Investment Rationale

The Dynamic Real Income Note is designed to provide positive inflation adjusted returns, especially in environments of stable low as well as rising interest rates. The strategy's dynamic asset allocation allows for a fast and flexible reaction to changing market conditions and an active duration and exposure management systematically steers interest rate exposures.

The investment goals are achieved through:
  • The dynamic core-portfolio allocation to efficient Fixed Income instruments including Credit, Emerging Market Debt, Inflation Linked Bonds and short term Floaters
  • The active management of risk factors, particularly duration, spread duration and interest rate volatility;
  • A tactical allocation to real assets positively linked to inflation;
  • Unique yield enhancement strategies through the use of derivatives and directional overlay strategies for dynamic leverage and opportunistic exposures.