Absolute Return Income

The strategy’s absolute return objective and broad global opportunity set grant the portfolio managers flexibility to express their investment insights that are not constrained by traditional fixed income benchmarks. This flexibility transcends the breadth of the global fixed income opportunity set to include structural alphas. The investment process is decidedly top-down in approach. The portfolio managers formulate their secular and opportunistic views across different countries, currencies and sectors and translate those views into portfolio exposures – yield foundation and structural alphas – that represent highest-conviction ideas, and implement them through cash or derivative instruments. This is a capital preservation, global fixed income strategy that targets moderate level of return.

Investment Approach

Experienced Investors

1. The investment team has been focused on managing strategies with absolute return targets that seek to provide stable and consistent performance with a low tolerance for risk. The team has managed unconstrained, absolute return portfolios through marked periods of extreme volatility and stress.

Investment Flexibility across a Global Opportunity Set

2. The strategy invests broadly across global fixed income markets and is not constrained by benchmark-specific guidelines. This latitude allows the team to fully express high-conviction active views and avoid areas where we see greater downside risk.

Uncorrelated Sources of Return

3. The strategy seeks to provide positive long-term returns through the combination of core fixed income securities and derivative based structural alpha strategies. This allows access to sources of returns that are intended to be uncorrelated to traditional risk assets.