The fund, which is clearly focused on value creation, is based on long-term principles and risk-adjusted returns. It is managed by Andrew Lake, Mirabaud Asset Management’s fixed income specialist, and Fatima Luis, senior portfolio manager.
The fund management team, made up of 5 members based in London, is responsible for selecting government bonds, corporate bonds (including high-yield), fixed and floating rate instruments in both developed and emerging markets. It is a successful formula that has enabled Mirabaud Asset Management to significantly increase the volume of assets managed in the fund by the fixed income team in just three years, reaching almost $500 million of assets at the end of August 2016.
For Andrew Lake, Head of Fixed Income and Senior Portfolio Manager at Mirabaud Asset Management: “actively managing the duration and credit exposure across the business cycle has been the main driver for the fund’s excellent performance. Since its creation, and given the interest rates in most markets worldwide, we knew that adopting a passive approach would not enable us to meet investors’ expectations in terms of yield and capital preservation”.
As Lionel Aeschlimann, partner of the Mirabaud Group and CEO of Mirabaud Asset Management, explains: "the Global Strategic Bond Fund has been designed to provide a crucial and effective solution to counteract the change in trend experienced by bonds in recent years and to minimise the consequences that interest rate normalisation can have on portfolios".
The objective of the fund is to deliver, in a full cycle, positive performance on the benchmark while controlling volatility to limit the risk of losses. With this in mind, the investment strategy is based on a dynamic, flexible approach that combines both top-down and bottom-up assessment of various instruments, sectors and markets in order to identify the best opportunities at all times and to generate returns on the capital invested, whilst ensuring portfolio risk is kept under control and trying to limit the impact of volatility on the fixed-income market in the short term.