We frequently invest in bond and fixed interest instruments of the highest credit quality (investment grade) and tend to use Government, Supranational and Corporate Bonds for this purpose.

The management of duration (a measure of the average maturity of a bond’s cash flows from both coupons and principal repayment) and diversification considerations are important disciplines in this respect. Duration, quoted in years, indicates the average exposure to market risk and allows bonds with different coupons and maturities to be compared. Our economic forecasts and assumptions drive our decisions and the resultant portfolio construction.

It may be suitable for certain client mandates to seek a more active management of credit which may enhance the relative performance of a specialist bond portfolio. We look for the most suitable collective investment vehicles in the market place for this purpose.



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