The fixed income team, headed by Mark Nash, offers capabilities in multi-sector bonds (including both absolute-return and market-relative strategies), corporate bonds, including financials contingent capital bonds (often known as “CoCos”) and both local- and hard-currency emerging market bonds. The portfolio managers and analysts who specialise in these areas collaborate to share ideas on strategy, positioning and research – as well as developing a holistic view of the fixed income market.
This collaborative structure is pivotal to our investment philosophy that having specialists in each of the major areas of fixed income, who work closely with one another, is crucial to finding value in today’s increasingly interconnected markets.
Within multi-sector bond portfolios, our philosophy is to take an ‘all-weather’ approach, seeking to generate returns from interest rates, foreign exchange, credit, volatility and emerging markets. The managers place great emphasis on working within a centralised team, believing this brings the advantages of flexibility and coherence. The team offers both absolute return and market relative capabilities.
Mark Nash is portfolio manager and head of global bonds, while Nicholas Wall is a portfolio manager. They are supported by the wider fixed income team.
The Merian Global Dynamic Bond Fund seeks to provide excess return versus the benchmark, together with capital preservation. Using a combination of top-down and bottom-up analysis, the manager adopts a long-term, secular style of investing while applying a short-term, cyclical overlay to his strategy. In order to source additional alpha, the manager will use sophisticated financial structures and techniques.
The team places great emphasis on robust quantitative research, believing that this can help avoid behavioural biases and take advantage of market inefficiencies. It believes in accessing markets early and in considering a broad universe for investment opportunity. The team analyses the drivers of the asset class in depth, including global monetary policy, emerging market growth, changes in China’s economy, and emerging market domestic policy and reforms.
Highly experienced emerging market debt portfolio manager Delphine Arrighi is supported by Patty Cao, assistant portfolio manager.
Hard currency emerging market debt
The strategy is characterised by an active management style that is dynamic and flexible, separating sources of sovereign return. The three key components of risk and return are external debt, local rates and currency. The strategy combines a quantitative and fundamental style, investing in quasi sovereigns and government debt across a broad universe of instruments and emerging markets.