Bryan Goh, Bordier & Cie (Singapore)
Chief investment officer
Unconstrained bond funds are hard to analyse, because they lack a benchmark. In our selection, we seek low correlation with traditional bond markets, i.e. duration and credit spread.
One issue we have with unconstrained bond funds is their usually very low volatility, which makes them capital inefficient. Also, it is difficult to find one manager who is an expert in all the various credit markets.
We prefer to allocate specifically to individual managers who are experts in their field. In this environment of rising rates and leverage, we allocate to funds of CLOs from first loss to BBB to agency mezzanine mortgages and to leverage loans, to name a few.
The granularity and transparency of this approach allows us to run macro overlays, such as curve trades and sovereign spread trades.