We aim to capture the credit premium offered in the global market while seeking to avoid permanent capital loss.
Global Credit – investment grade and high yield credit, actively managed.
- Long-standing investment philosophy of credit risk diversification
- Portfolio construction process backed by multi-dimensional, bottom-up credit research
- Clear relationship between environmental, social and governance (ESG) analysis, internal credit ratings and lower default experience
Why Global Credit
The strategy aims to provide clients with exposure to highly diversified and actively managed global corporate bond portfolios. The detailed credit research process has resulted in low default rates historically.
How we do it
The Global Credit strategy is based on the belief that returns are asymmetric over the medium term and that avoiding losers is more important than picking winners.
We also believe that credit markets are inefficient and that long-term performance can be achieved through responsive credit research, risk focused portfolio construction and the creation of a flexible investment universe rather than focusing on benchmarks.
We seek to construct highly diversified global corporate bond portfolios, which capture the credit premium offered in the market while seeking to avoid permanent capital loss.
Our investment process blends multi-dimensional and disciplined bottom-up credit research with sophisticated portfolio construction in order to mitigate concentration and correlation risks.
ESG assessments are a key factor in the assignment of internal credit ratings. These ratings are then used to assess relative value when compared to other similarly rated issuers.
The disciplined and long-running investment process has been enhanced in recent years through the development of our proprietary fixed income platform, ION. This tool facilitates information sharing and collaboration across our fixed income investment teams around the world.
Led by Tony Togher the team includes two dedicated portfolio managers based in Sydney, supported by a large team of credit analysts globally.
We draw on the wealth of knowledge and resources from specialists across our fixed income capabilities. More than 50 experienced professionals are employed in major markets including New York, London, Hong Kong and Sydney.
The Global Fixed Income team was established in 1986 and was previously part of Commonwealth Investment Management before Commonwealth Bank of Australia acquired Colonial Group in 2000. The Global Credit capability was launched in 2000.
We believe that excellence in RI, operating to the highest standards of professional ethics and our commitment to our stewardship principles delivers better long term investment outcomes for our clients.
Our RI strategy is based upon three strategic pillars of quality, stewardship and engagement. This strategy is underpinned by a strong governance framework and is supported by our specialist RI team. Each year we publish a responsible investment and stewardship report which outlines our progress in these areas and profiles each of our investment team’s approaches to responsible investment. We also include over 100 case studies of responsible investment in practice
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