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Asset classes

Global Markets Alpha

Fixed income investing has changed significantly during the past few years. Today’s challenging markets call for greater focus on risk management, coherent portfolio construction and the ability to access non-traditional fixed income assets and investment approaches.

Global Markets Alpha provides an efficient and flexible way for investors to access global fixed income markets and secure excess returns through a framework that can cater for varied – and changing – risk appetites and return expectations.

Key points

  • Diversification across investment ideas, strategies, styles and time horizons
  • Transparency and flexibility through clear separation of alpha and beta exposures
  • The ability to manage risk without impairing managers’ freedom to perform
  • Isolation of alpha opportunities with flexible risk management through derivatives

Our research suggests that volatility in financial markets will continue and that returns from many asset classes are likely to be lower than investors need or have come to expect.

At the same time, investors are finding it difficult to diversify their portfolios using traditional investment approaches. For instance, greater correlation in equity markets means that moving from domestic to global equity strategies delivers less diversification than you might expect. However, in fixed income markets investors are differentiating between the risks in individual asset classes and markets. So investing outside your domestic government bond and credit markets can provide genuinely different investment ideas with which to diversify your portfolio and boost risk-adjusted returns.

Uncertainty and risk aversion are driving investors to question their fixed income strategies, and to seek alternative approaches that provide greater certainty and transparency. Global Markets Alpha strategy has been developed with this in mind.