- Aberdeen Asset Management
- U.S. Institutional Investments
- Fixed Income
- Investment Process
Asia Pacific Fixed Income
Investment Philosophy and Process
We believe that Asian fixed income markets are not perfectly efficient. In order to maximize performance we believe 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
- To be benchmark aware, not benchmark driven
Successful investment in the Asian region requires:
- A global perspective
- Strategic fundamental macroeconomic research
- An understanding of political and policy influences
- An understanding of market technicals and market idiosyncrasies
We believe traditional risk management tools do not always work in the Asian markets and therefore we construct our own forward-looking expectations of risk and volatility.
Investment Process
Our investment process is focused 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 3 sub strategies – interest rates, currency and credit. Each sub strategy is managed independently by specialist investment teams who adopt a bottom-up approach for security selection.
Using a disciplined analytical approach, we are able to build a highly diversified combination of allocations to the sub strategies and ensure an optimal allocation is achieved for the portfolio. This investment approach also provides us with enhanced flexibility to customize portfolios in order to meet client specific risk-return objectives.
The four-stage investment process is highlighted below.
