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.

Flexible. Powerful.

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.

Targeting 5% – 7% p.a.
(gross)*

  • Dynamic, diverse return drivers
  • Long-term themes + market neutral + tactical
  • Idiosyncratic and sectoral allocations
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Aims for core bond volatility**

  • Aiming at mitigating drawdowns
  • Naturally embedded diversification
  • Multiple risk measures and models

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.

OUR APPROACH

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Sector rotation

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.

 

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Bottom-up selection

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.

MILESTONE

  • 2001 Launch of the strategy

  • 2008 Brian Garvey sole
    portfolio manager

  • 2016 Brij Khurana joins
    as co-portfolio manager

  • 2017 Launch of the UCITS
    vehicle

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.

STRATEGIC

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.

MARKET NEUTRAL

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.

TACTICAL

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.

FUND RISKS

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.

Please refer to the PROSPECTUS for further risk factors.

CONTACT THE SALES TEAM

Matt Knight

Business Development Manager

Charlie Crichton

Account Manager

Arnie Fomété

Relationship Analyst

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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 prospectus and KIID for the fund which contain further information on the risks and features of the fund. Unless stated otherwise data is as at previous month end.