Cash+ Strategies
Global Fixed Income
Why use short duration strategies?
In an environment of persistently low interest rates, the returns available to investors are depressed. Longer dated bonds, where the yield may be higher, come with significantly increased interest rate risk and therefore increases the risk of capital losses. Short duration strategies can provide an investor with an additional yield to that of cash deposit rates or money market instruments, while limiting capital risk due to interest rate rises in the longer term.
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Treasury solutions
Our Treasury Solutions strategies aim to deliver a return in excess of cash rates, through investing in short-dated fixed income securities, while maintaining low volatility, and a focus on capital preservation. The strategy can be tailored to suit your specific requirements depending on your yield requirements, ability and willingness to incur volatility versus the need for capital preservation and liquidity. We also customise the investment universe to satisfy specific requirements, such as limiting exposure to certain regions, sectors, instrument types, and individual issuers based on any number of metrics, such as Environmental, Social and Governance credentials.
Our flagship Treasury Solutions strategy is the Short Duration Global Bond Fund, details of which can be found below.
Short Duration/Treasury solutions
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Global Floating Rate Notes strategy
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Global Multi Asset Credit strategy
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Further details
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Short Duration Global Bond Fund The objective of the Short Duration Global Bond Fund is to maximise capital preservation, with a focus on liquidity and security, whilst achieving returns in excess of cash deposit rates. The strategy targets short-dated, high quality investment grade fixed income securities; the average fund duration is approximately 2 years or lower. We have a global relative value approach to credit investing, looking across the world for the best sources of value in bond markets (any foreign currency exposures are fully hedged, through the use of derivatives). |
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Global Floating Rate Notes Strategy The aim of our strategy is to generate attractive returns in a low yield environment whilst aiming to deliver additional income through a rising interest rates environment. The strategy benefits from three key aspects of our approach: Global opportunity set, Crossover focus and an expansive investment universe with access outside of corporate markets. |
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Global Multi Asset Credit Strategy Our Global Multi Asset Credit strategy makes it possible to take advantage of the opportunities available in the global credit market while targeting positive returns over the market cycle. The strategy is unconstrained; it aims to achieve stable, positive returns through controlled risk management, and is not beholden to any deficiencies of traditional benchmark investing. |
Contact us
It is important to choose the right short duration investment to meet your needs. Please contact a member of our sales team to discuss your requirements and to asses where our short duration strategies can fit into your portfolio.
Insights
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Active is: Integrating ESG ESG: an essential risk mitigation tool for fixed income portfolios |
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Ladders and buckets Even as global growth and inflation return to trend levels, governments and central banks across major advanced economies have been happy to keep interest rates low or negative, given the large amounts of public debt and the fragility of the recovery. |
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ESG in fixed income Mark Wade, Head of Industrials & Utilities Research, discusses why ESG is more than just ratings application and how it forms a core part of the quantitative and qualitative analysis within the Allianz Global Fixed Income team. |
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Finding the sweet spots in credit Matthew Chaldecott, Global Fixed Income Product Specialist, discusses how to target the ideal portfolio mix in the current credit environment. |
What other strategies are available? |
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested.
Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including short positions with respect to fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions.
Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail.
This is a marketing communication issued by Allianz Global Investors UK Limited, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk. Allianz Global Investors UK Limited, company number 11516839, is authorised and regulated by the Financial Conduct Authority. Details about the extent of our regulation are available from us on request and on the Financial Conduct Authority's website (www.fca.org.uk). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited.