The Short Duration High Yield strategy invests in corporate bonds with maturities up to three years. It aims to limit volatility when interest rates are rising as well as to generate long-term returns. It employs comprehensive risk management designed to maximise return per level of risk.
The limited amount of time until maturity helps minimise the risk that rising interest rates will cause their value to decline. While they produce less income than longer duration fixed income investments over the long term, short duration bonds may experience smaller price variations.
Our short duration strategy is designed for investors with short time horizons or for those seeking to mitigate interest rate risk, and to provide them flexible diversification that factors in market conditions.
It combines rigorous bottom-up security selection coupled with thorough top-down macro analysis. We additionally focus on quantitative criteria and the macroeconomic backdrop to make decisions.
Launched in 2013, our Short Duration Strategy creates well diversified portfolios, mainly invested in bonds issued by OECD companies, mostly European, and denominated in euro.