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Global Corporate Bonds

We believe that global bond markets are inefficient. Simply the construction of bond indices that, counter to all common sense, allocate most capital to the most indebted issuers, is evidence of this. We believe that, by understanding the “big picture”, i.e. the dominant top-down macro themes that influence bond and currency markets, we can construct portfolios that will outperform.

We also believe that risk control is vital to bond portfolio management. For us, risk control has multiple meanings:

  • Avoiding key-man risk through a collegiate, team-based approach.
  • Portfolio diversification to avoid concentrated exposure to single issuer credit risk.
  • Exercising judgmental control of portfolio risk, since quantitative approaches break down in market crises.
  • Hedging portfolios against “risk scenarios” – we aim to protect our portfolios from excessive losses.

Adherence to this philosophy has led us to outperform most when markets are characterised by stress or crisis, whilst we display more limited outperformance in benign investment conditions.

Focus on Top-Down Views on Global Markets

  • We grasp the “big picture” through top-down research, complemented by thorough bottom-up analysis
  • We identify strategic themes that translate into long-term portfolio biases.
  • Thorough risk return assessments and scenario analyses make us versatile in coping with ever changing market circumstances.

Solid Global Organisational Structure

  • Established committee-based structure reduces key-man risk and ensures consistency across our client portfolios – the idea generation of the whole team is directed to each portfolio.
  • Our success is dependent on the research and analytical skills of our stable and experienced investment teams, many who have worked closely together for over a decade.

Product Features:


Barclays Global Aggregate Corporate

Performance Target:

1% p.a

Tracking Error Range:

1 - 1.25% (Rolling 3 year basis)

Cash Position:

Minimal (typically less than 5%)


80 - 120

Judgmental Risk Analysis

  • Whilst we have generated steady alpha in trending markets, we have a track record of taking decisive positions in crisis markets to add considerable value.
  • Constant reference to (and hedging of) non-core scenarios has resulted in clients’ returns being buoyed by significant alpha when it was most needed.
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