Global Capital Structure Opportunities
This strategy opportunistically invests across the capital structure of investment grade-rated companies to build concentrated portfolios, holding fewer issuers than a traditional investment-grade corporate portfolio.
Why choose this investment strategy?
Our investment grade credit team manages our Global Capital Structure Opportunities strategy. The team comprises specialized teams dedicated to each industry we invest in, with the majority of portfolio recommendations coming from the financial industry team. Guided by their combined expertise, our Global Capital Structure Opportunities strategy can offer several benefits:
• Top-down macro perspective, bottom-up research: Our top-down approach identifies the macro risk drivers and technical aspects of the market that may affect volatility and valuations. This, paired with our proprietary internal framework that focuses on bottom-up fundamental, relative value, and technical research, ensures a consistent process for finding risk-adjusted investment opportunities for your portfolio.
• Broad coverage of the capital structure: Our team’s ability to identify relative value is enhanced through broad coverage of the capital structure, which ranges from convertibles all the way to the most senior secured part of the capital structure.
• Comprehensive risk controls: The strategy uses multiple lines of defense to help manage portfolio risk, and invests in liquid issuers to allow for quick portfolio repositioning. This provides you with the potential for a better risk/reward balance in your portfolio.
Where Global Capital Structure Opportunities invests:
The core of this strategy is invested in investment-grade rated firms across all parts of the capital structure, including senior/covered bonds, lower tier 2 bonds, hybrids, perpetual preferred securities, and contingent convertible capital. Allocations to each of these parts of the capital structure are dynamically adjusted as opportunities in the market shift.
Our approach to opportunistic investing is guided by three fundamental elements: dynamic asset allocation, high-conviction security selection, and multiple lines of risk defense. Combining these elements allows us to be more aggressive in potentially adding value to your portfolio