The Aberdeen fixed income and currency process dates back to the late 1980s. The process is based on the following core values: a focus on proprietary research, identifying investment opportunities with attractive risk-reward characteristics, combining multiple non-correlated investment decisions with risk monitoring, and, management and control at all stages of the investment process. Our global client base invests in a range of local, global and specialist fixed income and multi-alpha strategies.
Active management: Our aim is to add value by exploiting market inefficiencies in the areas of relative value, credit, interest rate and currency management. These sources of added value are combined to construct appropriate investment strategies that meet individual clients' return and risk objectives across a variety of local, global and specialist benchmarks and liability profiles. Solutions can be delivered for both constrained and unconstrained mandates
By creating small teams focused on specialist areas, we have established an investment process and structure which is adaptable to a wide and changing set of client requirements. Our use of derivatives allows us to separate sources of risk and return, and construct funded or unfunded investment strategies.
Proprietary research and idea generation: We have dedicated portfolio managers and analysts in three major time zones, with a particular emphasis on relative value and credit, including high yield and emerging debt. Our macro-driven investment teams (interest rate and currency) benefit from local market contact with investors, policy makers and economists.
Portfolio management: Our aim is to blend individual investment decisions into a fully diversified local, global or specialist portfolio with attractive risk-return characteristics. Flexibility towards client needs and an ability to meet changing market requirements - such as Liability Driven Investment - is essential. We work closely with clients on performance objectives, guidelines and benchmarks.
Our fixed income philosophy is based on the following core beliefs:
- Pricing inefficiencies exist and can be exploited
- The opportunities within fixed income markets demand significant specialist resources
- Decision making is inseparable from research
- Alpha should be generated within a risk framework
- Diversified sources of added value improve the risk-return profile
- An unconstrained investment universe increases risk adjusted returns
- Specialist investment teams are key to predicting valuations
- A dynamic and evolutionary investment process is needed to keep ahead of changing market opportunities
- These core beliefs are central to each of our underlying products