Asian Fixed Income

Our investment philosophy and process

We believe traditional risk management tools don’t always work in the Asian markets, so we construct our own forward-looking expectations of risk and volatility.

We also believe that Asian fixed income markets are not perfectly efficient and that to maximise performance we need to:

• Focus on the entire regional investment universe
• Implement a diversified range of investment strategies covering markets, duration, yield curve and foreign exchange
• Be benchmark aware, not benchmark-driven

Investment Process

Our investment process focuses on identifying and exploiting investment opportunities across the entire Asian fixed-income universe.

A single, fundamentally-driven investment process provides the basis for dynamic allocation of risk across three sub-strategies.

• Interest rates
• Currency
• Credit

Each sub-strategy is managed independently by specialist investment teams who use a bottom-up approach for security selection.

With our disciplined analytical approach, we can build a highly diversified combination of allocations to the sub-strategies, ensuring optimal allocation for the portfolio.

This investment approach also gives us the flexibility to customise portfolios to meet clients’ risk-return objectives.

The four-stage investment process is shown in the diagram below.