Fixed income

Global government bonds

We invest mainly in investment grade government bonds on a global basis, taking active country, duration and currency positions to generate performance. Importantly, the flexibility of the strategy allows for diversified exposures to be held across developed government debt markets and emerging market sovereigns.

We have typically maintained a sizeable allocation to the latter area in recent years, with holdings in both emerging market hard and local currency government bonds on a selective basis. This largely reflects our view that attractive opportunities may be found in the emerging market government sub-asset class based on what we consider attractive long-term valuations relative to developed government bond markets.

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