Aberdeen’s fixed income portfolio managers provide their insights into what’s to come in the year ahead.Download 2014 Fixed Income Outlook
For us, successful fixed income investing is as much about finding good quality companies as it is about avoiding poor ones. After doing our research, if we can’t understand an investment, we won’t buy it. We don’t chase yield, but we do follow our fundamental convictions. We invest in countries and companies that we believe provide attractive risk-adjusted returns.
As a global fixed income manager, we rely on our teams in North America, Europe and Asia-Pacific to deliver the local insight needed to make the right investments. This knowledge gives our global teams access to what we believe are our best investing ideas, wherever they are.
We have a flat management structure. We work in teams, with no star managers and a common investment process. Our fixed income investment approach is driven by the belief that fundamental analysis is a key determinant of creating long-term value. This demands intensive first-hand research, combined with a clear and disciplined approach to value and risk.
Our global network of over 140 investors covers government bonds, currencies, credit and asset-backed securities in every region. Credit analysts offer broad and deep coverage of investment grade, high yield, convertible and loan markets. Macro analysts cover most major country issuers worldwide. All our research is home-grown and well-documented. By focusing on our own analysis, we screen out market noise and invest with confidence.
As most fixed income securities have limited upside, our investment teams set a valuation framework for all the investments in the portfolio. A strong buy and sell discipline can add attractive securities into our portfolios and reduce expensive ones.
In order to achieve strong risk-adjusted returns, we use a set of measures that enhance our ability to assess upside together with downside risk in our portfolios. We use our collective experience and common sense to help avoid mistakes.
Our extensively networked fixed income teams deliver investment solutions across the full range of fixed income markets, including a strong focus on Asia and emerging economies. We work closely with clients to address their specific risk-return requirements.