We manage a diverse range of short-duration fixed income strategies, tailored to meet your specific needs. Our strategies focus on capital preservation while aiming to generate an attractive risk-adjusted return.

Our short duration strategies include global and US short duration.  The team includes short-duration specialists who are focused on the short-end of the yield curve. We have built our business around developing customised solutions to meet organisations’ specific cash management requirements, and can offer you a full range of short-duration solutions that help you manage your operational cash, tactical liquidity and strategic liquidity needs.

EUR 5.6 bn

(USD 6.6 bn)

assets under management

< 1 year

to

1-10 year

durations

25 year

track record in US short duration

15 year

track record in global short duration

Investment Philosophy and Process

Our short duration fixed income strategies are based on capital preservation*, diversification and income generation.  Despite the short tenor of most of the underlying instruments they invest in, our short duration strategies are built around longer-term, thematic ideas, enabling us to adopt a pragmatic approach toward portfolio construction and liquidity management.

We run high-quality, highly liquid portfolios that are designed to preserve capital* and maintain your purchasing power through inflation protection. Our portfolio managers develop views on the macroeconomic environment based on market data and our proprietary models, and these views are augmented by input from our specialist alpha teams, helping us generate new ideas and review existing positions. We concentrate on three major segments of the fixed income marketplace:

  • Interest rates:  Tactical and longer-term views on duration, the yield curve and break-even inflation positioning, encompassing monetary and fiscal policy, supply / demand technicals,  the regulatory environment and valuation and sentiment inputs
  • Corporate credit:  Strategic allocations to high-quality, short-maturity corporate bonds with attractive risk-adjusted return potential
  • Structured securities:  Strategic allocations to asset-backed securities (ABS) and mortgage-backed securities (MBS), with a focus on security selection.

Risk management is an integral part of our process: as well as monitoring credit risk, interest rate risk, liquidity and several other sources of risk, we set rigorous profit and review levels for each trade.

  • Global Short Duration

    Our global short duration strategies are designed for investors with an investment horizon generally in excess of six months. Our range includes ultra-short duration (< 1 year), short-duration (1–3 years) and short-to-intermediate-duration (1–5, 1–10 years). Our portfolios are well diversified by sector, industry and issuer, and we typically fully hedge currency exposures.

    The return and risk targets of our short duration portfolios vary depending on our clients’ objectives, and we have experience managing strategies against a broad variety of benchmarks. We have a 15-year track record in running global short-duration portfolios.

    • Focus on capital preservation, inflation protection and total return within a diversified, risk-controlled framework
    • Customisable solutions ranging from three months to several years
    • Access to several specialist alpha teams
    • Multi-level risk management
    • Stable, experienced team with over a decade’s experience of managing global short-duration portfolios for institutional clients
  • US Short Duration

    Our US short duration strategies are designed for investors with an investment horizon typically in excess of six months.  Our range includes ultra-short duration (< 1 year), short-duration (1–3 years) and short-intermediate-duration (1–5, 1–10 years). Our portfolios are well diversified by sector, industry and issuer.

    The return and risk targets of our short duration portfolios vary based on our clients’ objectives. We have a 25-year track record in managing US short-duration fixed income portfolios.

    • Focus on  capital preservation, inflation protection and total return within a diversified, risk-controlled framework
    • Customisable solutions ranging from three months to several years
    • Access to several specialist alpha teams
    • Exhaustive multi-level risk management
    • Stable, experienced team with over two decades of experience of managing US short-duration portfolios for institutional clients
  • US Ultra-Short Duration

    Our US ultra-short-duration strategies are designed for investors with an investment horizon of three months to one year and who want to minimise their exposure to interest rate movements.

    Our portfolios are well diversified by sector, industry and issuer, and we can adapt their return and risk objectives based on your individual preferences.

    • Focus on  capital preservation, inflation protection and total return within a diversified, risk-controlled framework
    • Customisable solutions ranging from three months to one year
    • Access to several specialist alpha teams
    • Exhaustive multi-level risk management
    • Stable, experienced team