Multi-Sector > Multi-sector bond
strategies typically aim to capture the income, return potential and diversification benefits
offered by credit markets worldwide. This universe can include investment-grade and high-yield
corporate credit, residential and commercial mortgage-backed securities, asset-backed
securities, emerging market debt, bank loans and collateralized loan obligations (CLOs).
Unconstrained > Unconstrained (now called
Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure
in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular
bonds and derivatives, used to establish negative exposure to rates, while maintaining positive
exposure to credit. It doesn’t require the portfolio manager to track an index or
benchmark.
Credit > Credit – Also known as corporate
strategies, are issued by companies for a wide variety of purposes, including buying new
equipment, investing in research and development and buying back their own stock, just to name a
few. Credit rating agencies assign credit ratings based on their evaluation of the risk that the
company may default on its bonds. Based on their credit ratings, bonds can be either investment
grade or non-investment grade.
Country > Country strategy: investment approach
that focuses on constructing a portfolio of fixed income securities based on the analysis and
evaluation of countries' economic and political factors. This strategy aims to capitalize on
opportunities and manage risks associated with investing in bonds issued by different
countries.
In a fixed income country strategy, investment decisions are primarily driven by the assessment
of a country's macroeconomic indicators, monetary policy, fiscal stability, geopolitical
factors, and other relevant factors that can influence the creditworthiness and performance of a
country's debt securities.