- Bond strategy on European credit, with a “mid-yield” objective.
Its strength lies in the absence of a specific benchmark, with a broad investment universe, but with a minimum exposure of 50% to the Investment Grade component and an average portfolio rating between BBB and BB.
- Exchange rates are always hedged.
- Total return approach, with dynamic risk management
- Credit spreads as main source of performance
- Low duration compared to reference indices
- Generation of alpha from regulatory complexities on subordinated financial instruments and analysis of the technical characteristics of individual issues
- Capital preservation through the search for issuer quality
- Diversification at sector level, issuer level and within the capital structure
- Portfolio risk intensity is defined through the selection of investments by integrating both top-down and bottom-up analysis.
Attractive carriage, issuer rating stably around BBB+, thanks to the investment in quality subordinates, and limited duration are the most significant peculiarities of the segment, together with the wide margin of manoeuvre, which allows to remodel the risk according to fundamental expectations.
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- The stated average rating targets and the split between Investment Grade/High Yield components, corresponding to a Xover index, make the broad investment universe a key strength, allowing for more flexible and efficient selection of individual issues by evaluating a broad spectrum of opportunities.
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