01Our best-in-class sovereign credit toolkit – ranging from detailed debt sustainability analysis tools and budget tracking to quant models that harness big data sets – helps our specialists pinpoint the best investment ideas. |
02In-line with our ‘compelling forces’ framework, we place a strong emphasis on peer-reviewed credit fundamentals, complimented by the analysis of valuations and market behaviour dynamics. |
03While always ensuring portfolio diversification, we are not afraid to invest where we have conviction. Equally, if we do not think a country’s bonds will outperform, we do not own them. |
General risks. Past performance is not a reliable indicator of future results and performance targets may not be achieved; losses may be made.
Specific risks. Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.