via video conference, with their US and Netherlands-based colleagues to share and challenge each other’s opinions, in order to bring these global views to three overarching strategy meetings which move over the week from a top-down focus through to bottom-up.
Our style is highly active, taking full advantage of the investment opportunities presented to our fund managers, who draw on the best ideas arising from our global rates and credit specialists’ research.
In particular, we make full use of our funds’ investment flexibility, seeking to exploit six main sources of alpha: asset allocation, duration, yield curve, stock selection, sector selection and ratings selection. We believe in taking multiple positions at all times, so that no one risk dominates our funds’ strategy and performance.