Strategy
Investment Approach
- The Global Government Bond High-Quality Strategy is a concentrated portfolio of high-conviction, high-quality global government bonds.
- The strategy seeks to achieve positive above-benchmark returns through income and capital appreciation.
- The strategy aims to perform well regardless of market conditions and be uncorrelated to equities, credit, or high yield fixed-income holdings.
- The strategy aims to identify the best risk/reward opportunities across a universe of countries and currency markets.
- The strategy’s approach is driven by bottom-up fundamental research that integrates top-down macro views, valuations, and technical elements.
- Environmental, social, and governance (ESG) factors are assessed by our research specialists, who collaborate with dedicated Responsible Investing analysts.
Portfolio Construction
- Duration risk is managed within +/-6 years weighted average duration of the benchmark.
- On an absolute basis, the strategy’s duration range is 2 – 14 years.
- Strategy’s total exposure per currency cannot deviate by more than +/-50% compared to benchmark weight.
- Allocation to any government issuer, including government-related issuers and government agencies, is not restricted.
- Exposure is limited to investment-grade assets only.
- Holdings range from 30-60 high-conviction bonds.
- Target a tracking error of 200-500bps per annum.
- Annual turnover ranges between 75% and 250% depending on market volatility.
Past performance is not a reliable indicator of future performance.