Global Aggregate Bond
The investment objective of Global Aggregate Bond is to outperform the Barclays Global Aggregate Bond Index by 200 (gross) basis points per annum over a market cycle.
Schroders Global Aggregate Bond offers an active, research-driven approach that aims to deliver strong performance from global fixed income bonds and currencies. A key focus of the strategy is to diversify opportunities by source of return, investment style and time horizon in an effort to generate consistent alpha over a market cycle.
Diversified sources of return include duration, yield curve, country allocation, currency, credit beta, credit sector, and idiosyncratic/relative value. By investment styles we mean the combination of judgmental and quantitative techniques, and by time horizons we mean blending longer term strategic positions with shorter term tactical opportunities to further diversify the return profile of the portfolio.
The Global Multi Sector team is responsible for the strategy, which is managed according to a team investment process with the three senior investment professionals in the team, Bob Jolly, Head of Global Macro Strategy, Fixed Income and Paul Grainger, CFA – Senior Portfolio Manager, Fixed Income, being accountable for the overall team investment strategy. The Global Multi-Sector team is supported by Schroders integrated and experienced fixed income team of over 100 fixed income specialists across the globe.
The strategy’s management team follows the philosophy that sustainable alpha generation is driven by skill and diversification. Diversification is achieved by alpha source and time horizon. We actively manage portfolios using a risk budgeting approach, allocating risk to positions where we believe there is sufficient mispricing to warrant an allocation of risk to a view or market.
To help us determine such mispricing’s we use fundamental, research-driven analysis together with technical analysis. Care is taken to diversify the positions in the portfolio which is a blend of risks often including cost effective offsetting positions. These offsetting positions are expected to perform should the central themes be proven to be inaccurate.
Finally, given the global nature of economies and markets it is critical that the team draw upon the expertise offered to us by our regional specialists thereby allowing us to access local market intelligence.
We believe the best way to deliver absolute returns is to diversify in terms of alpha source and time horizon. We use a broad alpha 'tool kit' and look to capitalize on opportunities - and hedge risk - wherever they occur.
- The Schroders Global Aggregate strategy seeks to outperform the Barclays Global Aggregate index by investing primarily in investment grade securities issued by governments, government-related entities and corporates from around the world, with up to 20% exposure to high yield securities.
- The portfolio may also utilize active currency management in both developed and emerging currencies for the generation of alpha and diversification of risk.
- Derivatives are allowed and used to hedge and obtain active risk in the Fund. Derivatives used include: interest rate futures, interest rate swaps, credit default swaps and currency forwards.
- Separate Accounts