Flexible Fixed Income
Fixed income’s classic performance profile of steady returns with some downside mitigation has become elusive. Against this backdrop, we believe fixed income investors need to stay nimble, flexible, diversified and alert to opportunities across the global bond universe.
Poised for the challenge
WHY OPPORTUNISTIC FIXED INCOME?
Today’s fixed income markets are challenging for investors, with low return expectations and increasing uncertainty. We believe the Wellington Opportunistic Fixed Income Fund has the potential to leverage a diverse set of return drivers to generate an attractive return profile.
No assurance or guarantee is made that any target return can or will be achieved and your capital is at risk.
Performance target is gross of all fees and expenses. If all fees and expenses were reflected, the performance target would be lower.
*In US dollar terms over the course of a business cycle, typically 3 – 5 years. This is a US dollar-based portfolio and share classes in other currencies may experience different returns because of hedging and interest-rate differentials.
**We define core bond volatility as being similar to that of the Bloomberg Barclays Global Aggregate Bond Hedged to USD. During times of market stress, target volatility may be different from the stated aspiration.
We believe it is increasingly important to be nimble, flexible, and opportunistic to adapt to market changes. With that in mind, we have built a strong sector rotation framework that seeks to benefit from market opportunities across credits, rates and currencies.
Bottom-up security selection helps the team manage the overall risk and liquidity of the portfolio. Our process leverages Wellington’s robust research capabilities, including sector teams that provide differentiated insights through their specialist expertise in their dedicated sectors.
Diversified alpha sources
Relying on traditional return engines has proven challenging in today’s fast-changing world. By using a diverse set of alpha sources, in combination with strategic, market-neutral and tactical approaches, the fund has the potential to provide resilient risk-adjusted performance over time.
2001 Launch of the strategy
2008 Brian Garvey sole
2016 Brij Khurana joins
as co-portfolio manager
2017 Launch of the UCITS
3 ALPHA SOURCES
We allocate dynamically across three key approaches – strategic sector themes, market-neutral strategies and tactical trades. We seek to capture complementary total-return opportunities, while preserving the risk characteristics many clients expect from their core allocations to bonds.
Each source of potential returns typically invests across multiple time horizons, styles and geographies, with different return drivers and low correlations, resulting in embedded portfolio diversification.
1 – 5 years thematic allocations to out-of-favour sectors where we believe we have uncovered both value and a catalyst for positive structural change. These sector allocations combine top-down macro views with differentiated investment insights from dedicated sector-specialists.
1 – 3 months relative-value strategies that seek returns with low correlations to traditional markets. These strategies use sector specialists with existing track records to seek absolute return across credit, rates and currencies, while offering potential downside mitigation in periods when returns from broad fixed income markets are low or negative.
1 – 12 months allocations through derivatives and/or physical bonds. These allocations seek to profit from short-term market dislocation opportunities across credits, rates and currencies.
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.
Select a risk to learn more about it.