Comprehensive Approach
The Fund's strategies are implemented through robust multi-step investment processes to facilitate active search for attractive opportunities and vigilant portfolio monitoring.
Ratings Preference: Higher credit quality spaces
We prefer Investment-Grade (IG) and high-quality High Yield (HY) credits with inherent resilience to perform well in various market cycles. We may also invest in non-rated credits whose fundamentals are equivalent to those preferred ratings. We restrict our exposures in lower-rated HY credits and we avoid speculative distressed or restructuring situations.
Markets Preference: Established Economies
We prefer investing in Developed Markets (DM's) as well as mature Emerging Markets (EM's) which we believe could offer the right combination of steady economic profiles, growth potential, certain extents of rule of law and regulatory frameworks, and dynamic business sectors. We have a more cautious approach on less mature EM's, but will not rule out minor tactical investments in those with rapid transformational reforms, solid growth trajectory and disciplined governance.
Instruments Preference: Liquid Debt Securities
We prefer investing in relatively liquid bonds which provide us with the ability to rebalance positions based on valuations, opportunities and risk control. We maintain the flexibility to invest in debts across capital structure (including subordinated and preferred / hybrid securities) to generate enhanced returns from strong credits during favourable market cycles. We do not target esoteric derivative structures and private lending for investments despite potential merits for these areas; we prefer to stick with our core investing expertise in liquid fixed income strategies.
