Fixed Income (Bonds)

We are one of Europe's largest bond investors, with a strong track record of active management across fixed income assets globally.

Fixed income securities, also known as bonds, are loans that are usually taken out by a government or company. They normally pay bondholders a set rate of interest over a given time period, at the end of which the amount borrowed, the principal, is repaid by the bond issuer. The regular interest payments, which are known as coupons, can provide investors with a predictable income stream over the life of the bond, until it matures. The price of a bond can vary over its life, meaning investors can also profit from any increase in its value if they sell before maturity.

Bonds can bring diversification to your investment portfolio. You've probably heard the term 'don't put all your eggs in one basket'. When it comes to investing we use this term in relation to asset classes. Bonds can help to spread investment risk and are often seen as a counterbalance to company shares within an investment portfolio.

Other benefits of investing in bonds include:

  • Potential income generation from regular interest payments.

  • Capital preservation, since bonds can be considered less risky in terms of losing value.

There are risks and considerations with investing in bonds:

  • Investments in bonds are affected by interest rates, inflation and credit ratings, and it's possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by a fund.

  • High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.

  • Investing in emerging markets (countries in the process of catching up with developed economies, with rapid growth and increasing industrialisation) involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

  • The value of your investment can go down as well as up so you might not get back the amount you put in. When you take money out and/or when we take a charge, this will reduce the value of your investment.

Our established team of investment professionals aims to deliver performance over the long term across a range of fixed income products.

We manage a wide range of funds, covering the spectrum of global government and corporate bonds. 

We seek to identify the best relative and absolute value opportunities by taking advantage of the extensive and diverse experience across our investment teams and our large in-house team of credit analysts.

A focus on long-term performance allows investment teams to exercise conviction, while considering risk management at the same time.

While each fund differs in terms of its specific investment strategy, they can be grouped into different categories, according to their characteristics.

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