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
233 insights found
12 April 2019
Fixed income markets are enjoying a good run with the Federal Reserve again, suggesting this week that rates are on hold for the foreseeable future.
08 April 2019
Are the yield curve’s predicative powers diminishing?
The US yield curve has inverted before every recorded recession over the last five decades, however the spate of recent and unconventional monetary policy could potentially be rendering the barometer ...
05 April 2019
Warmer weather please
There have been some signs of global growth stabilising, although European data is lagging. China and the US published stronger data on manufacturing last week.