We believe that global credit markets are inefficient and provide opportunities for managers to systematically add alpha through active management.
Within global fixed income markets, we believe that credit is a distinct asset class that produces a consistent risk premium. Further, we believe that this represents a compensated risk for market participants. Within this space we believe we can add value. All RPIA strategies focus on isolating the areas of compensated risk while hedging those areas that we believe are uncompensated.
We apply an absolute return framework to all our mandates as we do not believe global bond benchmarks are the appropriate starting point to building a credit portfolio. Therefore, all strategies are run agnostic to benchmark positioning and instead allow maximum breadth for managers to express views on global credit through sector/industry concentration, instrument types, ratings and short positioning.