Key capabilities
1. Prioritise returns independent of market movements
2. Focus on shorter-dated assets to reduce risks
3. Target attractive risk premia
4. Introduce a dynamic cross-market approach
5. Introduce floating-rate assets
By adding dynamism and flexibility, a fixed income portfolio can pursue a total return by allowing managers to respond tactically to changing market regimes while balancing risk, improving diversification, and capturing opportunities as cycles turn.
Global short-dated high yield
gLOBAL SHORT-DATED CREDIT
Key capabilities
Emphasising shorter-dated debt instruments can help reduce a portfolio’s sensitivity to interest‑rate movements and to default risks – this could be particularly appealing in in uncertain or rising‑rate environments
absolute return bond
Emerging market debt
Asset-backed securities
Key capabilities
Specific markets can offer yield opportunities while maintaining a balanced risk profile, offering a blend of defensive characteristics and enhanced income potential.
Multi-sector
credit
Key capabilities
By adding dynamism and flexibility, a fixed income portfolio can pursue a total return by allowing managers to respond tactically to changing market regimes while balancing risk, improving diversification, and capturing opportunities as cycles turn.
floating rate credit
Asset-backed securities
Key capabilities
By introducing floating-rate assets, a fixed income portfolio can lower sensitivity to rising rates and help deliver more reliable income through the cycle.
