BLI’s bond management strategy enables investors to benefit from the virtuous dynamics of the stable or improving quality of the issuers identified and solid credit ratings due to their proven control of debt service. We avoid issuers with deteriorating credit metrics – no matter how cheaply their bonds are valued.
Our investment philosophy
When selecting issuers, quality is the priority.
Our active and unrestricted strategy exploits the virtuous circle of:
- stable or improving issuer quality
- falling cost of debt
while controlling the risks.
Active bottom-up management
- Managing the portfolio based on a benchmark index is illogical
- The structure of the portfolio is the result of the selection of securities
- Access an extensive range of investment categories.
- Exploit the decorrelation effects between fixed-income sub-asset classes.
Combination of three dimensions of risk
- Modified duration
- Limit volatility and downside risk
- Diversification (geographic, type of issuer, quality of debt, etc.)
Priority on issuers exemplifying the virtuous circle of:
- Stable or improving quality
- Falling cost of debt
Our investment process
Top-down considerations to define the framework, a bottom-up approach to applying it
Bond management and sustainable development goals
BLI's bond management integrates the sustainable development goals in three areas defined by the UN:
- ESG optimisation
- Liquid impact investing
- Alternative impact investing and microfinance
In particular, through microfinance, we are targeting the reduction of poverty and access to quality education, healthcare and affordable clean energy.