This is how we select bonds

We have systematised good sense, ensuring a disciplined selection of bonds for our portfolios.

We use five models which on the basis of a string of indicators of value and momentum (the trend in the bond market) come up with signals for use in our overall investment strategy.

For instance, we get signals that help us make decisions:

• Should we increase or reduce interest-rate risk?
• How much risk should we assume on high-yielding bonds?
• Which ones among the emerging-market currencies look the most attractive?
• Which ones among the emerging-market countries look the most attractive?

Team Fixed Income evaluates the reliability of the signals (evaluation) and then decides about the overall allocation strategy of the portfolios. Based on the overall strategy, the portfolio managers in small teams decide on the composition of the individual portfolios.