Investment Grade: Crossover Short Duration

Our short duration crossover strategy focuses on investments in corporate bonds with ratings ranging from single-A to single-B. Whilst allocating to both investment grade and high yield, the strategy generally seeks to maintain an average investment grade rating and a duration-to-worst of 2 years or less.

The strategy aims to generate, in our opinion, attractive risk-adjusted returns and achieve capital preservation. This is sought through prudent allocation between short duration investment grade bonds, which tend to be more correlated to interest rates and high yield rated bonds which tend to be more correlated to equity markets. Active allocations can also made geographically diversified by sector.