Bonds
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.
With wealth management at the core of our being, BLI exploits investments in bonds to generate long-term returns while reducing volatility within its portfolios.
We prioritise quality as a fundamental criterion for selecting issuers. Our active, unconstrained strategy seeks to identify issuers with strengthening fundamentals, creating a virtuous circle of valuation and performance.
Four fundamental pillars
Quality and creditworthiness
We select issuers according to rigorous quality criteria: creditworthiness, governance, their non-financial characteristics and a healthy cash position. This approach enables us to identify issuers whose fundamentals are strengthening or stabilising, leading to an improvement in their credit rating and, ultimately, a reduction in their financing costs.
Conviction and active management
Through in-depth analysis of regional and sector dynamics in the bond universe, the macroeconomic environment and issuer fundamentals, we are able to identify value opportunities and generate consistent performance over the long term.
Strategic flexibility
We exploit the decorrelation effects between different sub-classes of bonds by adjusting three performance drivers: duration, credit spread and currencies. This flexibility allows us to optimise our portfolios’ return according to market conditions.
Risk control
Our approach prioritises diversification and volatility control to minimise downside potential. We avoid issuers with deteriorating credit metrics – no matter how cheaply their bonds are valued.
A conviction-based strategy focused on the long term and capital preservation
This rigorous methodology enables us to build high-performing bond portfolios by placing paramount importance on solid fundamentals and financial stability. Our investment discipline, combining qualitative selection and risk control, aims to preserve and enhance our investors' capital over the long term.