The team adopt a rigorous, fundamental research based approach that comprises of top-down asset allocation and bottom-up security selection, in order to help maximize alpha generation across the opportunity set.  This active, disciplined and total return oriented investment process seeks to generate attractive returns throughout the entire market cycle. The team’s active approach provides the flexibility to take positions in both interest rates and currency. This allows the team to capitalise on additional market opportunities as and when they arise within the market.

The portfolio is populated with a diversified range of securities across the maturity spectrum that includes Government, Corporate and Supranational bonds. The team actively manage the allocation between each segment of the investment universe (for example, the allocation between Government and Corporate Bonds), as well as the overall duration of the portfolio.  Portfolio construction remains entirely benchmark agnostic, the final portfolio reflects the team’s view of where the best opportunities in the market lie, and has no obligation to invest in areas of the benchmark that do not meet the team’s rigorous screening criteria.

Ongoing portfolio management remains a critical component of the investment process. The team seek to manage duration exposure (typically +/- 1 year relative to the Bloomberg Euro Aggregate: Treasury 1-3 Years Index) to optimise portfolio exposure to changes in interest rates. Furthermore, ongoing risk management ensures that portfolio risk is mitigated, and that no single risk dominates the entire portfolio.