The bond market has been sending important signals recently. From yield volatility and persistent inflation, to rising global debt loads, today's fixed income environment calls for a more thoughtful approach that looks beyond our borders.
Summary:
The bond market has been sending important signals recently. From yield volatility and persistent inflation, to rising global debt loads, today's fixed income environment calls for a more thoughtful approach that looks beyond our borders.
Advantages of global fixed income strategies
In these unprecedented times, global fixed income strategies can offer key advantages like broader geographical diversification, active duration management, and the ability to capture return opportunities through currencies and credit markets. NEI Global Total Return Bond Fund's flexible and active approach allows it to tap into investment opportunities from around the world; while still delivering the stability and consistent income that fixed income investors rely upon.
An unconstrained opportunity set
Managed by European-based Amundi Asset Management, the Fund aims to maximize return potential by leveraging market inefficiencies and identifying optimal investment opportunities in global government bonds, corporate credit, and currency markets. The Amundi London team expresses its investment views through a rigorous investment process that considers global monetary policy, macroeconomic conditions, inflation expectations, business cycles, credit risk, and comparative regional opportunities.
Taps into multiple sources of value
The Fund leverages multiple levers and strategies to drive value across the portfolio. Some of these include:
- Duration
- Yield Curve Positioning
- Credit
- High Yield
- Emerging Markets
- Currencies
Active approach to changing market trends
The Fund also employs tactical trades to navigate changes in the market to capture upside or protect from downside. For example, during the Silicon Valley Bank crisis in March 2023, the portfolio manager adjusted the duration on USD to underweight based on their view that interest rates would eventually increase. This adjustment paid off as it became apparent that the crisis was not systemic. This nimble approach to asset allocation helps reduce volatility even in uncertain market environments.
Maximizing potential through a wider lens
The Fund considers a wide investment universe that includes sovereign bonds, corporates, high yield bonds, emerging market debt, convertible bonds, and currencies, allowing investors to benefit from broader diversification and lower correlation of asset classes. With a larger exposure to non-North American issuers, the Fund is uniquely positioned in the Canadian marketplace, offering investors a differentiated and complementary exposure to their global and Canadian fixed income investments.
A proven track record
The Fund has over a decade of total return and since its inception in 2013, the strategy has delivered value through a variety of market environments. Despite elevated volatility in the bond markets, the NEI Global Total Return Bond Fund (Series F) has delivered strong growth since inception and added value during periods of both equity and market fixed income volatility in 2022. The Fund's flexibility allowed it to add value through multiple levers in 2022, including short duration positions and currency allocations.
Why choose NEI Global Total Return Bond Fund?
The NEI Global Total Return Bond Fund is designed to help investors reach their financial goals. Whether it’s saving for retirement, seeking a steady income, or diversifying portfolios, the Fund offers distinct advantages in today's dynamic markets. It seeks growth amidst changing market conditions, provides diversification to mitigate risk, and delivers consistent monthly income.
Dive into the full article to see more of the Fund's advantages including its flexible and active approach, and to learn how it’s achieved over a decade of positive total returns.
