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We believe that global bond and currency markets are only partly efficient and that active management of global fixed income portfolios can add value for clients. We believe that adding value for clients consistently requires an emphasis on risk-adjusted returns, in which the pursuit of outperformance is balanced against the active risk taken to generate that performance.

Investment Approach

The global fixed income process is a combination of both top down and bottom-up analysis. The team focuses on five potential sources of risk and return: country allocation, duration and yield curve positioning, currency allocation, sector rotation and security selection.

The team employs a fundamentally driven process supported by quantitative modeling & the analysis of current market conditions. Fundamental economic research drives our bond market outlook over the medium term, with a focus on the overall global environment, country specific trends, the relationship between growth, inflation, and monetary policy expectations. We use technical analysis to better understand short-term market dynamics and aid strategy implementation.

Close proximity of all sector teams facilitates intra-meeting sector discussions in rapidly changing market conditions. We leverage our sector team structure to incorporate the views and analysis of research staff, identify relative value opportunities, and implement sector and sub-sector issue selection strategies.

Distinguishing Features

  • Experienced team of global specialists who have been managing global fixed income portfolios since 1989
  • A deep and stable investment team averaging 19 years of industry experience*
  • An emphasis on risk- adjusted returns
  • An extensive commitment to fundamental fixed income research
  • Portfolio construction within a rigorous risk management framework
  • Excellent historical track record

Investment Process

When constructing global fixed portfolios we focus on:
  • Taking measured position sizes
  • Diversification among countries and issuers
  • Calibrating portfolio risk to match clients’ investment guidelines and risk tolerance
Balancing macro- and micro-economic inputs
  • Top-down positioning of portfolio given market outlook and environment
  • Bottom-up security selection, leveraging the expertise of the Columbia Management fixed income sector teams in the management of sector and sub-sector allocations
Idea generation — an integrated multi-sector process
  • The Global Rates and Currency Team reviews portfolio positions and risks on a daily basis
  • The Team oversees and coordinates the process, ensuring thematic consistency within the context of each client’s guidelines

*as of 6/30/13