What is Fixed Income?
Fixed Income is a catch-all term for investments within the world’s debt and credit markets. It is also a style of investment that has traditionally been associated with helping to mitigate against capital loss.
An ongoing evolution
Fixed income markets have changed dramatically since the global financial crisis. Central banks have pumped enormous amounts of liquidity into the system helping to depress yields. In addition regulations have increased, which has pulled liquidity out of the system and, after a long period languishing at or near historic lows, interest rates in the developed world have begun to rise. As a result, investors are having to approach fixed income markets differently, and increasingly, are looking for new ways to diversify their sources of income.
Our approach to Fixed Income
We believe the key to superior long-term returns in the fixed income market is compounding current income and avoiding principal loss through fundamental credit analysis and macroeconomic research. At the heart of our investment approach lies a robust, repeatable, global investment process, focused on the monitoring of risks. We understand credit, interest rate and market risk and, where possible, manage against these risks in an effort to deliver consistent performance to our clients.
Our range of expertise covers active, buy and maintain styles as well as a dedicated insurance capability.
Within active, we have benchmark strategies in the major fixed income sectors and flexible strategies that aim to deliver performance with a low correlation to both interest rate and credit risk. We also offer customised solutions to meet a variety of client needs.
Our buy and maintain strategies aim to provide an answer to the challenge of market illiquidity. With a strong focus on credit fundamentals and a conservative construction approach, our buy and maintain offering aims to maximise yield over the long-term while mitigating volatility.
Hans Stoter, Global Head of Core Investments
4 insights found
23 July 2019
Is it time to buy inflation breakevens?
The bond market has been on fire since the beginning of 2019. Interest rates are lower, and spreads are tighter thanks to the radical turnaround from all major central banks (from policy normalisatio ...
12 July 2019
Q2 2019: Lower rates, slower growth
With trade tensions being the largest threat to the macro outlook, investors are looking to central banks to provide support. So far, central banks have indicated their willingness to provide easier ...
04 June 2019
Defined benefit schemes: adapting to a cashflow negative world
With the vast majority of UK defined benefit pension schemes forecast to become cashflow negative in the next 10 years, it has become increasingly clear that the next challenge for pension scheme tru ...