Institutional solutions

Buy and maintain credit

Buy and maintain credit is our core flagship fixed income strategy, with integrated ESG factor analysis, helping our clients access the investment-grade credit markets.

The opportunity 

Our buy and maintain credit strategy provides a solution to the risk of bond market illiquidity. We offer diversified, flexible portfolios focused on long-term outcomes, with smart portfolio construction helping to mitigate downside risk over the long term.

In our view, it is a smart alternative to passive investing for core portfolios, designed to avoid the pitfalls of market-weighted index tracking. We aim to capture the returns from the credit market – with a similar credit rating and duration profile – with less downside risk.

Our buy and maintain portfolios are built on quality. Credit selection is bottom-up, driven by recommendations from our global team of fundamental credit analysts. We maintain a strong focus on long-term financial, business and ESG risks, both at investment and on an ongoing basis.

Our expertise 

Cost-efficient  

An active approach means we are able to make smart decisions on selling in times of market stress, resulting fewer trades and lower trading costs. When we do trade, we can draw on our deep credit investing capabilities and innovative trading techniques to help minimise transaction costs.

Collaborative  

We can create customised long-term credit portfolios that match your specific needs. This could include elements such as your investment principles, risk budgets or regulatory frameworks. Our pooled options enables us to offer flexible, cost-effective access to fully ESG-integrated credit strategies in sterling, euro and global credit.

Transparent 

Portfolios are based on clear portfolio parameters, with regular reporting structures built-in. We provide clear and concise information including timely and clear holistic views on all relevant measures of success to empower your decision-making.

Sustainability 

Responsible investment has always been about the long term. Fixed income investors need to be sure that a business has a resilient strategy for the life of a security, which could be 20 years or beyond.

We believe that integrating environmental, social and governance (ESG) analysis into our credit strategies could lead to more effective investment solutions that create sustainable value for our clients, while potentially helping to address global challenges.

We believe that integrating environmental, social and governance (ESG) analysis into our credit strategies could lead to more effective investment solutions that create sustainable value for our clients, while potentially helping to address global challenges.

This includes:

  • Proprietary ESG methodologies
  • ESG analysis embedded into our deep fundamental credit research
  • Qualitative analysis framework for Green, Social and Sustainable (GSS) Bonds
  • Integrating ESG performance indicators into investment portfolio decision-making tools
  • Strong governance and ESG risk monitoring
  • Transparency through reporting on ESG and engagement

Carbon transition buy and maintain 

Our climate-aware buy and maintain credit strategy is designed to benefit from the climate transition by understanding how the physical risks of climate change and the political and regulatory momentum around the issue will impact the value of credit investments over time.

Find out more about our carbon transition strategies

Investment risks

Risk considerations for this strategy include: 

  • Market risk and risk of loss of invested capital 
  • Risks associated with fixed income securities, including, but not limited to, interest rate risk, credit risk and liquidity risks 
  • Risks linked to global investments 

Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. 

Important information

Marketing communication. For professional investors only.

Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.

Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.

This document is directed only at person(s) who have professional experience in matters relating to investments (“relevant persons”). Any investment or investment activity to which this document relates is available only to and will be engaged in only with Professional Clients as defined in the rules of the Financial Conduct Authority. Any person who is not a relevant person should not act or rely on this document or any of its contents.