We believe that Asian fixed income markets are not perfectly efficient. In order to maximize performance we believe we need to:
Successful investment in the Asian region requires:
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.
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.