Bond markets can be fickle and unpredictable. And never more so than today.
In this more volatile environment with its changing political landscape and shifting monetary policy, huge opportunities exist for fixed income and FX investors.The key to unlocking those returns is a bond fund that can invest anywhere and at any time regardless of the market’s direction.
The fund utilises the full fixed income and currency universe, is actively managed and aims to deliver returns in all market conditions. The fund’s managers use global government bonds, foreign exchange, global credit, emerging market debt and volatility to seek to achieve their return target.
The fund seeks diversification from across the breadth of fixed income to increase risk efficiency. The fund avoids a central and persistent investment theme: each position exists only if it is part of the portfolio managers’ forward-looking view on the market.
The portfolio-construction process is pivotal to achieving the fund’s objectives. The portfolio managers utilise a proprietary technique as part of this process, which is transparent and repeatable.
A risk budget is assigned to each position based on conviction, after which position sizes are further adjusted for volatility and correlations.
The fund is managed by Mark Nash, Merian’s head of fixed income, and Nicholas Wall, who together have some 29 years of experience. They invest in government bonds, credit and currencies around the globe with a strong emphasis on highly-liquid assets. Working within a centralised team of experts, these portfolio managers are looking to generate a gradual rise in performance in all market conditions. They can also short the market should an opportunity arise.