FI

Fixed income funds

Wellington Management brings market-leading fixed income capabilities to managing more than USD 400 billion in client assets. We offer a broad range of fixed income funds targeting a variety of objectives.

FIXED INCOME OVERVIEW

Our fixed income capabilities span all publicly traded global bond market sectors. Our fixed income funds combine both top-down and bottom-up inputs to identify and exploit fixed income market inefficiencies around the world. Macroeconomic analysts and market strategists identify top-down structural and cyclical risks and opportunities, while our bottom-up, fundamental research approach draws on insights from both fixed income and equity analysts. This balanced perspective, combined with access to the management teams from the companies in which we invest, can help us anticipate changes in issuers’ capital structures before these changes are priced into their securities.

Fixed income funds can help meet a variety of objectives, including generating income, mitigating downside risk, diversifying a portfolio and enhancing returns. We offer funds that pursue each of these objectives.

All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment.

SPECIALISED EXPERTISE ACROSS SECTORS AND REGIONS

Wellington Management’s fixed income investment professionals — comprising specialist portfolio managers, market strategists, sector experts and more than 40 credit and quantitative analysts — are based in the UK, the US and the Hong Kong. Each portfolio management team is independent and empowered to make investment decisions for the fund it is responsible for. Our fixed income managers draw on Wellington Management’s global resources, which gives them access to diversified sources of return and may help to generate more consistent performance in different market environments.

Focus Funds

DEPTH, EXPERIENCE AND CONTINUITY

Our private partnership structure helps us to attract and retain world-class investment talent and allows us to align their performance incentives with the achievement of our fund investors’ objectives. This has contributed to the depth, experience and continuity of our fixed income investment professionals. Our dedicated fixed income professionals include:

Our investment professionals have exceptional access to company management teams, taking part in more than 10,000 meetings with issuers each year. Our credit analysts collaborate with our in-house equity analysts and with our dedicated environmental, social and corporate governance (ESG) research team, which provides proprietary sector, country and individual issuer assessments. We believe this integration of equity, credit and ESG research generates robust analysis with differentiated insights for our portfolio managers. Our balanced, multidisciplinary perspective can help us anticipate changes in issuers’ capital structures before these changes are priced into their securities.

SOPHISTICATED TOOLS FOR RISK MANAGEMENT AND PORTFOLIO CONSTRUCTION

We use advanced risk-management systems to help portfolio managers take only intended investment risks that have the potential to provide attractive returns for investors. These proprietary systems allow us to monitor concentrations of risk within investment styles and across the firm, while testing how investment positions might behave in challenging markets. We continue to refine these tools, ensuring their relevance amid ever-changing market conditions and continued innovation in new security types.

Emerging markets debt managers can get lost in the trees — it can be hard to see the forest. Our advantage at Wellington Management is being an emerging markets boutique in the midst of all these global resources. If our team was extracted from the firm, we wouldn’t do nearly as well.

Jim Valone, Fixed Income Fund Manager

INSIGHTS

Is the US dollar hitting an “oil slick”?
One of the biggest catalysts behind the rise of the US dollar over the past decade has been marked improvement in the energy trade balance. Portfolio Manager Brian Garvey thinks shifting trade dynamics could change that.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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June 2021
Is the US dollar hitting an “oil slick”?
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Wellington Euro High Yield Bond Fund: Seeking investment opportunities in out-of-favour areas of the market.
Portfolio Manager Konstantin Leidman and Investment Director Susan Chacko discuss why the European high-yield market can be an interesting asset class for clients, and they outline the philosophy of the Wellington Euro High Yield Bond Fund.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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June 2021
Wellington Euro High Yield Bond Fund: Seeking investment opportunities in out-of-favour areas of the market.
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Net Zero Asset Managers initiative
By targeting net-zero emissions, investors can contribute to the global decarbonisation effort. But what does this mean in practice? How do we pursue net zero while aiming to deliver competitive investment returns for clients? Our incoming CEO discusses our net-zero commitment, and members of our Sustainable Investing Team explain how we are approaching it.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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June 2021
Net Zero Asset Managers initiative
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<em>Future Themes —</em><br> Tomorrow’s world today
For over 40 years, at each new business cycle, Wellington investors have been presented with a challenge: Look past current headlines to find structural trendlines that will shape markets, society, and the economy in the next five to 10 years.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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May 2021
Future Themes —
Tomorrow's world today
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<p style="font-size: 13px; margin:7px 0;">FUTURE THEMES | SUSTAINABILITY</p>Water: priced for imperfection
Water scarcity could have profound humanitarian and economic consequences. Members of our Future Themes research team share insights from their work, including why they believe water is woefully underpriced and how investors can effectively gain exposure to this important theme.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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May 2021

FUTURE THEMES | SUSTAINABILITY

Water: priced for imperfection
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How “sticky” will higher inflation be?
The Fed's recent answer to the inflation question, "Is higher US inflation likely going forward?," only begs more questions. Global Investment Strategist Nanette Abuhoff Jacobson sheds some light.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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May 2021
How “sticky” will higher inflation be?
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Single-currency portfolios: the case for going global
We believe that including an allocation to global credit markets while hedging any currency risk can help to increase yield and reduce volatility through enhanced diversification.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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April 2021
Single-currency portfolios: the case for going global
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Thoughts on cash management with rates near zero
With front-end interest rates flirting with zero recently, the question of how to manage cash positions in a world of ultralow or negative yields has been top of mind for many clients. Investment Treasury Manager Jeff Saul shares his latest thoughts.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
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March 2021
Thoughts on cash management with rates near zero
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All figures are for the Wellington Management Group of companies as at 31 March 2021.

Past performance is no guarantee of future performance and can be misleading. Funds returns are shown net of fees.
Source: Wellington Management

© 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Overall Morningstar Rating for a fund is derived from a weighted average of the three, five, and ten year (if applicable) ratings, based on risk-adjusted return. Past performance is no guarantee of future results.

Investment in the funds described on this website carries a substantial degree of risk and places an investor’s capital at risk. The price and value of investments is not guaranteed and can go down as well as up. An investor may not get back the original amount invested and an investor may lose all of their investment. Investment in the funds described on this website is not suitable for all investors. If an investor is in any doubt as to the suitability of an investment in a fund, an investor should consult an independent financial advisor. The information on this website does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in any security including, but not limited to, shares in the funds. An investor should only invest in a fund once that investor has carefully read and understood the offering documents for the relevant fund, which are the relevant prospectus, and Key Investor Information which contain further information on the risks and features of the fund, and the latest financial reports and any other offering documents for the fund which are available on this Website. Unless stated otherwise data is as at previous month end.