Fixed interest, not fixed thinking
RLAM’s fixed interest team has developed a reputation as one of the UK’s leading managers of sovereign and corporate bonds, offering a range of pension products and OEICs. Our success is based on truly understanding the investment objectives of our clients and using our in-depth market knowledge to exploit investment opportunities that help us meet these aims. It is the experience and skills of our fund management team that set us apart, giving us an edge in a highly competitive market.
Quite simply, by using our experience and exploring parts of the market that others overlook, we are able to add value for our clients.
Good people
The quality of our team is the key driver of our success. Our 10 fund managers and analysts have an average of 16 years’ investment experience and this brings the confidence to maintain non consensus positions where we have strong opinions. Many of our managers began their investment careers before the ratings agencies were established. This has encouraged a tradition of independent mindedness within the team, using proprietary analysis and creative thinking to uncover the best investment opportunities.
Robust process
We are value investors in bonds, targeting multiple sources of outperformance (such as yield curve positioning, duration management and stock selection) for our clients. We believe that government bond markets are relatively efficient, but as active fund managers we can exploit valuation anomalies as they occur, particularly in light of the unprecedented conditions we have seen under Quantitative Easing.
In comparison, the credit market is less efficient. By considering a wider investment universe than many of our competitors – including unrated and asset backed bonds – we can uncover value in many often overlooked areas of the market.
We insist on diversification within our portfolios, giving us a level of security in case of individual defaults. We spend a lot of time examining the covenant structures of the bonds we hold to ensure we have the greatest level of protection for our clients.
Strong performance
A high quality team and a robust, repeatable process have combined to deliver excellent performance for our investors. We can demonstrate high and consistent outperformance in a wide variety of economic and market conditions and our many industry awards are further testament to the strength of our proposition.